Our Smalltown operation enjoys its own private parking lot for our clients and our staff. A second story was recently added to our office which will allow ample room for expansion. It is presently used for training, staff meetings, and conferences.
Acme Insurance is committed to providing professional sales and service for its insurance customers. We have established what we consider to be an excellent reputation in our area, and are the largest multi-line insurance broker in our trading area.
Acme Insurance provides home, automobile, and business insurance in Smalltown District. We take pride in knowing that for over 50 years we have helped our clients to find the best coverage at the right price that suits their needs and expectations. In the event of a claim, our clients know that we are there to provide help and counsel to ensure a fast, speedy claim settlement.
Like other independent brokers, we issue binders and new policies, endorsements and process renewals.
We also provide insurance services to non-clients, such as lawyers and mortgagees, to ensure our mutual clients have proper coverage and binding notes in place for the purchase of homes, businesses, and automobiles.
Since we are brokers, (not agents such as Co-operators), we have access to a range of standard and specialty markets.
We have recently produced a pamphlet titled “Insurance Partners” which stresses that a successful insurance partnership between the client, the broker, and the company is based upon a new concept.
Not only do the broker and the company take responsibility for proper protection and indemnity in the event of loss, but in the 1990’s, the client must also take his share of responsibility to insure the safety of his property by keeping it well maintained and using qualified professionals to update or change the heating, electrical, and plumbing systems in his home. We stress that multiple claims or claims arising out of poor maintenance may adversely affect his insurance.
In addition to the above, our brokerage uses a number of boilerplate letters on our computer system that are sent along with various types of policies explaining unique features or limitations in the contracts to avoid possible Errors and Omissions claims. They also encourage our clients to contact us about reviewing their coverage and promote other products and services we provide.
We call upon the ample resources of our insurance markets to help with any unusual situations which occur and may present a problem finding proper coverage for our client.
When we required trained inspectors for evaluating the safety of our insured’s solid fuel heating devices and installations, we sent one of our own producers for training and who now has W.E.T.T. certification.
We are proud that Acme Insurance Inc. has never had an errors and omissions loss, but to protect our clients against that possibility, we have in place Errors and Omissions Insurance through our Insurance Brokers Association in the amount of $1,000,000 (Employer’s Reinsurance).
We have been fully computerized since 1982 and both offices and some of our producer’s homes are connected to our main computer server located in Smalltown.
As of February 1996, we have entered into an agreement with our present computer vendor, Teleglobe, to update our computer system to a Pentium server, and to Release 74, which allows upload/download capability with our companies, as well as email.
We have elected to stay with the Teleglobe Tabs system since our staff is familiar with the program. It has exhibited excellent, reliable telecommunications ability. The high speed ISDN lines required for MS Windows-based communication between our branch office as well as our home offices are not available in our trading area, so at present we will not migrate to the new MS Windows-based products available from Teleglobe or Agency Manager.
Although Stan Smith started out as a life insurance agent, the “life” part of our business represents only 1% of our sales. We are looking to strengthen this part of our operation in the future. Due to the complexity and number of life and disability products, we are presently using an outside service: Atlantic-Smith Insurance out of North Town, although two of our general insurance producers have life agent licenses.
We are in the process of setting up a substandard property market. We feel that there is a need for this service and that it can be profitable if strictly underwritten with proper controls in place.
Recent demographic studies in our area reveal a total year-round population of approximately 13,000, which rises in the summer to approximately 25,000. We have a relatively high number of seniors and many younger, newly-formed families dependent on government assistance living mostly in a rural, unserviced, thinly populated area. This makes it costly to service our clients. Long distance phone bills represent our second largest expense (our two offices each have their own toll free phone numbers) and the cost of visiting our insureds to do home inspections is time consuming due to the large area we service.
We are targeting seniors which have proven to be a profitable, stable market for our brokerage in spite of our present difficult economy.
We are fortunate that we have not yet had the intrusion to a large degree of mass merchandising programs like “Silver Power.” Smaller brokers have made inroads into our traditional rural business, with low cost farm markets that sell home and auto insurance. We understand that some of these markets are in a poor financial position and may cease to be a factor in the future.
Our market consists of senior citizens, lower-income young families (many of who are on social assistance) and the small, family-run business (many of which are seasonal and based on the tourist trade). There are a few industrial risks and those that are located here are branches of larger industries which obtain their insurance through large brokers in Bigtown.
Our target market is the seniors, family business, and middle income earners in our area. Statistics show that over 42% of our permanent population is above 45 years of age. The average family income is approximately $27,000 and the unemployment rate 9%.
We are cautious about encouraging business from lower income prospects since they tend to have wood heat, homes in poor repair, and many attempt to install and repair their own plumbing, wiring, and heating systems.
Another market of concern is out-of-area clients who may have been payment or claim problems to local brokers and attempt to find a distant broker to provide coverage instead of making the necessary adjustments in their own lifestyle to prevent claims.
Clients who have moved repeatedly can be difficult to obtain proper underwriting information and past claims experience on, and we feel our staff is to be commended for their ability to properly assess if a client should be placed to our standard markets or would be better served by a specialty company.
Market Analysis | |||||||
1996 | 1997 | 1998 | 1999 | 2000 | |||
Potential Customers | Growth | CAGR | |||||
Ages 0 to 14 | 2% | 2,550 | 2,601 | 2,653 | 2,706 | 2,760 | 2.00% |
Ages 15 to 44 | 2% | 4,760 | 4,855 | 4,952 | 5,051 | 5,152 | 2.00% |
Ages 45 to 64 | 5% | 2,885 | 3,029 | 3,180 | 3,339 | 3,506 | 4.99% |
Ages 65 to 74 | 5% | 1,280 | 1,344 | 1,411 | 1,482 | 1,556 | 5.00% |
Other | 2% | 1,000 | 1,020 | 1,040 | 1,061 | 1,082 | 1.99% |
Total | 3.03% | 12,475 | 12,849 | 13,236 | 13,639 | 14,056 | 3.03% |
The past few years have seen tremendous upheaval in the insurance industry. The number of players has decreased in both the broker and company communities. The automobile product has, in the mind of the public, become unaffordable, unavailable, and impossible to understand. The recession has curtailed insureds from properly maintaining their homes and automobiles, and to exacerbate the situation, many clients have turned to wood heat and started doing their own repairs and maintenance which may have increased the number and severity of claims. Insurance fraud has become a major issue for the entire insurance industry.
Our traditional close relationship with our companies has been strained. Brokers are concerned that in spite of commission reductions, quotas, contract cancellations, and refusal to write new auto business by some markets, they now may find themselves in competition with some of the traditional broker distribution companies that are setting up direct marketing facilities and branches. The banks, even though thwarted by the federal government in its last budget to retail insurance from their premises, will continue pressure on the government and now have announced they will open stand alone insurance offices to retail insurance.
The new federal government is close to adopting a new automobile contract that hopefully will make it affordable, understandable, and available to our clients. A profitable automobile product will entice the companies to aggressively seek new sales and more brokers will see companies offering contracts.
Local independent brokers Cal Roberts, Patrick C. Johnson, Rob Champlain
Mass Markets
Our own Companies
Mass merchandise programs heavily advertised over the radio such as “Gray Power”
Group Plans – teachers, public employees
The main volume of income for our brokerage is generated by automobile premiums because they are relatively higher priced to insure than property, and because automobile insurance is mandatory in the region.
As stated previously, our success is dependent on our staff and our companies convincing our clients and prospective clients that price, although important, is not the only criteria for the purchase of insurance. Our advertising stresses that we have two offices, open six days a week with after-hours support and we have been an active, concerned, community involved, local business since 1938.
Still, price is very important and we must work with our markets to ensure that our insurance products are available and affordable to a large part of the market. It is the broker’s job to ensure the client understands what he is buying, and if circumstances dictate a lower-priced product, we must make our insured aware of the trade-off in coverage versus price.
Our trading area is rural. Premiums are relatively low and therefore not subject to large brokerages or specialty direct writers mounting aggressive advertising campaigns to bring in business. There are few group plans providing insurance coverage with the exception of our teachers. Smalltown has two independent brokers and a Co-Operators agent, Nexttown has two independent brokers, and Southtown has one. We have just started to see some move by locals to “Silver Power” and other specialty retailers who advertise on radio and television. The banks are still a future unknown.
We have depended in the past on a small advertisement in our local newspaper, listings in the Yellow Pages, and word of mouth. We must begin to investigate alternate ways to put our name in front of the public.
Our target market is Smalltown District. The ideal client is claims-free aged between 45 – 75 who owns his own home and car and is debt free. Has exhibited stable family patterns and is known and respected in the community.
A similar profile should be used for commercial prospects with emphasis placed on the well-run, profitable business that has exhibited good claims experience.
Our customers are especially sensitive to value. We must ensure that our price and service are perceived to be good value to our client.
Our markets must offer several payment options to our clients that are convenient to the client, not just to the company. Example – payment on insured’s preferred day of month, not on the company’s, and accepting payment by credit or debit card. Many insureds are on a fixed income and receive their income on a set day of each month or a paycheck on a particular day.
We encourage our companies to “Target Market.” Many of our companies are now focusing on what they have perceived to be profitable niche markets, where they can offer a competitive product with little, if any, competition.
We are seeing our commercial markets now moving toward basic coverage and limiting the “bells and whistles,” all-risk products available to only those clients who have modern, well-managed, profitable, low-risk operations. This should help stabilize pricing and, even more important, ensure that there is an insurance market available for most risks. Continued insistence by the industry on better protection, i.e. fire and burglar alarms, upgrading of buildings, etc., have started to lower loss ratios.
Many of the larger insurance markets have increased minimum premiums to $1,000 for any commercial package policy. Our Lloyds market should be able to accommodate these customers with a minimum premium of approximately $600.
We want to emphasize the benefit of dealing with professionals who live and work in our client’s area. We know their needs and their problems and we have a local reputation to protect, unlike an out-of-town market. If the out-of-town broker fails to provide proper cover or advice, they lose one client. We could stand to lose many if the public perceives a professional failure on our part.
Competitive prices for our identified target markets. Discounts of up to 25% for claims-free seniors who renew their home insurance with us.
Careful inspection and the judicious use of deductibles and warranties for insureds using wood stoves should help alleviate company concerns about solid fuel heating devices. Competitive pricing is not an important factor to attract business because competition is very limited for primary wood heat houses in our area. This may provide a chance to pick up all of the insured’s business because, in many instances, they contact us after being told by their previous broker that, in spite of their claims-free status, the broker doesn’t want their house insurance.
Business partners provide us the opportunity to sell lower-priced, basic insurance coverage to our client. Many clients have expressed interest in retaining part or all of the insurance risk, especially for burglary. They feel that if they have installed central alarms and bars, they can take the chance of self insurance.
We are investigating sales incentives for our producers. They must encourage profitable new business and have a retention component. Presently, our producers receive $10 for every new policy written in our office, with the exception of recreational vehicles.
The following table and related charts show our present sales forecast. We are projecting sales to grow at a moderate but steady pace for the coming year and to continue into 1997.
Sales Forecast | |||
1996 | 1997 | 1998 | |
Sales | |||
Sales | $677,600 | $700,000 | $750,000 |
Other | $0 | $0 | $0 |
Total Sales | $677,600 | $700,000 | $750,000 |
Direct Cost of Sales | 1996 | 1997 | 1998 |
Sales | $0 | $0 | $0 |
Other | $0 | $0 | $0 |
Subtotal Direct Cost of Sales | $0 | $0 | $0 |
Some of our present companies have surveyed us to investigate co-operative advertising but we have not committed to any programs at present.
Acme Insurance is really a group of small brokerages housed under one name and location. Our producers are each responsible for a book of business. They sell, service, handle claims and are responsible for their accounts receivable. We have found over the years that our clients prefer to deal with one broker who is aware of their particular needs.
We have listed our plan milestones in the table below.
Milestones | |||||
Milestone | Start Date | End Date | Budget | Manager | Department |
Select Seniors | 1/1/1996 | 12/31/1996 | $0 | P. Smith | Sales |
Broker Acquisition Course | 4/17/1996 | 9/9/1996 | $250 | P. Smith | Finance |
Company Contacts | 1/3/1996 | 12/31/1996 | $1,000 | P. Smith | Marketing |
Install Release 74 | 4/8/1996 | 7/8/1996 | $0 | J. Smith | Staff |
Release 74 Training | 4/2/1996 | 8/2/1996 | $300 | Staff | Staff |
Jason – CAIB Course 2 | 5/4/1996 | 6/24/1996 | $395 | J. Smith | Staff |
Upload/download Training | 1/7/1996 | 3/1/1996 | $1,000 | J. Smith | Staff |
Stephen – Remove Restriction | 1/9/1996 | 1/10/1996 | $400 | Staff | Staff |
Mandatory Staff – 3hr | 1/10/1996 | 1/10/1996 | $1,000 | P. Smith | Management |
Totals | $4,345 |
Management summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">.
