Most Americans are covered under some type of medical insurance, either through an employer-sponsored plan, an individual plan, or a government-provided plan.

When someone changes jobs and does not yet qualify under his/her new employer's group plan; or when a dependent child no longer qualifies under a parent's plan, either because he/she reaches an age of maturity or because he/she no longer qualifies as a full-time student, there can be gaps in your insurance coverage.

In the past, you had the option of covering these gaps by paying full premium costs to continue a prior medical plan, or by purchasing a full-cost individual medical insurance plan. Now individuals may qualify for a third option - a Short Term Medical Policy. These policies typically offer coverage ranging from 30 days to six months. They are not meant to provide coverage for a long period of time, therefore, the premium costs are very competitive when comparing to other available options. This allows an affordable alternative for protection when long-term coverage is not needed.

Like most medical plans, the covered individual must satisfy a deductible before benefit payments will begin. Ranges of deductible plan options are available. After satisfying the deductible, the insurance plan will pay the bulk of covered medical costs, with the patient paying a coinsurance as selected and defined in the plan.

In some areas, an individual medical policy or a short-term medical policy may provide benefits using a managed care program, such as an HMO (Health Maintenance Organization) or a PPO (Preferred Provider Organization). These plans may be able to offer increased benefit options or lower cost than traditional plans.