Short Term Insurance

What Does Short Term Insurance Mean?

Short-term insurance provides financial coverage for a specific asset over a limited period, typically less than one year. For example, an individual might obtain a short-term property insurance policy that covers their property for six months. While short-term insurance is commonly used for health coverage, it can also apply to various other types of insurance, excluding life insurance.

Insuranceopedia Explains Short Term Insurance

People often purchase short-term health insurance during unexpected situations, such as losing their health insurance coverage. For instance, if someone loses their job and previously relied on employer-provided health insurance, they might opt for short-term health insurance to bridge the coverage gap until they secure another job. Like long-term insurance, short-term coverage also requires the payment of premiums.