Acme Insurance is slow to hire new people and loyal to those whom we have hired. We hire only when there is a vacancy or growth dictates more staff. Most of our people have been in our organization over 15 years, which allows our clients and our companies to form long lasting business relationships with their broker.
Our brokerage is divided by client instead of service. Each broker is responsible not only to renew and service a client’s insurance, they also are responsible for collection and claims. We feel a client wants to deal with his or her broker, especially in a claim situation, instead of an unknown “specialist” whom they feel does not represent their interests.
Sales Forecast | |||||||||||||
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
Sales | |||||||||||||
Sales | 0% | $54,000 | $28,500 | $44,500 | $45,000 | $57,000 | $65,000 | $67,000 | $65,000 | $70,000 | $80,000 | $55,000 | $46,600 |
Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Sales | $54,000 | $28,500 | $44,500 | $45,000 | $57,000 | $65,000 | $67,000 | $65,000 | $70,000 | $80,000 | $55,000 | $46,600 | |
Direct Cost of Sales | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Direct Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Personnel Plan | |||||||||||||
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
Name or Title or Group | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Name or Title or Group | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Name or Title or Group | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total People | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Total Payroll | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Pro Forma Profit and Loss | |||||||||||||
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
Sales | $54,000 | $28,500 | $44,500 | $45,000 | $57,000 | $65,000 | $67,000 | $65,000 | $70,000 | $80,000 | $55,000 | $46,600 | |
Direct Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Costs of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Gross Margin | $54,000 | $28,500 | $44,500 | $45,000 | $57,000 | $65,000 | $67,000 | $65,000 | $70,000 | $80,000 | $55,000 | $46,600 | |
Gross Margin % | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | |
Expenses | |||||||||||||
Payroll | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Marketing/Promotion | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Rent | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Utilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Insurance | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Payroll Taxes | 15% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Profit Before Interest and Taxes | $54,000 | $28,500 | $44,500 | $45,000 | $57,000 | $65,000 | $67,000 | $65,000 | $70,000 | $80,000 | $55,000 | $46,600 | |
EBITDA | $54,000 | $28,500 | $44,500 | $45,000 | $57,000 | $65,000 | $67,000 | $65,000 | $70,000 | $80,000 | $55,000 | $46,600 | |
Interest Expense | $3,767 | $3,767 | $3,767 | $3,767 | $3,767 | $3,767 | $3,767 | $3,767 | $3,767 | $3,767 | $3,767 | $3,767 | |
Taxes Incurred | $15,070 | $7,420 | $12,220 | $12,370 | $15,970 | $18,370 | $18,970 | $18,370 | $19,870 | $22,870 | $15,370 | $12,850 | |
Net Profit | $35,163 | $17,313 | $28,513 | $28,863 | $37,263 | $42,863 | $44,263 | $42,863 | $46,363 | $53,363 | $35,863 | $29,983 | |
Net Profit/Sales | 65.12% | 60.75% | 64.07% | 64.14% | 65.37% | 65.94% | 66.06% | 65.94% | 66.23% | 66.70% | 65.21% | 64.34% |
Pro Forma Cash Flow | |||||||||||||
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $13,500 | $7,125 | $11,125 | $11,250 | $14,250 | $16,250 | $16,750 | $16,250 | $17,500 | $20,000 | $13,750 | $11,650 | |
Cash from Receivables | $127,970 | $129,320 | $39,863 | $21,775 | $33,388 | $34,050 | $42,950 | $48,800 | $50,200 | $48,875 | $52,750 | $59,375 | |
Subtotal Cash from Operations | $141,470 | $136,445 | $50,988 | $33,025 | $47,638 | $50,300 | $59,700 | $65,050 | $67,700 | $68,875 | $66,500 | $71,025 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $141,470 | $136,445 | $50,988 | $33,025 | $47,638 | $50,300 | $59,700 | $65,050 | $67,700 | $68,875 | $66,500 | $71,025 | |
Expenditures | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
Expenditures from Operations | |||||||||||||
Cash Spending | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Bill Payments | $336,628 | $18,582 | $11,347 | $15,992 | $16,257 | $19,817 | $22,157 | $22,717 | $22,187 | $23,737 | $26,387 | $19,053 | |
Subtotal Spent on Operations | $336,628 | $18,582 | $11,347 | $15,992 | $16,257 | $19,817 | $22,157 | $22,717 | $22,187 | $23,737 | $26,387 | $19,053 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $336,628 | $18,582 | $11,347 | $15,992 | $16,257 | $19,817 | $22,157 | $22,717 | $22,187 | $23,737 | $26,387 | $19,053 | |
Net Cash Flow | ($195,158) | $117,863 | $39,641 | $17,033 | $31,381 | $30,483 | $37,543 | $42,333 | $45,513 | $45,138 | $40,113 | $51,972 | |
Cash Balance | $207,482 | $325,345 | $364,986 | $382,019 | $413,400 | $443,883 | $481,426 | $523,759 | $569,272 | $614,410 | $654,523 | $706,495 |
Pro Forma Balance Sheet | |||||||||||||
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $402,640 | $207,482 | $325,345 | $364,986 | $382,019 | $413,400 | $443,883 | $481,426 | $523,759 | $569,272 | $614,410 | $654,523 | $706,495 |
Accounts Receivable | $255,940 | $168,470 | $60,525 | $54,038 | $66,013 | $75,375 | $90,075 | $97,375 | $97,325 | $99,625 | $110,750 | $99,250 | $74,825 |
Other Current Assets | $309,137 | $309,137 | $309,137 | $309,137 | $309,137 | $309,137 | $309,137 | $309,137 | $309,137 | $309,137 | $309,137 | $309,137 | $309,137 |
Total Current Assets | $967,717 | $685,089 | $695,007 | $728,160 | $757,168 | $797,912 | $843,095 | $887,938 | $930,221 | $978,034 | $1,034,297 | $1,062,910 | $1,090,457 |
Long-term Assets | |||||||||||||
Long-term Assets | $465,575 | $465,575 | $465,575 | $465,575 | $465,575 | $465,575 | $465,575 | $465,575 | $465,575 | $465,575 | $465,575 | $465,575 | $465,575 |
Accumulated Depreciation | $181,651 | $181,651 | $181,651 | $181,651 | $181,651 | $181,651 | $181,651 | $181,651 | $181,651 | $181,651 | $181,651 | $181,651 | $181,651 |
Total Long-term Assets | $283,924 | $283,924 | $283,924 | $283,924 | $283,924 | $283,924 | $283,924 | $283,924 | $283,924 | $283,924 | $283,924 | $283,924 | $283,924 |
Total Assets | $1,251,641 | $969,013 | $978,931 | $1,012,084 | $1,041,092 | $1,081,836 | $1,127,019 | $1,171,862 | $1,214,145 | $1,261,958 | $1,318,221 | $1,346,834 | $1,374,381 |
Liabilities and Capital | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
Current Liabilities | |||||||||||||
Accounts Payable | $336,000 | $18,209 | $10,814 | $15,454 | $15,599 | $19,079 | $21,399 | $21,979 | $21,399 | $22,849 | $25,749 | $18,499 | $16,063 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $100,362 | $100,362 | $100,362 | $100,362 | $100,362 | $100,362 | $100,362 | $100,362 | $100,362 | $100,362 | $100,362 | $100,362 | $100,362 |
Subtotal Current Liabilities | $436,362 | $118,571 | $111,176 | $115,816 | $115,961 | $119,441 | $121,761 | $122,341 | $121,761 | $123,211 | $126,111 | $118,861 | $116,425 |
Long-term Liabilities | $452,036 | $452,036 | $452,036 | $452,036 | $452,036 | $452,036 | $452,036 | $452,036 | $452,036 | $452,036 | $452,036 | $452,036 | $452,036 |
Total Liabilities | $888,398 | $570,607 | $563,212 | $567,852 | $567,997 | $571,477 | $573,797 | $574,377 | $573,797 | $575,247 | $578,147 | $570,897 | $568,461 |
Paid-in Capital | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 |
Retained Earnings | $88,096 | $363,143 | $363,143 | $363,143 | $363,143 | $363,143 | $363,143 | $363,143 | $363,143 | $363,143 | $363,143 | $363,143 | $363,143 |
Earnings | $275,047 | $35,163 | $52,476 | $80,989 | $109,852 | $147,116 | $189,979 | $234,242 | $277,105 | $323,468 | $376,831 | $412,694 | $442,677 |
Total Capital | $363,243 | $398,406 | $415,719 | $444,232 | $473,095 | $510,359 | $553,222 | $597,485 | $640,348 | $686,711 | $740,074 | $775,937 | $805,920 |
Total Liabilities and Capital | $1,251,641 | $969,013 | $978,931 | $1,012,084 | $1,041,092 | $1,081,836 | $1,127,019 | $1,171,862 | $1,214,145 | $1,261,958 | $1,318,221 | $1,346,834 | $1,374,381 |
Net Worth | $363,243 | $398,406 | $415,719 | $444,232 | $473,095 | $510,359 | $553,222 | $597,485 | $640,348 | $686,711 | $740,074 | $775,937 | $805,920 |
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Considering short-term health insurance? These plans are not created equal. We analyzed more than 3,000 data points to help you find the best option. Best overall company for short-term health insurance: UnitedHealthcare. Runner-up: National General Accident & Health
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CEO, Umbra Health Advocacy
Deb Gordon, the co-founder and CEO of Umbra Health Advocacy, has held executive roles in health insurance and health care technology services. She authored a book titled “The Health Care Consumer’s Manifesto,” based on her research as a senior fellow at Harvard Kennedy School’s Mossavar-Rahmani Center for Business and Government. Her works have been published on JAMA Network Open, Harvard Business Review blog, USA Today and RealClear Politics, among others. Gordon is an Aspen Institute Health Innovators Fellow and an Eisenhower Fellow. She was a 2011 Boston Business Journal 40 Under 40 honoree and a volunteer at MIT’s Delta V start-up accelerator, the Fierce Healthcare Innovation Awards. She earned her bioethics degree from Brown University and her MBA with distinction from Harvard Business School.
Updated: May 22, 2024
Advertising & Editorial Disclosure
UnitedHealthcare earned MoneyGeek’s top ranking among short-term health insurance plans for having the most plans, more coverage for the cost, lower deductibles, low coinsurance and low out-of-pocket limits. Most of UnitedHealthcare's short-term plans cover prescription drugs.
National General Accident & Health was MoneyGeek’s runner-up because of its relatively good coverage-to-cost ratios and low application fees. It offers a lot of options with a range of out-of-pocket cost limits, increasing the chances you might find a plan that works for you.
Other companies do well on specific dimensions, offering decent options depending on the features that matter most to you.
Short-term health insurance is designed to cover temporary gaps in coverage, typically for one year or less though it can last longer. It does not provide comprehensive coverage or long-term financial protection for many health needs. Short-term plans don’t have to include essential health benefits or protections for people with preexisting conditions required in Affordable Care Act-compliant plans.
If you think short-term plans are a good way to save money on health insurance, think again. You might be able to get better coverage for less with expanded subsidies on Healthcare.gov or your state’s health insurance marketplace.
If you need temporary coverage, it’s smart to know what you’re getting when you buy a short-term plan.
Ensure you are getting the best rate for your insurance. Compare quotes from the top insurance companies.
MoneyGeek’s picks for the best short-term health insurance plans are UnitedHealthcare and National General Accident & Health. Monthly premiums for UnitedHealthcare’s short-term plans range from $21.18 per month to $659.96. That range for National General Accident & Health is higher, ranging from $35.57 to $872.90.
Offers the most short-term plan options
Most plans offer generic drug coverage
Out-of-network coverage
Highest application fee
Highest maximum out-of-pocket limit
Offers the most expensive plan
UnitedHealthcare offers a wide range of short-term plan options, making it more likely you’ll find one that works for you. Plans with low out-of-pocket limits, low or no coinsurance and low deductibles are available. Deductibles range from $1,000 to $15,000. UnitedHealthcare offers a wide range of options to suit different needs, form the cheapest and the most expensive.
