When one has recently been given the pink slip, COBRA insurance usually steps in to continue coverage. However, its price tag could be very steep, and a better alternative might be short term insurance. These days, this cost distinction becomes even more important.

COBRA insurance guarantees continuation of medical coverage for up to 18 months after a person loses his/her job. COBRA insurance, however, is more expensive than regular insurance, and the conditions for qualification are stringent. In this tough situation, short-term medical insurance can really help a family by providing much-needed medical coverage.

Short term medical insurance offers a load of benefits including physician visits in case of illness, hospitalization, and most medical care. That includes ambulance services, surgery, prescriptions, and diagnostic tests. Previously existing conditions, and anything considered routine care (teeth cleaning, eye check ups) are not covered under the plan.

Short-term medical insurance can be purchased for a month, to a year, in most cases. The policy can usually be renewed quite easily; however, some plans consider each renewed policy as a new one, applying pre-existing conditions and premium clauses accordingly.

It is important to remember that short term medical insurance cannot be an adequate long-term health insurance plan. It is primarily meant as coverage for temporary periods. Long term health insurance plans offer several critical benefits not often available to the short term health insurance customer: scheduled physician visits and maternity, for instance.

When applying for long term health insurance later, you might be asked about continuous coverage, and some short term insurance plans apply toward continuous coverage. It is also taken into account when determining pre-existing conditions. If you are signing up for an individual long term health plan, the temporary insurance may not count as continuous and creditable coverage.

A short term health insurance is also easier to get into, since there are not many underwriting procedures, unlike COBRA insurance. It can also be done online via a few clicks of the mouse.

For temporary insurance of around six months (or less), short term insurance can work quite well. It can also be a better option than COBRA insurance for many people, but it is important to know that short term insurance is just that short term.

Dan Miller often writes about short term insurance.