Short Term Policy
Definition - What does Short Term Policy mean?
Short term policy is an insurance for those who do have access to or are not yet eligible for policies that cover a lengthier period or for coverage that is comprehensive. The period covered for this policy is one month to six months. Compared to regular insurance, the benefits are limited.
Insuranceopedia explains Short Term Policy
The objections to a short term policy are strong.
It is not renewable. After the policy expires, the policyholder does not have a choice but to buy a new one or avail of the better, longer term policy.
It does not cover pre-existing conditions. So, if the policyholder has diabetes before buying the policy and he gets sick as a complication from diabetes while the policy period is still in place, he or she might be denied coverage.
In the US, people buy this policy if they have missed out on the enrollment period for the health insurance provided by the government. In other words, this is an option only if one can not yet buy a better policy.