Highest available coverage limit
Available in most states
Low out-of-pocket maximums
Longest general waiting period
Some plans have high out-of-pocket limits and deductibles
Cheaper plans generally not worth the cost
National General Accident & Health offers low coinsurance, low application fees, out-of-network coverage and several plans with generic prescription drug coverage. But many of the company’s cheaper options are not worth the money. On the other hand, its higher-end plans are among the best value for the cost. There’s only one short-term plan type, longer wait times and some plans with higher out-of-pocket costs.
National General Accident & Health performed the best in a state-level analysis of local health insurance providers. MoneyGeek collected pricing, plan options and cost sharing choices, then compiled profiles to compare companies.
Check your state to learn more about our analysis and to see more options for plans that fit your needs.
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Health insurance comes in many different flavors — or plan types. Each has benefits and drawbacks. It’s important to understand the options to figure out what best fits your needs.
HMO health plans : Health Maintenance Organization plans (HMOs) offer comprehensive coverage, but you have to get care from a set network of health care providers. You’ll have to pick a primary care provider (PCP) who is like a gatekeeper for any other care that you need. If you need to go to a doctor or hospital outside that network, you’ll need a referral, and you may have to pay more. You may save money in exchange for these restrictions.
PPO health plans : Preferred Provider Organization plans (PPOs) are generally more flexible than HMOs, allowing you to see any health care provider in the health plan network without a referral, which means you don’t need permission to see a specialist, for example. You may pay more for this flexibility.
EPO health plans : Exclusive Provider Organization plans (EPOs) require you to see specific providers. There are generally no out-of-network benefits. You could save significantly on monthly premiums by agreeing to see only a more limited set of providers.
Indemnity health plans : Indemnity plans, sometimes called “fee-for-service” plans, offer you the most freedom to see almost any doctor or hospital without a referral. You don’t have to go through a PCP. Under these plans, you get to decide where to get care. These plans can be costly because there are so few restrictions, and providers do not necessarily agree to accept discounted rates from the insurer.
Network health plans : Network health plans are like PPO plans in that they create a network of health care providers that you can see. These providers agree to provide services to health plan members at discounted negotiated rates.
Independence American Insurance Company offers 30 different plans and six term length options, earning it the top spot for Most Customizable. Its lowest deductible is $2,500 and its highest is $10,000. Monthly premiums range from $67.12 to $1,029.34.
Most plan options
Various term lengths to choose from
No waiting period or application fees
Not all plans offer out-of-network coverage
Though many plan options, only one plan type
Maximum out-of-pocket spending can be high
Independence American Insurance Company offers many term lengths. However, the shortest is six months, which may be longer than you need. With no waiting periods, no application fees and the cheapest plans for up to $2 million in coverage, these plans are more easily accessible than others. About half the plans offer generic prescription drug coverage.
It’s impossible to predict all your future health needs, so choosing the best health insurance company for you can be hard. But making an educated guess about how much health coverage you’re likely to need and for how long can help. For example, if you know you’re starting a new job in a few months, short-term health insurance can give you peace of mind in that gap. But if you’re on a job search and unsure when it will end, choosing the wrong short-term plan could leave you exposed if that search lasts longer than you expect.
National General Accident & Health has some of the better options for “at-risk” people — those who are likely to use their health insurance due to complex health issues — because they offer some of the highest coverage limits. Monthly premiums range from $35.57 to $872.90. But plan deductibles range from $2,500 to a whopping $25,000.
Low out-of-pocket spending limits in some plans
Low coinsurance
High out-of-pocket spending limits and deductibles on some plans
Cheapest plans not worth it
With low out-of-pocket spending limits, low coinsurance and high levels of coverage, National General Accident & Health offers some great options, especially for people with complex health needs. But beware of astronomical (up to $25,000) deductibles, which could mean you’re paying a ton out of pocket if you need services.
If you’re likely to need more health care — if you have a chronic condition or a complex health history, for example, it’s important not to go without health coverage. It could cost you a bundle if you need services while you’re uninsured. Short-term health insurance can ensure you have at least some coverage but it’s smart to check your options. You may get better coverage for less money (or not that much more) with subsidies on Healthcare.gov and the state health insurance marketplaces.
Everest Reinsurance Company earned MoneyGeek’s pick for best short-term health insurance company for students and people who are in between jobs because it generally has low premiums and out-of-pocket spending limits, but still offers decent coverage. Monthly premiums range from $76.15 to $641.03, with deductibles ranging from $1,000 to $10,000.
Lowest out-of-pocket spending limits
Decent coverage for the cost
Short general waiting period
Available in the fewest number of states
Long waiting period for people with cancer
No generic prescription drug coverage
With plans ranging from three months to a year in length, Everest Reinsurance company offers good options for students or others with short-term coverage needs, like people who are in between jobs. Its plans provide out-of-network coverage, low out-of-pocket limits, low deductibles and good coverage for the cost. Often, plans with low out-of-pocket limits and coinsurance cost more in terms of monthly premiums and annual deductibles. Everest Reinsurance Company offers a good balance for people on a budget because the out-of-pocket and coinsurance costs are low, but premiums aren’t necessarily more expensive.
If you’re unemployed, health insurance may feel out of reach. Short-term health insurance may be tempting because it can seem cheaper than buying coverage. But it may not be your best value, because there are so many ways to get health insurance even without a job or income. Check out all your options; you may be able to get better coverage for less by shopping around.
It’s wise not to go globetrotting, or even across state lines, without health insurance. If you get sick or injured on the road, it could cost you. If you need short-term coverage while traveling, Everest Reinsurance Company may offer the right plans for you. Monthly premiums range from $76.15 to $641.03.
Indemnity plan lets you get care almost anywhere
Low out-of-pocket limits and deductibles
Term lengths as short as three months
Available in fewest states
Only one short-term plan type available
With a short general waiting period and terms as short as three months, Everest Reinsurance Company plans can be great options for travelers. Out-of-network coverage and the indemnity plan design give travelers the flexibility to get care when they’re away from home.
If you take medications, it can be crucial to have health insurance. Even generic drugs can be expensive if you have to pay for them in cash. But you’ll want to make sure your insurance covers your prescriptions.
UnitedHealthcare was our pick for the best short-term health insurance company for generic prescription drug coverage because most of its short-term plans offer this coverage. Monthly premiums range from $21.15 to $659.96.
Most plans include generic drug coverage
Many options for plan types, term lengths and out-of-pocket spending limits
Highest out-of-pocket spending limits
Most expensive short-term plan on the market
UnitedHealthcare , MoneyGeek’s pick for best overall short-term health insurance company, also wins for best generic drug coverage because most of its plans offer generic prescription drug coverage. Its plans also provide decent value, with the most low-cost plans that are actually worth the money. With deductibles from $1,000 to $15,000 and low out-of-pocket spending limits, some UnitedHealthcare plans are relatively inexpensive.
To get short-term health insurance, you often have to pay an application fee. These fees range from $0 to $40. Independence American Insurance Company is the best option for short-term coverage without an application fee. Monthly premiums range from $67.12 to $1,029.34.
No application fees
No waiting period
Many plan options
Shortest plan term is six months, which may be too long for some customers
Many plan options but only one plan type
Out-of-network coverage not available on all plans
If you don’t want to pay a fee to get short-term coverage, Independence Insurance Company offers the best options. Plans offering up to $2 million in coverage are relatively cheap and about half the plans include generic prescription drug coverage.
Application fees can be as high as $35 or $40 — more than the monthly premium for some plans. If you’re looking for short-term coverage, adding a whole month’s worth of expense or more may not make sense. Independence American Insurance Company saves you that extra cost, though its plans start at six-month terms.
Short-term health insurance plans aren’t right for everyone. They don’t tend to cover very much and they can be pricey. But, if you have a temporary gap in coverage and no other options, they can help you avoid being exposed financially if you need health care services.
Finding the best short-term plan can be overwhelming, but we’ve outlined the key steps you can follow, from assessing your needs to comparing options based on the criteria that matter most to you.
Short-term plans can last anywhere from three months to three years. If you know how long your coverage gap will last, like if you’re starting school or a new job at a particular time, you can choose the right plan duration. If you’re unsure, you may want to err on the side of longer coverage so you don’t get caught uninsured.
Remember that short-term health insurance is designed for temporary needs. If your gap in coverage could stretch longer than a few months or you don’t know how long it may be, it could be better to explore Marketplace plans.
Short-term health insurance companies aren’t required to offer all the essential health benefits covered by Affordable Care Act-compliant plans. Make sure you know what is covered in any plan you’re considering. If you know you have specific needs, such as a particular medication or access to a type of specialist, pay close attention to what those things will cost you on each plan. Narrow down your choices to plans that cover what you know you’ll need. If you have a complex medical history or a high risk of needing care, consider more comprehensive coverage, because you could spend a lot out-of-pocket on a short-term plan.
Not all plans cover you when you’re away from home. If you travel a lot or have upcoming travel plans, you’ll want to find a plan with out-of-network coverage. Indemnity plans are likely to offer you the most flexibility to see health care providers wherever you may be. On the other hand, you may want to avoid HMOs, EPOs or network plans, which restrict you to specific providers contracted with the plan. Those may look cheaper, but if you need services outside the network, it’s likely to be much more expensive if it’s covered at all.
A good rule of thumb is to spend about 10% of your income on health insurance. That may not be realistic, depending on where you live, because monthly health insurance costs can vary widely by state. When you’re thinking about what you can afford to spend on health insurance, don’t just look at the monthly premium. Consider the annual deductible (the amount you’ll have to pay out-of-pocket before the insurance kicks in) and other costs such as copayments and coinsurance (the percent of medical bills) that you’ll have to pay until you reach your out-of-pocket maximum or spending limit. Also, think about what you’re getting for your money. MoneyGeek’s ratings consider the coverage-to-cost ratio or the value of the coverage you’re getting with each plan.
If you have savings and no major health risks or conditions, you may be safe opting for a lower premium and higher deductible plan. But if you would struggle with huge out-of-pocket responsibilities, paying a bit more each month to know you’re covered may be worthwhile.
Health insurance that seems cheaper because of low premiums can cost you more if it doesn’t cover what you need. With expanded subsidies available on the health insurance marketplace, you may be able to spend less for better coverage.
Feeling overwhelmed? Start with whatever’s most important to you, such as the monthly cost or coverage for a specific drug, service or coverage when you’re away from home. Narrow down your search based on your needs and preferences and start with options that fit your criteria.
Short-term health insurance is designed for people who need to fill temporary gaps in coverage. For example, if you graduate from college and know you’re starting a job with benefits in a few months, short-term insurance may be a good low-cost option. Or, you may have started a job but have to get through a waiting period for benefits to kick in. Only go this route if you’re generally healthy with few health risks.
Short-term insurance is not ideal for people who are uninsured for longer periods or who have more serious health care needs. These plans aren’t required to cover things that other health insurance must include, such as maternity care or coverage for preexisting conditions.
If you suddenly find yourself without a job or health insurance coverage, and you can’t afford COBRA (which lets you keep your employer’s health insurance but requires you to pay the full cost), short-term health insurance could be a way to make sure you’re covered while you figure out a longer-term solution.
If you have a defined gap in coverage, such as after you graduate from college or graduate school but before you start a job, short-term insurance can be a relatively quick and inexpensive way to protect yourself.
Short-term health insurance may be a good option if you’ve got a job with benefits but you need to wait until you’re eligible for them. In this case, you know you’re going to be covered and can plan for that specific period.
Not sure if short-term health insurance is right for you? Overwhelmed by the options? See our frequently asked questions (FAQs) to help you get started.
MoneyGeek identified UnitedHealthcare as the best overall short-term health insurance company. It offers a wide range of options and is available in many places. Most of its plans offer generic prescription drug coverage, which some companies do not.
National General Accident & Health is MoneyGeek’s pick for runner-up overall because it offers plans with low coinsurance, low application fees, plus out-of-network coverage and several plans with generic prescription drug coverage. Its higher-end plans are among the best value for what you pay.
Short-term health insurance is sometimes called “skinny coverage” because it doesn’t cover the same comprehensive set of services required in other insurance. It may cover emergency room visits and some prescription drugs and doctor visits, but it generally doesn’t cover preexisting conditions, maternity care or mental health. It’s meant to be gap coverage used in short, defined periods for people who don’t have complex health care needs.
Like any health insurance, short-term plans include a range of factors to consider: monthly costs (premiums), deductibles, coinsurance and coverage options are among them. Think about what matters most to you. Is it the amount you’ll spend each month or how much you might have to pay if you use health care services? Do you care about where you can get care or how much bureaucracy you have to go through? Do you take a specific medication or see a particular provider? Filter the options by these criteria, and you’ll be able to narrow down your search.
