Mind the Insurance Gap

College graduation means the end of studying, exams, term papers and grade-point averages.

Now grads can start worrying about the real stuff. Things like a job, a place to live, paying off student loans -- and making sure they have health insurance.

Health insurance may be the last thing on everyone's minds on graduation day. But for young adults who were under their parents' insurance, it's almost a certainty that graduation day means they no longer qualify for coverage.

If you're a grad, or the parent of a soon-to-be grad, it's important to make sure you or your loved one is covered between the time of graduation and the time of starting a new job. Even if that job is in the near future, a lot could happen between now and then -- and a broken leg or injuries from a car accident could be very costly during this gap in coverage.

The solution is short-term health insurance -- policies designed exactly for people in that situation. They're perfect for graduating students, or for those who lose a job and can't afford COBRA coverage provided by their employer while they seek new employment. Short-term policies also make sense for workers who retire a few months before Medicare coverage takes over, or for those hired for a new job but who must wait a few months before qualifying for a company health care plan.

Short-Term Security

You can purchase a policy for one month or up to six months. Then, if you still don't have a permanent policy, you can reapply for your policy for another six months at the end of the first term. After that, you must find permanent coverage. But the upshot is that if you do get that new job, you can cancel at any time with no penalty.

These short-term policies cover hospitalization and surgeries, as well as doctor's visits and other professional services. But the real benefit is knowing that in the case of extraordinary medical problems there is extensive coverage available.