Graduate Health Insurance : Getting Short Term Coverage While Job Searching

After graduating from college and no longer attending school as a full time student, many young adults are taken off of their parent’s health insurance policy. While health insurance may not be the first of a new graduate’s worries, it is important to remain insured. In the case that a young adult were to get into a car accident or fall ill, graduate health insurance would ensure that they are covered, instead of beginning their adult life with expensive medical bills.

What is Graduate Health Insurance?

Graduate health insurance is a short term insurance policy that will ensure that a new graduate has proper coverage while they begin their job search. These policies are generally obtained on a monthly basis and can be kept for six to twelve months.

What Are the Benefits and Disadvantages of Short Term Health Insurance?

There are a few benefits to obtaining a short term health insurance policy, rather than obtaining a regular policy for a short period. The main benefit is that short term policies are usually cheaper, which is great for graduates who have not yet found a job. Another benefit is that coverage can be discontinued once the graduate has become eligible for health insurance from their employer. However, there are also disadvantages to short term policies. One main disadvantage is that the coverage is not as comprehensive as most regular health insurance policies. This means that these policies often have higher deductibles than regular policies and may offer less coverage. This means that if a graduate were to have an accident, her or she would be required to pay higher out of pocket costs.

What If a Graduate Needs Health Insurance For More than a Year?

Because graduate health insurance is a short term plan, it can only be kept for up to one year. If after one year a graduate does not obtain health insurance through an employer, he or she will be forced to switch insurance providers. Fortunately, it is possible to obtain more than one short term health insurance policy, as long as it is through a separate insurance company.

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