Monthly premiums cost anywhere from about $20 per month to more than $1,000. But don’t just look at monthly premiums when considering how much a plan may cost. Look at the deductible, copayments, coinsurance and out-of-pocket spending limits, because those will give you a better sense of your total financial exposure. Also, look at coverage limits because anything beyond those will be on your dime.
To determine the best short-term health insurance companies, MoneyGeek analyzed more than 3,000 short-term health insurance plans from various companies across America, rating each company’s product offering based on the number of options, state availability, coverage-to-cost ratio, and more.
About Deb Gordon
Deb Gordon, the co-founder and CEO of Umbra Health Advocacy, has held executive roles in health insurance and health care technology services. She authored a book titled “The Health Care Consumer’s Manifesto,” based on her research as a senior fellow at Harvard Kennedy School’s Mossavar-Rahmani Center for Business and Government. Her works have been published on JAMA Network Open, Harvard Business Review blog, USA Today and RealClear Politics, among others.
Gordon is an Aspen Institute Health Innovators Fellow and an Eisenhower Fellow. She was a 2011 Boston Business Journal 40 Under 40 honoree and a volunteer at MIT’s Delta V start-up accelerator, the Fierce Healthcare Innovation Awards. She earned her bioethics degree from Brown University and her MBA with distinction from Harvard Business School.
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The annual period known as open enrollment, when you can sign up for health insurance plans that fall under the Affordable Care Act (ACA), is just around the corner. In fact, the 2020 open enrollment period runs from Friday, November 1 to Sunday, December 15, 2019.
But there’s another choice, known as short-term limited duration health insurance (STLD), that offers some consumers an affordable, temporary, limited health coverage option.
Short-term health plans are a temporary option that can provide a certain set of consumers with affordable, albeit limited, coverage while they find a more comprehensive plan. But be cautious; these short-term health plans don’t comply with the ACA’s coverage mandates.
Short-term plans generally do not cover pre-existing conditions and often exclude or severely limit the minimum essential benefits that ACA-compliant plans are required to provide. Maternity care, preventive care, mental health, prescription drugs, and substance use treatment are often not covered by short-term health plans. STLD plans can also impose lifetime and annual dollar limits for certain medical services and raise premium prices based on pre-existing conditions. As a result, they are not recognized as comprehensive traditional health insurance according to federal standards.
Unlike the ACA, which has a specific enrollment period, you can sign up for a short-term plan throughout the year. Recent federal regulations allow plans to be sold with terms of up to 364 days, with option to renew for 36 months. When comparing prices with regular health insurance, you could be saving more than $100 per month on insurance compared to marketplace options – but there’s a catch.
While premiums may be lower, short-term regulations are so lax in some states that their significant limitations could put consumers at serious financial and medical risk.
Things to watch out for include:
While it’s true that you may save money by choosing a short-term health insurance plan, you could end up having more out-of-pocket expenses in the long run.
After discussion with various experts and evaluating multiple concerns of organizations such as the American Medical Association, the National Alliance for Mental Illness, the American Academy of Pediatrics, and others, we at ConsumersAdvocate.org advise caution when purchasing short-term limited duration health insurance plans. While it’s up to you to determine if a short-term insurance policy meets your needs, it’s important to understand what you are purchasing before you make a decision. If you’re looking for a comprehensive health plan, this is not the option for you.
Short-term health insurance is not required to comply with certain federal market requirements for health insurance, mainly those mandated by the Affordable Care Act. We recommend that you check your policy carefully and be aware of any exclusions or limitations regarding coverage of pre-existing conditions or health benefits (such as emergency services, mental health care, maternity care, prescription drug, hospitalization, emergency care, and substance abuse disorder services).
You should be aware that the health insurance companies we recommend are currently under investigation by the House Committee on Energy & Commerce. As part of the probe, the Committee is evaluating whether the business model, regulation, and/or bad faith practices of STLD providers could put consumers at financial and medical risk. The investigation by Congress does not necessarily mean that these companies have done anything criminal or unethical. Rather, the key issue before the Committee is whether new federal laws and oversight are needed.
We found the companies discussed below to be the best among the companies we vetted for their policy clarity and their user-friendly platforms.
When looking for a short-term health plan, you have to consider a variety of factors including premiums rates, coverage, exclusions, co-pays, deductibles, caps, and provider restrictions among other variables. Unfortunately, many health insurance companies make it difficult to understand exactly what their plans offer.
When looking for temporary coverage, most consumers’ number one goal is finding an affordable option. The good news is that STLD plans generally have lower premiums than marketplace options. However, while STLD plans are cheaper than other traditional forms of health insurance, there are other costs to consider such as uninsured medical costs and out-of-pocket expenses.
Screenshot of agilehealthinsurance.com 10/22/2019
We determined that Agile Health Insurance offers the broadest array of premium rates and coverage packages. Agile’s easy-to-use website and straightforward breakdown of each short-term policy ultimately makes the company our top choice for the resources that enable consumers to intelligently compare all the variables and features of STLD policies
Agile Highlights
Agile Health Insurance offers over 5,000 short-term insurance and health benefit indemnity insurance plans. They also offer supplemental health products such as dental insurance, vision insurance, and telemedicine for an additional cost.
According to Agile’s database, the most common non-insurance supplemental health product consumers get is telemedicine. This product facilitates 24/7 access to medical providers and insurance advocacy services that help you better utilize your health plan and discount pharmacy benefits.
When you enter your zip code, date of birth, gender and payment preference (monthly or single up-front), Agile generates a number of quotes for plans that are available in your location.
Once you view the available quotes in your area, Agile allows you to select premium and deductible preferences from multiple health insurance policies including Everest, Everest Prime, Aspen, Advant Health, LifeShield, Standard Life, Companion Life, National General, and United Healthcare. Each provider is well-known in the insurance industry and offers large networks of medical providers, which we liked.
The online application takes around five minutes and can be approved in as little as eight minutes, according to Agile. If approved, you can begin accessing some of your benefits as early as the next day.
We advise you to be aware of your policy terms before using your short-term plan, as certain coverage or services could be excluded or have specific waiting periods and limitations. For example, most short-term plans have a five day waiting period for illnesses. Furthermore, pre-existing conditions will not be covered.
Short-term health insurance doesn’t comply with Affordable Care Act federal rules, so it doesn’t include all of the ten essential health benefits. Be sure to determine whether the policy you’re considering includes all the coverage you need; short-term plan aren’t for everyone.
Some policies provide mental health and substance use treatment and others don’t, so if you think you might need these coverages here are your options.
Short-term plan | Mental Health Coverage | Substance Use Treatment Coverage | Other |
Aspen | No coverage | No coverage | No essential health benefits |
Advant Health | No coverage | No coverage | Provides limited therapy services |
LifeShield | Yes, limited | Yes, limited | No |
Standard Life Select | Yes, limited | No coverage | No |
National General | No coverage | No coverage | Has a strong provider network through Aetna |
Everest Prime | Yes, limited | Yes, limited | Some plans offer a limited pre-allowance of pre-existing conditions |
United Health One (Medical Plus) | No coverage | No coverage | Must be a member of the Federation of American Consumers to join |
United Health One (Medical Value) | Yes, limited | Yes, limited | Must be a member of the Federation of American Consumers to join |
Companion Life | No coverage | No coverage | Offers child-only coverage options, minimum 6-months of age |
Other sites that do a good job at comparing prices and features of short-term health plans are eHealth Insurance and Assurance . eHealth allows you to filter plans by monthly premium cost from below $100 to $300 and above. They also include optional additional benefits you can add to your plan such as prescription and pre-existing condition coverage. Some examples of providers eHealth lists are Companion Life, Everest Reinsurance, National General Accident & Health, United Healthcare, and Independence American.
Assurance uses data science and machine learning to speed up the online application process when applying for short-term health insurance. They also serve as a conduit to sell other health, life, Medigap, home, and auto policies from more than 20 providers. By simply entering a few facts about yourself such as household size, sex, and health condition their algorithm will let you know if you are eligible for short-term health plans they carry in your area (United Health, Aspen, and LifeShield). Assurance was recently purchased by Prudential and is licensed in most states, the availability of short-term plans depends on state regulation.
United Healthcare’s short-term insurance plans are underwritten by Golden Rule Insurance Company, a United Healthcare Company, which has been offering short-term insurance for over 30 years. We liked them for their seemingly low premiums, longer term, and self-renewable plan options. However, there are a few particulars to consider.
In order to apply to a short-term health plan with United, you must first become a member of the Federation of American Consumers and Travelers (FACT), a consumer organization that serves to provide you with consumer security and savings. Membership is open to everyone, but costs $48 per year.
Screenshot of uhc.com 10/22/2019
FACT is a partner of Golden Rule Insurance Company, and includes 20 different benefits that include savings on travel, limited scholarship opportunities, and coverage. At first glance these added benefits may seem great, but most of the features provided by the FACT membership are ones that you aren’t likely to use such as $5,000 on accidental death coverage or pet insurance discounts.
If you are to use FACT memberships, these could save you hundreds of dollars. However, note that the FACT membership alone incurs additional fees. FACT membership dues are billed at the same time as your separate United Healthcare short-term insurance plan.
To get an idea of the costs, a regular short-term plan could be priced at around $99 per month for a policy length of 90 days. Your FACT membership fees would add an additional $4 a month to your payment. This makes the total out-of-pocket costs to maintain that policy 5% higher than the premium quoted by United.
Policy Length Options
United offers an unusual three-year policy for people who want coverage for longer than 365 days. TriTerm Medical insurance is designed to offer more benefits than traditional short-term health insurance plans and provides coverage for one day less than three full years.
As federal regulation restricts temporary health insurance to 12-month terms totaling no more than three years of coverage, TriTerm Medical is limited duration insurance that lasts for nearly 36 months over three terms. In other words, by selecting TriTerm, you are essentially buying three one-year policies. This option is not available in all states.
TriTerm features includes limited preventive care coverage, office visits for injury or illness, and prescription coverage. Benefits may include health care, rehab, and hospice care which generally aren’t included in typical short-term health plans.
Unlike other short-term plans, with TriTerm you only have to apply once for just under three years of coverage. Your plan will just move into the second or third term when you get there, which may serve as an incentive for those looking for a cheap healthcare coverage option and don’t want to deal with the replication process hassle.
However, some aspects of TriTerm aren’t exactly consumer-friendly. If you’re seeking preventive care, there is a six-month waiting period during the first year of the plan. Eligible costs related to pre-existing conditions won’t be covered during the first 12 months. TriTerm Medical plans aren’t guaranteed issue either, so the company could deny renewal based on pre-existing conditions that occur during your first year of coverage.
Furthermore, TriTerm Medical plans include only a $200 per person/per term coverage limit for preventive and wellness checks. Preventive care is critical to keeping down future medical costs and preserving your health, but $200 doesn’t go very far when it comes to a physical exam and the lab tests and imaging procedures that are often recommended to get a complete picture of your health status.
For prescription medications, TriTerm offers a $5,000 max benefit per person, per term, for outpatient prescriptions. However, this coverage may vary depending on the plan you choose. TriTerm also comes with a “Preferred Price Card,” which United claims will allow you to purchase prescriptions at a lower price, but in truth is just a discount prescription card.
United Health promotes the fact that its policyholders have access to nearly 1,300,000 physicians and other health care professionals at more than 6,000 hospitals and medical facilities. But what good will that do when coverage for basic medical care is so limiting? Probably not much.
Be sure to verify your policy terms before purchasing this plan. Short-term health plans aren’t considered comprehensive health insurance under federal standards. These plans are only available for people between the ages of 19 and 63, with coverage ending at age 65. Factors such as height, weight, prior applications, and pre-existing conditions will be considered to determine eligibility for the plan.
Because short-term health insurance plans aren’t as heavily as regulated as policies that are sold through insurance exchanges established by the Affordable Care Act, understanding what they feature is crucial. That’s why the first thing we consider when looking at a plan’s features is its coverage options.
Federal regulation has allowed short-term plans to be exempt from pre-existing condition protections and benefit requirements that conventional health insurance policies must meet. Specifically, they are exempt from federal standards set by the Affordable Care Act (ACA) for individual health coverage. In other words, short-term health insurance policies don’t have to provide essential health benefits and guaranteed availability without regard to pre-existing conditions.
