Short-term Health Insurance Policies-Nursing Paper Examples

Health insurance investment is vital to individuals and families due to the increased risk of sickness, injury, or death. Beik and Pepper (2020) observe that short-term health insurance policies offer temporary health coverage for shorter durations and a specific purpose. It entitles the nominees for the insurance policy to a specific amount of money when an unfortunate incident happens to the insured. The short-term insurance policy remain associated with risks and benefits, like long-term insurance policies.

However, it is suitable for self-employed individuals due to the absence of employer benefits and irregular income. Self-employment is highly susceptible to economic fluctuations like natural disasters or pandemics, which may derail the source of income in self-employment, making it challenging to pay for long-term insurance policies consistently (Rostamkalaei et al., 2022). In this case, it is suitable to buy short-term policies, whose benefits are payable upon maturity, allowing the individual to invest the benefits in other income-generating projects as they pursue stable income (Beik & Pepper, 2020). Thus, the short-term policy can help secure the financial future of the individual’s family in case of demise or another unfortunate incident like incapacitation.

In addition, short-term coverage is beneficial in unstable income flow among self-employed individuals since it attracts relatively lower premium costs than life insurance policies (Green, 2022). The policy attracts low costs based on the assured amount, and the policyholder can renew it upwards when their income increases. Regular payments in short-term policies can be reinvested to prevent the insurance scheme from collapsing, especially in low-income periods (Green, 2022).

Moreover, short-term health insurance policies attract income tax benefits, which reduces the tax burden for self-employed policyholders (Beik & Pepper, 2020). In this case, the health insurance plans remain deductible as medical expenses, whereby the policyholder can initiate out-of-pocket payments using pre-tax dollars. This enhances the affordability of short-term insurance among self-employed policyholders (Green, 2022). Thus, self-employed individuals with unstable incomes should leverage the low premium costs and reduced tax burden associated with short-term health insurance.

Furthermore, Beik and Pepper (2020) illustrate that short-term insurance policies offer death benefits to nominees in case of the policyholder’s death, enabling them to pay for expenses covered by the policyholder, like paying school fees for the individual’s children. Green (2022) observes that the nominees remain entitled to lumpsum payment or partial payment of the assured sum on an annual, quarterly, or monthly basis, depending on their preferences. Such payment plans enable the nominees to devise suitable financial plans as they transition through the policyholder’s loss.

Short-term benefits include add-ons that strengthen the insurance policy and allow the policyholders to enjoy maximum benefits. According to Eng (2022), Rider insurance policies can be attached to short-term insurance to cover disability or severe illness. More so, it remain advantageous for families with a history of severe illness. In this case, the coverage can be customized to meet the unique profile of the policyholder. Consequently, such as a specific illness, could cause financial difficulty to the family during an emergency illness.

Finally, short-term health insurance policies offer surrender benefits to the policyholder. Moreover, if they opt out before the maturity of the policy (Beik & Pepper, 2020). The policyholder can opt out of benefits, especially if they have financial difficulties meeting the premium obligations. Therefore, based on the identified benefits, it is appropriate to buy short-term health insurance policies. Furthermore, that are sustainable for self-employed individuals. The insurance policy remains aligned with the financial needs of the individual and can offer sufficient health coverage, including additional benefits under the rider scheme.

References

Beik, J. I. & Pepper, J. (2020). Health Insurance Today – E-Book. United States: Elsevier Health Sciences. ISBN: 9780323655545

Eng, T. (2022). Disability Insurance. In The Successful Health Care Professional’s Guide: Everything You Need to Know But Weren’t Taught in Training (pp. 109-116). Cham: Springer International Publishing. DOI: 10.1007/978-3-030-95950-0_10

Green, M. (2022). Understanding Health Insurance: A Guide to Billing and Reimbursement, 2022 Edition. United States: Cengage Learning. ISBN: 9780357621455

Rostamkalaei, A., Nitani, M., & Riding, A. (2022). Self-employment, financial knowledge, and retirement planning. Journal of Small Business Management, 60(1), 63-92. https://doi.org/10.1080/00472778.2019.1695497