Month-to-Month Health Insurance

by Jennifer Hench ; Updated July 27, 2017
Month-to-month health insurance is one option available to people in transition.

Month-to-month health insurance is a temporary health insurance option for people transitioning between jobs or long-term health insurance plans. This type of health insurance does not have a contract associated with it.

Significance

Month-to-month health insurance plans are temporary. This type of health insurance is best suited for people transitioning between jobs or careers, who are experiencing a lapse in health insurance coverage. The month-to-month plan means that the plan is not bound by a contract and the policyholder can cancel the plan at any time.

Considerations

Short-term, month-to-month health insurance plans are not suited for those nearing age 65 or for those that are pregnant or plan on becoming pregnant. This type of a plan is also not suited for someone with an extensive medical history or a preexisting condition that requires ongoing medical care. Short-term plans are not meant to be used a replacement for traditional health insurance, which is why there are strict limits regarding pregnancy, preexisting conditions and age.

Misconceptions

One misconception about month-to-month plans is that they are guaranteed policies. Though the criteria and qualifications are less extensive and strict than a traditional policy, you must have a physical or medical exam performed prior to being accepted into the policy. The other misconception is that these policies are automatically renewed every month. The plan can terminate your policy at the beginning of every month if they choose to do so.

Photo Credits

  • Doctor image by Monika 3 Steps Ahead from Fotolia.com