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Individual Health

Using Short Term Medical Insurance to Bridge the Gap
By Mike Kuchar, Product Representative

• Between Jobs…
• Lower cost alternative to COBRA or State Continuation…
• Children ceasing to meet the definition of an eligible dependent on their parent’s policy…
• Waiting for Group Coverage to start…

All good reasons to consider a Short Term Medical (“STM”) policy!

Did you know that most carriers offering both STM and Permanent Major Medical coverage also offer a coordination feature if both products are purchased from the same carrier? We have all run into situations where a prospect is looking for alternatives to a costly COBRA premium and may be out of the job market for an extended period of time. The obvious solution is to recommend Permanent Major Medical coverage since Permanent Major Medical coverage requires full medical underwriting, which may create a gap in coverage while waiting for an underwriting decision.

Since most STM policies follow streamlined underwriting/policy issue, you can offer them coverage that can be bound as early as the next day. If taken in conjunction with a Permanent Major Medical plan with the same carrier asking for an ASAP effective date, the carrier will coordinate the plans effectively canceling the STM policy when the Permanent plan is approved and apply any unused STM premium towards the new Permanent policy.

Our agency can assist you in placing this business through BCBSIL or Assurant Health as both carriers offer this feature. Please give us a call for quotes or additional information.

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