Regulation also allows short-term plans to use an individual’s health status as a rating factor to determine the cost of premiums. By contrast, private health insurance plans are federally prohibited from using a person’s health status to vary premium cost. Factors used to determine health status include medical condition (including both physical and mental illnesses), claims experience, receipt of health care, medical history, genetic information, evidence of insurability (including conditions arising out of domestic violence), and disability.
Currently 11 states do not offer short-term insurance plans, while others have placed certain regulations or restrictions regarding these plans. Common state regulations that limit short-term health policies include restricting short-term limited duration plans to a certain number of days (i.e., less than six months). Other states have placed restrictive limits on renewals or total plan duration. Certain states require short-term health policies to meet with the essential health benefits compliant with the ACA mandate; as a result, no insurers sell short-term policies in those states.
Short-Term Health Insurance Regulation by State
Short-Term Insurance: Regulation by State
Sources: Health Network and HealthInsurance.org
Short-term plans that include maternity benefits, substance abuse coverage, and other essential health benefits ranked higher with us. We were also impressed by plans that include prescription drug coverage.
Under the right circumstances, short term health insurance can be a good fit for millions of families and individuals. That’s why we compared plan options across the US to help identify the most comprehensive short-term options.
Compared to traditional major medical coverage, short-term plans are relatively affordable and offer lower premiums than Affordable Care Act compliant plans. However, the amount of the deductible, the coinsurance, the co-pay, the dollar limits on coverage, the age and gender of the insured, and other factors have a significant effect on how much they cost.
Still, the old maxim that you get what you pay for applies here. The reason short-term health insurance plans cost less is because they provide skimpier coverage. Some types of coverage (e.g., mental health services, substance abuse treatment, prescription drugs, and others) may be excluded entirely. Other types of coverage may be subject to caps, significant deductibles, and treatment exclusions. And since short-term plans can lawfully exclude coverage for pre-existing conditions, people with chronic health conditions may find that short-term policies don’t provide the coverage they need most.
We specifically took a look at what type of coverage you’re getting and what you have to pay .
We compared different short-term insurance plans based on a series of factors including application fees, premiums, maximums and deductibles to find out which insurers offer the most competitive prices on policies that provide reasonably solid coverage.
We examined the companies' overall customer satisfaction and their financial strength and stability. Customer experience and financial reputation can make all the difference when deciding between two different insurers with very similar short-term health insurance plans. The goal is to sign up with a company that provides responsive customer service and whose finances suggest that they will be able to pay policyholders’ claims in all different economic environments.
We first determined whether the company is an underwriter, subsidiary or partner, or marketplace. Then, we look for the company's ratings in the S&P, Moody's, and AM Best. Strong ratings across all three agencies generally paint the picture of a financial strength and stability. Since marketplaces don’t sell insurance directly, their financial strength isn’t all that relevant. Consumers are, however, strongly advised to do their own research into the insurers recommended by any marketplace.
We also review different insurance companies’ ratings with the Better Business Bureau and see how they handle customer complaints. From there, we visit Trustpilot, another popular consumer feedback platform. Although we focus on its score there, we also consider the number of reviews that have gone into calculating that score and whether or not the page has been claimed by the company. Most importantly, we consult the National Association of Insurance Commissioners (NAIC) database, which allows us to determine how the number of complaints about a given insurance company compares to the national average.
The number of uninsured Americans is on the rise again for the first time in a decade. According to new census data, 27.5 million people had no form of health insurance in 2018. That’s nearly 2 million more than the number of uninsured in 2017. Census officials said this marks the first year-to-year increase of uninsured people since 2008-09, when the Affordable Care Act (ACA) was passed.
The reasons for this increase are mostly speculative for now. However, analyses from the Kaiser Family Foundation, the Congressional Budget Office (CBO), the Joint Committee on Taxation (JCT), the Commonwealth Fund, the Urban Institute, and the Center for Children and Families suggested that the increase in the number of uninsured Americans could be due to rising health insurance premiums. Other factors may include:
The U. S. Census Bureau reported the rate of uninsured American was on the rise again
After the Affordable Care Act came into effect, the percentage of uninsured decreased historically. This was due to ACA’s efforts to extend Medicaid coverage to many low-income individuals. New census data shows the first significant rise in uninsured population in a decade. Statistics provided by the U.S. Census Bureau.
According to the CBO, new federal rules regarding short-term health plans will prompt about 4 million people to drop comprehensive ACA individual or small-group coverage to enroll in short-term plans or association health plans over time.
The US Department of Labor defines association health plans (AHP) as group health plan that employer groups and associations offer to provide less expensive health coverage for employees. AHPs also allow small employers to band together to purchase types of coverage available to larger employers. In contrast to short-term health plans, AHPs can’t deny coverage based on health or prior conditions. However, the lower premiums that short-term plans and AHPs offer to healthy people are not necessarily available to individuals with pre-existing conditions. And like short-term health plans, AHPs aren’t nearly as robust and comprehensive as ACA plans, which will leave many people with greater out-of-pocket healthcare costs.
The expansion of short-term plans and the use of association plans as a way to get around the requirements of the ACA concern healthcare experts. “The current administration’s expansion of short-term plans will leave people who buy these plans with large gaps in coverage and will raise costs for people with pre-existing health conditions,” says Aviva Aron-Dine , Vice President for Health Policy at the Center on Budget and Policy Priorities.
Short-term plans are exempt from many of the ACA’s consumer protections, including its prohibitions on denying coverage for those with pre-existing conditions or charging higher premiums based on an individual’s health status.
By 2029, the CBO anticipates the number of uninsured people in the US will grow to 35 million, or 13% for people under age 65. That estimated growth is due to an increase in the number of people expected to forgo comprehensive health insurance in response to the elimination of the individual mandate penalty. Again, an additional factor is people’s increasing enrollment in coverage from sources that do not meet the CBO’s and the Joint Committee on Taxation’s definition of health insurance, such as short-term plans.
“Moreover, CBO’s analysis may not fully account for the widespread use of deceptive marketing practices by short-term plan sellers, as documented in a recent Georgetown Center for Health Insurance Reforms report. If these practices are prevalent and successful, more people will likely enroll in even worse health plans than the CBO projects,” stated Aron-Dine.
Before signing up for short-term health insurance, there are a few things to consider. First and foremost, short-term plans aren’t considered comprehensive health insurance under federal law, as a result they aren’t required to be compliant with Affordable Care Act consumer protections .
This year, the current administration set forth new regulations to expand the availability of short-term health insurance by allowing these plans to be offered for up to 364 days and renewed at the discretion of the insurer for up to three years (36 months).
Short-Term Health Insurance Key Takeaways:
While the final rule’s expansion from three to 12-month policy terms can be seen as a plus for consumers who may have missed the open-enrollment deadline and do not qualify for other healthcare alternatives, light regulation in some states has incentivized some of the less than ethical operators in the business to ramp up their practices, according to a Georgetown University study.
According to faculty at the Center on Health Insurance Reforms at Georgetown University, many people purchase short-term plans mistakenly believing that they are as comprehensive as ACA plans.
“Most of the time, people don’t realize what they’re getting into when they purchase short-term health insurance plans,” said Cheryl Fish-Parcham, Director of Access Initiatives of Families USA. “They are taking major health risks, as these plans don’t have to comply with marketplace standards set by the Affordable Care Act. What people don’t realize is that with a short-term plan, you could end up paying more out-of-pocket expenses.”
Fish-Parcham suggested that consumers would be better off purchasing a comprehensive insurance plan or marketplace alternative rather than a short-term health insurance plan.
“People could be exposing themselves to denied coverage or financial risk when choosing short-term plans,” said Fish-Parcham. “Even when some short-term policies state they offer mental health coverage, their pre-existing conditions policy terms will be so complex that the person seeking coverage will probably not be eligible. On most occasions they will give you a per-dollar limit on care, for example, $1,000 per-day-limit for hospitalization. It’s very important that consumers read the fine print and policy terms thoroughly if they choose this type of plan.”
The Kaiser Family Foundation, a nonpartisan research organization, compared short-term insurance plans as a sort of tradeoff to consumers – lower premiums in exchange for more limited coverage and less protection than ACA-compliant plans.
According to Mental Health America’s The State of Mental Health in America 2018 report , one in five adults –that’s 40 million Americans , or more than the population of Florida and New York combined– have a mental health condition. In April 2018, the Kaiser Family Foundation found that on average, 57% of short-term health insurance plans sold on eHealth and Agile Health Insurance websites don’t cover mental health, and 38% don’t cover treatment for substance abuse. The report was published by Families USA .
Currently, 7 million people have both a mental health and substance use condition. Short-term health insurance policies generally do not cover substance use treatment, leaving most of this population vulnerable. National General, Secure Lite, Everest Prime, Standard Life Select, LifeShield, UnitedHealthOne (Medical Value), UnitedHealthOne (Medical Plus), Companion Life, and Aspen do not cover injuries resulting from intoxication, alcohol or drug use.
According to NPR, the average age of first-time moms in climbing in the US. By 2016, the common age when women have their first child is 26.3. Short-term health plans may cover complications due to pregnancy, but they are very limited. These policies do not cover abortions.
The National Center for Health Statistics reported that nearly half of the US population over the age of 12 took prescription pain relievers, tranquilizers, sedatives or stimulants. Prescription drug use increased with age, from 18% for children under 12 years to 85% of adults aged 60 and over. At least 16% of the time those drugs are misused by nearly 19 million Americans, according to the Centers for Disease Control and Prevention.
The Kaiser Family Foundation found the following facts on Short-Term Limited Duration plans:
According to Debt.org , the average costs for common surgeries are:
In 2018, seven health organizations filed a lawsuit to invalidate the short-term, limited-duration plan’s final rule . These organizations include The National Partnership for Women & Families, AIDS United, America Psychiatric Association, Mental Health America, National Alliance on Mental Illness, Association for Community Affiliated Plans, and Little Lobbyists, LLC.
The final rule expands access to short-term, limited duration insurance coverage by extending the maximum duration of these plans from three months to up to 12 months. The rule also allows insurers to renew or extend coverage for up to 36 months and requires organizations to update notice requirements.
However, top health organizations believe this new rule puts consumers at risk, as many people could mistakenly believe that short-term limited duration plans could replace comprehensive health coverage.
“This rule will harm patients and their families as well as others in the health care system by undermining access to quality, affordable coverage, will significantly disrupt insurance markets in states across the country, and threatens to bring back abusive practices that harm consumers specifically prohibited by the Affordable Care Act (ACA),” said the National Alliance on Mental Illness in a statement.
Similarly, other organizations have pushed back against the new regulation including the American Academy of Pediatrics and the American Medical Association (AMA).
“The American Medical Association has raised considerable concern with increasing the duration of short-term limited duration insurance (STLDI) plans beyond three months,” said Robert Mills, AMA press representative.
The AMA sent a letter to the Departments of Treasury, Labor, Health & Human Services in April 2018 urging withdraw of its proposed rule to expand the duration of STLD plans. In their letter , they cite short-term limited duration plans are “deficient and destabilizing” and that the new rule will be “devastating to the health of millions of Americans – disproportionately so for women, children and the chronically ill.”
As of 2015, 50 to 129 million non-elderly Americans have some type of pre-existing condition, according to the Department of Health and Human Services. At the time, 25 million individuals with pre-existing conditions were uninsured. This year that number will likely spike up as new census data becomes available.
On April 2019, the consumer representatives to the National Association of Insurance Commissioners (NAIC) raised concerns that the proliferation of short-term, limited duration insurance coverage would confuse consumers, leaving some who sign up for short-term plans facing higher out-of-pocket costs, denied claims, and unpaid medical bills, while also leading to adverse selection that harms states’ individual marketplace.
According to the NAIC study, most consumers don’t understand what short-term health insurance coverage really entails. This lack of understanding combined with concerns about aggressive marketing strategies of short-term plans will likely result in confused consumers unintentionally enrolling in short-term plans when doing so may not be sufficient to cover their health needs or financial situation.
Furthermore, this year the House Committee on Energy and Commerce launched an investigation into companies that sell or broker junk health insurance plans. In their investigation, they are examining aggressive marketing strategies, STLD plans that have discriminated against individuals based on pre-existing conditions, and denied coverage of claims, thereby putting consumers at financial and medical risk.
Organizations they are looking into include Agile Health Insurance , Anthem , Arkansas Blue, Cross Blue Shield , Blue Cross Idaho , Cambia Health Solutions , eHealth , Everest , Health Insurance Innovations , Healthcare Solutions Team , Independence Holding Company , National General Accident and Health , UnitedHealth Group , LifeShield National Insurance Co. , and Pivot Health .
