CII Certificate in Insurance - Healthcare Insurance (IF7) Practice Test

A 'short-term health insurance' policy is designed primarily to offer temporary health coverage that provides limited benefits. This type of insurance is often utilized by individuals who may be between jobs, recent graduates, or those waiting for other health coverage to begin. It is not meant to serve as a comprehensive health insurance plan; rather, it addresses gaps in coverage for a limited period, usually ranging from a few months up to a year.

These policies typically cover basic medical needs and unforeseen health issues but do not usually cover essential services like preventive care, maternity care, or prescription drugs, and they often have higher deductibles and fewer benefits compared to traditional health insurance plans. Furthermore, short-term plans may also exclude pre-existing conditions and have lifetime maximum benefits.

While it is important to address all aspects of health insurance, the primary function of short-term health insurance is to provide a temporary safety net with restricted benefits to manage immediate healthcare needs rather than long-term or comprehensive health needs.