Life is full of transitions. Leaving home for the first time, graduating from school, career changes and international travel represent a few of these life changing events. 

During this time, having a standard health insurance policy may be impractical or unaffordable. In these cases, purchasing short-term coverage is a great way to protect yourself--illness and injuries can happen when you're least prepared. 

How Short-Term Insurance Works
Short-term health insurance is one of the most affordable types of health insurance. These plans are designed to help people who find themselves with a temporary lapse between more permanent types of coverage. 

Length. The minimum length of time you can purchase coverage is 30 days. Traditionally, short-term policies maxed-out at 6 months. Today, you can purchase policies to cover a longer period, but don't count on finding one that will cover you for more than a year. 

Cost. Short-term policies can be found for less than $50 a month, but, you'll have a high deductible. More extensive coverage can be purchased, but of course, it will cost more. If you suffer a major illness or accident, financially speaking, you'll be much better off with whatever short-term structure you might select. 

Structure. These short-term policies may offer coverage under an indemnity, PPO or HMO structure with rates that vary depending upon your selection. 

Coverage. Temporary insurance won't cover preventive care or treatments for pre-existing conditions. Generally, they only offer catastrophic, major medical coverage--meaning emergency services, hospitalizations and follow-up treatments. To keep costs down, these plans don't offer the full scope of benefits that permanent plans do, such as wellness programs and visual care. Short-term plans can be extended to cover spouses and dependents. 

When is Short-Term Insurance a Good Choice?
There are a number of situations where short-term health insurance can be a smart idea. 

• Leaving Home. If you've previously been covered by your parents' insurance policy, you may or not be eligible to continue coverage when you move out of the house. If you're waiting to go to school or to find a job, short-term options are a smart idea.
  

• Students. Your school may not offer health care, or maybe the school clinic isn't that great. If you're going through a short program, or have less than a year left of school, short-term may be more affordable than traditional plans.
  

• After-graduation. Good way to get coverage for the swing period between graduating and finding a job.
  

• Waiting for Benefits to Kick-in. You have started a great new job, but aren't eligible for benefits yet. That doesn't mean you have to go without coverage.
  

• Between Jobs. If you've lost or left a job, short-term insurance can keep you covered until you find a new one. If your last company had 20 or more employees, COBRA legislation will let you temporarily continue the coverage you had, but it will probably cost you more than short-term.
  

• Entrepreneurs and Self-employed. Perhaps your business isn't at the point that you have the cash flow to afford a traditional plan. Short-term coverage is a possible solution.
  

• International Travel. Your standard insurance policy may not cover you when outside the country. In this case, you can find a short-term policy to protect you during your trip.
  

• Retirement. If you retire early, you may have to wait for other insurance benefits to kick-in.