CHIP provides low-cost health coverage to children in families that earn too much to qualify for Medicaid. One of the perks of CHIP is that, like Medicaid, you can apply for it throughout the year to see if you qualify. In some states, CHIP covers pregnant women. Each state has its own rules about who qualifies for CHIP. If you apply for Medicaid coverage to your state agency, you’ll also find out if your children qualify for CHIP.
Medicaid is a state-run and federal program that provides health coverage if you have low income. States set their own guidelines and determine the type, amount, duration, and medical services available within federal guidelines. Federal law requires states to provide mandatory benefits and allows states to choose optional benefits.
Medicare is a federal program that provides health coverage for individuals who are 65 years and older or for people under 65 with specific disabilities, no matter their income. You can apply online even if you’re not ready to retire. There are two main ways to get your Medicare coverage: Original Medicare or a Medicare Advantage Plan (Part C).
If you are eligible for both Medicare and Medicaid (dual eligible), you can have both. Make sure to call 1-800-MEDICARE or contact your local Medicaid office to learn more about Medicare and Medicaid costs and coverage, as covered services and cost-sharing may vary depending on which plan you have.
Short-term, limited duration health plans are not like catastrophic plans . Only people under 30 years-of-age and individuals with a hardship exemption or affordability exemption based inability to afford Marketplace or job-based health insurance are eligible for a catastrophic plan.
With a catastrophic plan monthly premiums are low but deductibles are very high. For 2019, the deductible for all catastrophic plans is $7,900 -- that’s the amount you have to pay out-of-pocket before your catastrophic plan starts to cover any expenses.
Catastrophic plans cover the same essential health benefits as a marketplace plan and help you cover unexpected medical costs that you otherwise would be unable to pay. These plans are designed to protect you from high out-of-pocket expenses in the scenario of a catastrophic event (illness or injury).
Catastrophic plans cover preventive services such as shots, immunizations, screening tests including cancer/mammography. They cover health screenings for women every one to two years for women over 40. They also offer three primary care wellness visits per year before you’ve met your deductible. Added benefits include coverage for certain types of birth control and breastfeeding coverage.
Note that the availability of catastrophic plans will depend on your state.
Short-term health insurance plans do not cover pre-existing conditions. They are federally exempt from providing medical coverage for pre-existing health conditions and essential health benefit standards set by the Affordable Care Act. As a result, they can also deny coverage or charge higher premium prices to people with pre-existing conditions.
The current administration has eliminated federal tax penalty for individuals that do not have creditable health insurance in 2019. However, those that received a penalty for not having health insurance in 2018 still have to pay the penalty on their 2018 tax forms. Short-term health insurance plans are not considered creditable health insurance under federal law as they do not meet minimum essential health benefit standards set by the Affordable Care Act.
By Tamara Holmes HealthCare Writer
Tamara E. Holmes is a Washington, DC-based freelance journalist and content strategist who has been writing about topics pertaining to personal finance, health insurance, careers and small business for more than a decade.
We want to help you make educated healthcare decisions. While this post may have links to lead generation forms, this won’t influence our writing. We adhere to strict editorial standards to provide the most accurate and unbiased information.
Finding the best short-term health insurance company to meet your needs can be challenging. When it comes to your health, you want a policy you can depend on and one that is worth the money. By checking out short-term health insurance companies, you can determine which ones have a solid reputation and you have a better chance of ending up with a product that will meet your needs.
If you’re looking for a short-term health insurance policy , these carriers should be on your list to consider.
What You Need to Know Once you have some insight into the background of the short-term health insurance companies, you want to take a look at the policy offerings to see which one is the best for you. Note the monthly premium price. One of the most important factors is the affordability of the product. Make sure you can handle the monthly cost and you are comfortable with what you are getting for your money. See how robust the benefits are. Compare short-term health insurance policies from multiple companies so you can get an idea of what is standard coverage and what is not. Make sure the company you go with offers a policy that is either comparable or more full-featured than the others. Calculate total out-of-pocket expenses. Your monthly premium is likely not the only cost you’ll be faced with. You may also have to pay expenses such as a deductible or a co-payment each time you visit a doctor. 3 Before deciding on which company you’re going to go with, make sure your total out-of-pocket costs are reasonable and affordable. It’s important to note short-term health insurance is not required to comply with certain federal market requirements for health insurance like Affordable Care Act coverage. Plans may also have pre-existing limitations that may prevent coverage from applying to medical conditions that existed prior to enrollment.
Founded in 1971, 4 Companion Life Insurance Company underwrites short-term policies for Pivot Health 5 and enjoys an A+ rating from A.M. Best. 6 Pivot Health is a division of HealthCare, Inc. With Pivot Health short-term health insurance plans, you can see any doctor without being confined to a network, as well as enjoy benefits such as telehealth or video consultations with doctors. 7 The most basic plan for a 35-year old woman with no children who lives in Dallas costs $116 per month, as of May 2021. 9 In addition to short-term health insurance policies, Pivot Health offers solutions to other healthcare needs such as dental and vision plans. 10
Everest prides itself in having been in business for more than 40 years, 11 and has an A+ rating from A.M. Best to show for it. 12 Their short-term health insurance plans can tide you over if you’re in a pinch with co-pay options of $30, $40 or $50 and deductible options that range from $1,000 to $10,000. 13 For a 35-year-old woman living in Dallas who has no children and does not smoke, the most basic plan comes with a $102.38 premium per month. 14
However, prescriptions aren’t covered unless they are prescribed during a covered hospitalization, and you’ll need to get dental and eye care taken care of elsewhere. 15 In addition to short-term policies, Everest offers accident coverage, as well as disability income protection for professional sports teams. 16
The Independence American Insurance Company has been in the insurance business for more than 30 years 17 , and holds an A- rating by A.M. Best. 18 Their short-term medical plans cover such health needs as laboratory tests, emergency room visits and hospital room and board though they do not cover sport-related injuries or pre-existing conditions. 19
When it comes to cost, the Independence American Insurance Company points to the Centers for Medicare & Medicaid Services’ estimate that short-term plans will save you 31.5%, on average, of what you would pay for a traditional policy. 20 For a 35-year-old childless woman in Dallas who does not use tobacco, plans start at $138.27 per month. 21 In addition to short-term plans, the Independence American Insurance Company offers Hospital and Surgical Indemnity plans, and Dental and Vision plans. 22
National Health Insurance Company was incorporated in 1965 and is one of four companies that underwrite health insurance products for National General Accident & Health. 23 The other companies are Integon National Insurance Company, Integon Indemnity Corporation and Time Insurance Company, and the four of them have scored an A- (Excellent) rating from A.M. Best. 24
National General’s short-term health insurance policies are either through the Aetna network or Cigna’s PPO network, depending upon which state you live in. 25 With monthly premiums starting at $122.84 for a 35-year-old woman living in Dallas with no children and no smoking history, 26 you can choose coverage terms as short as 30 days or as long as three years. 27 While you can expect out-of-pocket costs such as $50 per doctor visit and a $10 copay for generic prescription drugs 28 National General also offers Supplemental Coverage plans that would limit the amount you would have to pay if those costs started to add up. 29
In 2003, UnitedHealthcare acquired Golden Rule Insurance Company, and thanks to that acquisition, the joint company has 75 years of experience selling insurance. 30 In 2019, UnitedHealthcare added HealthMarkets Insurance Agency and Chesapeake Life Insurance Company to its portfolio. 31
With an A, or “Excellent” rating from A.M. Best, 32 UnitedHealthcare offers a range of short-term plans, as well as TriTerm medical insurance for those who want short-term coverage for up to three years. 33 UnitedHealthcare also bundles certain insurance offerings together such as their Accident and Dental Insurance Bundle for unexpected medical expenses and preventive dental work. 34 For a 35-year-old woman in Dallas who does not smoke and has no children, plans start at $89.40. 35
If you can’t find what you are looking for, these carriers also provide short-term offerings:
Like Companion Life Insurance Company, the North River Insurance Company underwrites policies for Pivot Health , a division of HealthCare Inc. North River Insurance Company is a subsidiary of Crum & Forster 36 , an insurance provider that has been around since 1822. 37
Since 1982, LifeShield has offered specialized healthcare solutions such as short-term medical plans, critical illness plans and accident coverage. 38
Like the North River Insurance Company, the United States Fire Insurance Company is a subsidiary of Crum & Forster. 39
Sometimes a traditional health insurance policy isn’t readily available. Maybe you’re temporarily between jobs and don’t want to pay a lot of money for COBRA. Perhaps you missed the open enrollment period and you have to wait until the next one. A short-term health insurance policy can tide you over so you have a limited amount of medical coverage if you need it.
You determine how long you want the coverage for, such as if you want the policy for 30 days or as long as 364 days. While a single plan can not top 364 days, it can be renewed up to three times, giving you approximately three years of coverage. 40
Short-term health insurance policies typically cover doctor visits and emergency care. However, it’s just as important to know what they don’t cover. Short-term health insurance policies do not meet the requirements of the Affordable Care Act , so you won’t have coverage for preexisting conditions . 41 You also might not have prescription drug coverage unless you’re prescribed medication for a condition diagnosed under the plan. Also, preventive care may or may not be covered. 42
A person between jobs, a college student who’s about to graduate and get health insurance through his or her first job, or a person who missed their company’s open enrollment season might want to consider short-term health insurance. Anyone who’s relatively healthy and needs a policy to tide them over until they can get a more full-featured plan might find a short-term plan to be helpful.
If you have preexisting conditions or you need a long-term option for health care, you should skip the short-term health insurance options and look for a plan that can give you more protection, whether it is through your employer or through the Health Insurance Exchange.
When assessing health insurance companies, there are a number of factors you want to consider.
An insurance policy is only good if the insurance company has the money to pay out on a policy if needed. To gauge the financial strength of an insurance company, you don’t want to take their word for it. Instead, check the financial rating of the insurance company by an independent agency that rates them such as the A.M. Best Company or Fitch Ratings. 1 A.M. Best rates insurance companies on a scale from A+ to D, with A+ indicating the company has a “superior ability” to meet ongoing insurance obligations. 2
Another factor to consider is the age of the company. If an insurance company has been in business for a relatively long period of time, they have a history behind them that a newer insurance company simply does not have. While it’s true that a company can fail at any time, an older company likely has a stronger foundation.
When assessing short-term health insurance companies, you may also want to look at if they sell other types of policies such as individual health insurance policies and limited benefit plans. The more full-featured their policy offerings, the more robust the short-term health insurance company is likely to be.
Choosing the right health insurance plan is always a serious matter. If you’re biding time and need limited coverage temporarily, look for a short-term health insurance plan that gives you the most coverage for your money. However, have a strategy in mind to find a more full-featured plan to cover your health insurance needs for the long-term.
The views and opinions expressed are those of the authors and do not necessarily reflect the official policy or position of HealthCareInsider.com or HealthCare, Inc.
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Short-term health or short-term medical insurance plans can fill a temporary gap in health insurance coverage. They can be a good fit for people who can’t get group health insurance or COBRA, or who can’t enroll in better coverage through an Affordable Care Act (ACA) plan because they missed open enrollment and aren’t eligible for special enrollment. The best short-term health insurance plans cover essential benefits at an affordable price.
It’s important to understand that short-term health insurance isn’t an adequate replacement for traditional major medical coverage. The plans are not required to cover the same essential health benefits required of ACA plans , deductibles are often very high, and pre-existing conditions are typically not covered.
For these reasons, short-term health coverage has been called “ junk insurance ” and is only available in around 38 states. The Biden administration issued a rule on March 28, 2024, limiting short-term health insurance plans to three months, with a single one-month extension allowed. The aim is to protect consumers from relying on them for more than a few months, and instead steer them toward more comprehensive insurance plans. The rule applies to policies issued on Sept. 1, 2024, or later.
For now, though, the plans have fewer restrictions. And despite their drawbacks, there may be times when you need to use a short-term plan in a pinch. We researched 17 plans from three major health insurance companies and evaluated their maximum coverage benefits, length of coverage, costs, prescription drug coverage, and state availability.
UnitedHealthcare
The Plus Elite plan from UnitedHealthcare has the best average pricing among six-month plans when considering factors like premiums, deductibles, and out-of-pocket maximums. It also offers a $75 urgent care visit and $25 copays on some prescriptions.
$75 urgent care visit before deductible
Deductible options as low as $2,500
Some preventive care covered
Cap on prescription costs per term
No coverage for pre-existing conditions
Minimal preventive care coverage
UnitedHealthcare’s Plus Elite plan, underwritten by financially strong Golden Rule Insurance Company, offers the best pricing among six-month plans based on the average lowest premium, highest deductible, and a $2 million maximum coverage benefit.
Plus Elite comes with some nice benefits, including one $75 urgent care visit per term, a large provider network that doesn’t require you to get a referral from a primary care physician, and the option to add $0 virtual care visits through Amwell for an additional premium.
There’s no cost for covered healthcare services once you’ve met your deductible, and there’s a low-deductible option available for a high premium. Depending on your state, you can choose a term length of one to 12 months.
However, there are limits and exclusions you should be aware of, including a $5,000 cap on prescriptions per term, and preventive care is limited—for example, immunizations aren’t covered care. It does not cover pre-existing conditions, which include pregnancy. Marketplace (ACA) plans provide better coverage and may be a better value.
To qualify, you’ll also need to fork over an additional $10 monthly for a membership to the Federation of American Consumers and Travelers (FACT).
United Healthcare
UnitedHealthcare’s TriTerm Copay Select Max plan offers three 12-month coverage terms with one application, and covers some services with a copay before you’ve met your deductible. However, most people should opt for a shorter term and apply for an ACA plan during the next open enrollment period.
Pre-existing conditions covered after 12 months
Preventive care of up to $200 covered after 6 months
$25 Tier 1 prescriptions
Five deductible options go as low as $2,500
30% coinsurance after deductible
Relatively expensive premiums
Most people won’t need a term longer than 12 months, but if you’re seeking a longer coverage period with one application, UnitedHealthcare’s TriTerm Copay Select Max plan is our top pick for its overall pricing and prescription drug coverage.
Premiums are relatively high, but many healthcare services are covered before the deductible is met. For example, you can get a $75 urgent care visit, four $50 doctor’s office visits per term, and $25 prescription drugs.
Pre-existing conditions are covered after 12 months, and you get $200 per term to spend on preventive care after six months. The preventive care covered is more comprehensive than many other plans, including immunizations and mammograms.
You can choose from five deductibles between $2,500 and $12,500, and coverage tops out at $1 or $2 million.
But while most fees are flat copays, you’ll pay a 30% coinsurance for emergency room and hospital stays after the deductible is met. This can be a significant amount. You also have to read the fine print to avoid unpleasant surprises. For example, if you’re not admitted but only seen in the emergency room, you’ll pay another $500 deductible per visit.
Pivot Health
Pivot Health’s Quantum PPO Copay plan offers a $5 copay for generic prescriptions, the lowest of the providers we reviewed.
$5 generic drugs
Access to the Cigna PPO network
Preventive care coverage of up to $250 per term provided
Limited doctor’s office and urgent care visits not subject to deductible
Pre-authorization required for most procedures
Coverage max option of $500,000 may not be sufficient
Pivot Health offers the cheapest prescription drug copays of the providers we reviewed. The Quantum PPO Plan offers $5 generics, $30 preferred drugs, and $75 non-preferred drugs. The plan provides access to the Cigna PPO network with some coverage for out-of-network doctors.
You can choose an in-network deductible as low as $2,500; after you reach that amount, the plan pays 80% of covered medical expenses. But to have 100% of covered expenses paid for, you must choose a $10,000 deductible.
The covered medical procedures can top out at $500,000 or $1 million; $500,000 may not be enough if you’re in a serious accident.
The plan covers primary care, specialist, and urgent care visits with a copay before meeting your deductible, but you’ll be limited to three visits across all categories. Not all plans offer preventive care, but Quantum PPO Copay does for one visit per period, for up to $250 in expenses.
Premiums are relatively high considering these limits. And you’ll be required to get pre-authorization for most procedures or face a $500 reduction in your benefits.
Pivot Health’s Deluxe Plan offers deductible options as low as $1,000. However, your premiums will be costly with this option.
Low deductible and out-of-pocket maximum options
Annual preventive care covered up to $200
Free telemedicine visits
No pre-existing condition coverage
High premiums if you choose lowest deductible
Limited doctor’s office and urgent care visits
You can choose a deductible as low as $1,000 with Pivot Health’s Deluxe plan and see any provider you wish. After you meet your deductible, you’ll only pay 20% coinsurance until your out-of-pocket maximum is met, which can be as low as $4,000.
The Deluxe plan also comes with generic medication costs of just $10. And you can get one preventive care visit of up to $200 covered per term.
There’s also an emergency room copay, which is a nice feature, but if you’re admitted, your care costs will also be subject to your deductible and coinsurance. Doctor’s office and urgent care copays are also limited to three visits across categories before your deductible and coinsurance apply.
Everest’s 12-month Flex Term Health Insurance plan is widely available, offering coverage to residents of 25 states, and it comes with multiple deductible and coinsurance options.
Available in 25 states
$50 doctor’s office visit copay
Multiple coinsurance options
Cheap premiums
No prescription drug coverage
Caps on coverage for certain services
Flex Term Health Insurance is widely available and you can mix and match multiple deductibles, co-insurance percentages, out-of-pocket maximum, and coverage period maximum options. Adjustments will make your premiums higher or lower. However, coverage period maximums top out at $1.5 million, without a $2 million option available.
The plans come with relatively cheap premiums but offer limited coverage. As an example, we collected a quote for a 6-month plan in Texas for a 30-year-old woman. Here is the breakdown:
Premium | Deductible | Max Benefit Coverage |
---|---|---|
$99 | $10,000 | $750,000 |
Although you’ll only pay $50 for each physician’s office visit, there’s no prescription drug coverage outside of medications during a hospitalization. You’ll also be required to pre-certify most procedures or incur a penalty.
You can see any medical provider, since the plan is not confined to a network, but it’s financially wise to use the PHCS Practitioner Plus Ancillary Network so you won’t be charged the difference when services cost more than what your policy covers.
Before purchasing short-term health insurance, check to see if you’re eligible for a special enrollment period . Marketplace plans will provide better coverage for most people and may even cost less monthly. If you must choose a short-term health insurance plan, the best plan will depend on your expected healthcare needs and whether you take any medications.
UnitedHealthcare’s Plus Elite plan offers the best overall pricing and great benefits, such as $50 urgent care visits and the option to add $0 virtual care. If you anticipate needing a longer term, the Copay Select Max plan from UnitedHealthcare may be your best bet. If you take medications, Pivot Health’s plans offer the lowest copays and low-deductible options. Everest offers an inexpensive and widely available plan, but it doesn’t cover prescriptions.
$2 million | 12 Months | $163 | |
$2 million | 36 months | $266 | |
$1 million | 36 months | $244 | |
$1 million | 36 months | $259 | |
$1.5 million | 12 months | $138 |
Short-term health insurance is a type of major medical insurance that provides coverage for a limited term. Unlike ACA plans offered on the Health Insurance Marketplace, short-term plans don’t cover pre-existing conditions and aren’t required to cover essential health benefits such as prescription drugs, mental healthcare, and preventive care. Because they’re not subject to ACA limits, short-term health insurance plans can result in high out-of-pocket costs.
For these reasons, short-term health insurance should only be used for temporary coverage until you’re eligible for employer-sponsored group health insurance or until open enrollment for an ACA plan. You should also check to see if you’re eligible for a special enrollment period , which would allow you to get an ACA plan right away. Short-term health insurance should be a last resort when other coverage options are not available. While it’s better than nothing, it can leave you vulnerable to unaffordable medical bills.
Short-term health plans can have many exclusions, including no coverage for pre-existing conditions. Short-term health plans do not have to meet the basic requirements that ACA plans do, and have significant risks of causing medical debt due to high deductibles and extensive exclusions that can lead to denials of coverage. Up to 71% of plans do not cover outpatient prescription drugs, and no short-term health plans cover maternity care.
Each state approaches short-term health insurance in a different way. Some states have banned the coverage or enacted so many regulations that no insurer is willing to offer a plan to state residents. For example, in Colorado, the initial contract is limited to six months and you can’t be enrolled for more than 12 months in an 18-month period. Insurers can’t reject applicants based on their medical history.
Other states have some limits on the coverage, while others have very few restrictions. These regulations and restrictions will determine which plans are available and which limitations are in place.
A September 2023 report from the Paragon Institute (a nonprofit policy research institute stating a focus on free-market solutions) categorized states by availability and regulatory environment.
State by State Limits on Short-Term Health Insurance | |
---|---|
Restrictions | States |
Short-term insurance banned or regulations are so strict it is not offered | California, Colorado, Connecticut, Hawaii, Maine, Massachusetts, Minnesota, New Jersey, New Mexico, New York, Rhode Island, Vermont, Washington D.C., Washington state |
Some limitations on short-term health insurance | Delaware, Illinois, Maryland, Michigan, Nevada, New Hampshire, Oregon, Virginia |
Fewest limitations on short-term health insurance | Alabama, Alaska, Arkansas, Arizona, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Montana, Nebraska, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, West Virginia, Wisconsin, Wyoming |
How does short-term health insurance compare to cobra.
A COBRA plan allows you to maintain the exact same coverage you had through your employer or previous group benefits. Any amount you’ve already paid toward your deductible can be helpful overall. However, you’ll likely pay more for the same coverage—your employer often helps pay your premium. Your former employer can charge up to 102% of the plan’s cost (2% is for administrative expenses).
Short-term medical plans may cost less (depending on your age and other factors) but also offer much less coverage, many exclusions based on the policy or your pre-existing conditions, and few of the essential benefits required by ACA plans.
Short-term health insurance provides limited coverage as a temporary bridge while you wait to qualify for an ACA-compliant plan or employer-sponsored coverage. You'll be eligible for a special enrollment period if you lost your job or otherwise lost coverage. Other life events qualify you for special enrollment as well. However, if you missed the application window, short-term health insurance is better than forgoing coverage.
When shopping for short-term health insurance, factors include maximum lifetime coverage limits, deductibles, coinsurance, state availability, and prescription coverage. But it’s also particularly important to review coverage and exclusions. Many medical procedures and conditions may be excluded from coverage—as in, your insurance company won’t pay anything. Or, specific procedures may be subject to different limits, which can come as a surprise. For example, the company may not pay more than $1,000 for an emergency room per day, even if it costs far more.
You can buy short-term health insurance from an agent or directly on an insurance company's website. Short-term coverage sometimes offers lower monthly premiums but may cost you more if you need emergency or chronic care, and your application could be rejected based on your medical history. Before you buy short-term health insurance, check if you qualify for a special enrollment period and any cost-sharing reductions available in the ACA Marketplace.
CMS.gov. " Short-Term, Limited-Duration Insurance and Independent, Noncoordinated Excepted Benefits Coverage (CMS-9904-F) Fact Sheet ."
KFF. " Analysis: Most Short-Term Health Plans Don’t Cover Drug Treatment or Prescription Drugs, and None Cover Maternity Care ."
Healthinsurance.org. " Availability of Short-Term Health Insurance in Colorado ."
Paragon Institute. " Short-Term Health Plans, Long-Term Benefits: States That Allow Short-Term Coverage Have Stronger Health Insurance Markets ."
U.S. Department of Labor. " Continuation of Health Coverage (COBRA) ."
Oregon.gov. " 11 Questions to Ask Before Buying Short-term Health Insurance ."
Short-term liability insurance gives small business owners and independent contractors the flexibility and affordability they need.
Types of short-term liability insurance, coverage when you need it, and not a minute more.
Nearly every business needs some form of liability protection, but not every business needs ongoing coverage. Short-term liability insurance may be the best solution for companies that don’t need annual coverage. As the name suggests, short-term liability insurance provides coverage only when your business needs it.
Short-term liability coverage can be purchased for a specific time frame, as opposed to an annual insurance policy that’s “always on.” With Thimble, you can buy short-term policies by the job, month, or year.
The benefit of short-term business insurance is quite simple: don’t pay when you’re not working and keep more money in your pocket. Short-term liability insurance gives small business owners and independent contractors flexibility and affordability.
Short-term liability insurance is most appropriate for business owners whose work is episodic. Following are a few scenarios where short-term liability insurance may be appropriate.
You work in a seasonal industry — For instance, if you moonlight as a hiking guide in the summer, you certainly want to ensure that you’re not exposed to third-party bodily injury liability every time you take a group out. Short-term liability insurance can cover you just for the season, rather than you having to pay for an entire year.
You work on projects that have a limited duration – For example, if you have a part-time handyman business, you might work on a project-to-project basis, meaning it’s best for you if you only have to pay for insurance while you have a project.
You’re bidding on a project that requires proof of insurance – If you’re a general contractor bidding on a project, you may need to show a Certificate of Insurance (COI) to prove that you’re covered and for how long. A COI for short-term liability insurance shows that you have coverage, and you can maintain it just for the duration of the project.
You provide professional advice to clients – Say you’re starting your own career coaching business. Your job involves advising your clients, guiding them towards professional growth. You can purchase short-term liability insurance just for your coaching sessions until you build your business into a full-time gig.
There are two main types of business liability insurance , general liability insurance and professional liability insurance. Almost every business needs one or both types of coverage. Fortunately, both are available as short-term liability insurance policies.
Here’s what each type of insurance covers:
Both general liability insurance and professional liability insurance will provide for your legal defense and the settlement of claims if your business gets sued.
Pro tip: Liability insurance does not cover your employees or contractors who work with you. Instead, you must add subcontractors as Additional Insureds to your policy, and you’ll need workers’ compensation to cover your staff.
Short-term liability insurance may be the most affordable way for many businesses to make sure they have coverage only when it’s needed and not a minute more. And where can you get short-term liability insurance? At Thimble, of course.
Thimble specializes in making insurance simple, scalable, and flexible. You might call it our mission. We know that you need to move fast to get ahead in business. So we offer quick-thinking insurance that puts you in control as you grow.
Click “Get a Quote” or download our app to get short-term liability insurance in 60 seconds. Purchase, modify or pause coverage when you need to. Thimble puts you in the driver’s seat.
Get a quote from Thimble in less than 60 seconds and get your Certificate of Insurance instantly.
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Become a unitedhealthcare broker for individual and family short term and supplemental plans.
Expand your product portfolio with UnitedHealthcare short term, limited-duration insurance and supplemental health plans for individuals and families. Enjoy competitive commissions, timely payments and best-in-class support. Get up and running quickly with our easy onboarding and contracting process.
Offer your clients a wide range of products backed by the strength and stability of a trusted brand. Our short term and supplemental plans are underwritten by Golden Rule Insurance Company, a UnitedHealthcare company. Plan options include:
Provide flexible options for clients who have a gap in health insurance coverage — like those waiting for ACA coverage or benefits from a new job to kick in. 1
Our dental plans offer coverage for basic dental care, plus options for major care coverage like dental implants in most states. Our vision plans help cover vision care expenses like routine eye exams, prescription glasses and/or contact lenses.
Accident insurance offers benefits that help with expenses in the case of an accidental injury. Our critical illness plans offer cash benefits to help your clients cover expenses related to qualifying serious illnesses.
Help meet a variety of coverage needs with hospitalization insurance and hospital and doctor fixed indemnity plans that pay a fixed cash benefit to help cover qualified related expenses. Plus, offer convenient care with telehealth options.
Sign in to the Broker E-Store to:
Need help? Call the Broker Service Center at 800-474-4467 .
Need help finding short term, supplemental insurance or another type of health plan for you or your loved ones? UnitedHealthcare offers a variety of coverage options made to support your health at every stage in life.
Explore our wide range of health insurance products, from employer-sponsored plans to ACA Marketplace plans.
The Biden administration’s proposal to restrict short-term health plans to three months may elevate the uninsured rate, Healthcare Finance reports. This limitation could leave individuals, particularly young adults, and those with limited incomes, at risk of being uninsured, affecting hospitals and health systems through an increase in uncompensated care cases, according to Mackenzie Wallace, a partner at the Thompson Coburn law firm.
Appeals court backs insurer in family intellectual property fight, oregon roofer cited for exposing workers to fall hazards, acting n.j. governor, also a comp attorney, signs bill raising contingency fees, halliburton confirms cyberattack on systems, torrential rains, floods wreak havoc in bangladesh, jetstar hit with class action over failed covid refunds, croatian insurers’ premiums up 13%, ohio pension fund receives $31.6 million to ensure solvency through 2051, new jersey to forgive $100 million in medical debt.
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Published: Aug 23, 2024, 11:44am
Running a retail store can be fulfilling, but it’s not always a stroll through the mall. To keep your shop open and thriving, it’s important to have the right insurance to cover your investment from the unexpected.
For example, you might discover that one of your employees stole thousands of dollars of merchandise. Or a cyber attack shut down your online shop for weeks, resulting in lost income and angry customers. Retail insurance is like a custom-fit suit for your business. It is designed to cover your store’s unique risks and needs, allowing you to concentrate on your customers.
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Retail insurance covers your business from financial losses due to accidents and common risks that retailers face. Like a carefully curated inventory tailored to meet your customers’ unique needs, retail insurance combines different policies to cover your business against the risks of being a merchant.
Retail insurance can cover theft, vandalism, property damage and lawsuits. For example, if your online fishing gear shop gets hacked, retail insurance can help cover expenses like computer repairs, data recovery and legal fees.
Every retailer has distinct needs that may require a combination of coverages. Here are a few key types of small business insurance.
Retailers can benefit from starting with a business owners policy (BOP) . A BOP bundles three key coverages into one plan. In addition, buying a BOP may help you save money since it’s usually less expensive to bundle coverages than buying each policy.
Here’s what a BOP includes:
Also called business liability insurance , this covers accidental property damage and injuries to people other than your employees. If someone sues you, it can also pay for legal fees, court costs, and settlements. For example, if a display shelf collapses and injures a customer, this coverage can pay for the customer’s medical bills and legal costs if they sue you.
As a retailer, you’ll likely have business property or assets like inventory, furniture, equipment or a physical store. Commercial property insurance , or business property insurance, covers these items’ damage, destruction, or theft. For example, if a small fire destroys two boxes of inventory, this insurance can pay to replace or repair them.
This type of insurance can replace lost income if you have to temporarily close your shop due to a problem covered in your policy, like a fire or falling objects. For example, if a tree falls through your front window and you can’t operate your business, this insurance can cover your lost earnings and moving costs if you need to relocate.
It’s also called business interruption insurance .
Other types of retail insurance you may need to add to your BOP include:
When you use a car, truck or other vehicle for your business, you need commercial auto insurance . It covers property damage and accidental injuries caused to others, as well as repair and replacement costs for your vehicles if they are in an accident or damaged by theft or vandalism. It’s worth noting that your personal auto policy won’t cover vehicles used for your business operations.
Commercial umbrella insurance offers extra coverage beyond your standard business liability policy limits. For example, if a neighboring business sues you for $1 million after a fire spreads from your store to theirs, and your general liability policy only covers up to $500,000, commercial umbrella insurance can pay out for the remaining $500,000.
Getting cyber liability insurance is a good idea if you run an online store and handle customer info like credit card numbers. This insurance covers expenses from a data breach or cyber attack, such as data recovery, investigative services and legal fees if someone sues you for damages.
Directors and Officers (D&O) insurance covers your company’s leaders, like executives and board members, if they get sued. For example, if one of your investors claims that an executive mismanaged money and caused them a loss, and they sue your company, this insurance can cover the legal expenses and any settlement costs.
This type of insurance covers store owners and retailers if someone claims that their products caused harm or property damage to them. For example, if a customer claims your new skincare line caused a severe allergic reaction, your product liability insurance can pay for your legal costs, judgments and settlements.
By law, most states typically require retailers with employees to have workers’ compensation insurance , even if they have just one team member. This insurance covers employees if they become ill or injured while performing work duties. It can pay for expenses like medical bills, disability benefits and lost wages.
On average, retailers pay $65 per month for a BOP, according to Insureon. What you pay for coverage is typically determined by several factors, including:
Here’s how to get the best small business insurance for your shop:
Here are a few reasons why retail insurance is important:
Compare Free Quotes From Top Insurers at Simply Business. Get a Policy in Under 10 Minutes.
What kinds of retail business insurance are there.
There are various types of retail business insurance . General liability, property insurance and business interruption insurance can create a solid foundation for your retail coverage, which you can usually buy with a Business Owner’s Policy (BOP). Other important coverage types include commercial umbrella insurance, workers’ compensation insurance and product liability insurance. The exact coverages you need depend on the specific risks your store faces.
For example, if you sell your own line of products, product liability insurance can help cover expenses if your product causes harm to anyone and they sue you.
If you sell any type of goods, carrying commercial retail insurance is a good idea. The types of businesses that can benefit from commercial retail insurance include boutiques, convenience stores, flower shops, markets and online merchants.
The best small business insurance policy for retailers usually includes general liability coverage, commercial property insurance and business income insurance. A business owners policy (BOP) provides a solid insurance foundation, combining all these coverages into one policy.
Since each retailer faces specific risks, you might need to add extra coverage. For example, you’ll need workers’ compensation insurance if you have employees.
With 15 years of immersion in the world of personal finance, Ashley Kilroy simplifies financial concepts for individuals striving toward financial security. Her expertise has been showcased in reputable publications including Rolling Stone, SmartAsset and Money Talks News. She's committed to equipping readers with the knowledge needed to achieve their financial goals.
COMMENTS
We analyzed temporary health insurance providers to determine the best short-term health insurance companies, based on cost, coverage and complaints.
Short-term health insurance offers limited coverage for up to 12 months in most states, with the chance to extend the plan for another two years. Some states don't allow short-term plans or ...
Explore a real-world insurance company business plan example and download a free template with this information to start writing your own business plan.
Short-term health insurance is a policy that covers qualified health expenses for less than one year and is best used when in-between health plans.
Is short-term health insurance right for you? Check out our ratings of the best companies offering short-term plans and tips for evaluating these options.
UnitedHealthOne has fast and flexible Short Term Medical insurance plans for temporary periods. Learn more and apply for health coverage.
Read on for the 10 best short term health insurance companies, based on criteria like affordability, what they cover, and the types of plans they offer.
Short-term or temporary health insurance plans are often used by people who are between jobs or waiting for their employer-sponsored health insurance to begin. Unlike traditional health insurance plans, which generally offer comprehensive benefits, short-term plans provide less coverage. They do not cover pre-existing conditions, routine ...
Short-Term Health Insurance: Provides basic coverage for covered unexpected medical expenses, such as emergency care and hospitalization. Benefits can vary, and coverage for pre-existing conditions, prescription drugs, preventive care, maternity care and other ACA essential benefits is generally excluded.
Looking for a short-term health insurance plan to bridge a coverage gap or bide you over until Medicare? We review the top carriers you need to know.
We reviewed and compared costs, coverage, and restrictions from the top short-term health insurance providers. Find out which companies rank the best.
What does short-term health insurance cover? A temporary health insurance plan usually covers healthcare costs related to emergencies, such as accidents or serious illnesses.
Short term health insurance. Find short term limited duration health plans to help bridge gaps in coverage 1. With coverage options lasting from 1 month to nearly 3 years, 2 short term plans, underwritten by Golden Rule Insurance Company, can provide a temporary solution that helps you get the benefits you want, for the time you need. 3.
Short-term general liability insurance is a business liability policy meant for short projects or one-off requests. If you have project-specific, seasonal or short-term work, a short-term liability policy can help protect you.
The benefit of short-term business insurance is quite simple: don't pay when you're not working and keep more money in your pocket. Short-term liability insurance gives small business owners and independent contractors flexibility and affordability.
Short-term (temporary) health insurance lasts for about 3 months and may cover prescriptions and mental health services. Learn how short-term health plans work.
Short term general liability insurance Some small business owners prefer the flexibility of paying for insurance during their busy season or from project to project with a short-term general liability policy. However, year-round coverage provides better long-term protection at a more affordable cost over time.
What is short-term health insurance? In most states, Americans can buy short-term health insurance, often referred to as temporary insurance, and is considered coverage for special situations. These plans offer limited coverage for a short duration, typically only up to three months.
What is short term health insurance? Find quick answers to common questions to ensure temporary health insurance is a good fit for you and your family.
This business plan must be utilised in submitting application in respect of the following legislative applications: New registration of short-term insurers (Section 9(1) of the Short term Insurance Act (Act)); Variation of registration conditions (Section 11(1)(a) of the Act); and Change in shareholding of insurer (Section 26(1) & (2) of Act).
A finalized federal rule will impose new nationwide duration limits on short-term limited duration insurance (STLDI) plans. The rule - which applies to plans sold or issued on or after September 1, 2024 - will limit STLDI plans to three-month terms, and to total duration - including renewals - of no more than four months.
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The Biden administration's proposal to restrict short-term health plans to three months may elevate the uninsured rate, Healthcare Finance reports. This limitation could leave individuals…
Retail insurance is a form of small business insurance that you can customize to meet the specific risks of your retail business. ... Best Short-Term Health Insurance ... Banfield Wellness Plan ...