If you are suddenly handed the pink slip, you might have enough saved for your day-to-day expenses. However, with your job, employer-sponsored health insurance goes too, which might be a bigger worry for you. Short term health insurance may provide you with just the coverage you need during this tough time.

Best for new graduates, those in between jobs, and those whose employer-sponsored insurance will soon become effective, COBRA insurance alternatives offers a great option for the short term. It is also used extensively by part-time employees who don’t have employer-sponsored insurance, and early retirees waiting for Medicare to become effective.

Usually, when one loses his/her job, COBRA insurance is offered as an option. COBRA insurance offers health insurance with long term health benefits, but at a higher rate than employer-sponsored insurance and sometimes, alternatives to COBRA insurance as well. That makes temporary health insurance a very desirable option.

If you are put off by the lengthy underwriting processes characteristic of long term insurance, alternatives to COBRA insurance offers just the opposite experience: simple and easy underwriting, with plans becoming valid as early as the next day. If you have any pre-existing conditions, though, they will not get health insurance for unemployed coverage.

When you purchase a health insurance for unemployed plan, you will be covered for any illness or injury that did not exist earlier, as defined by the look-back period. You will be covered for inpatient and outpatient care including surgery, diagnostic examinations and prescriptions, and also for ambulance services. Your plan might also cover scheduled doctor visits.

As with any temporary plan, alternatives to COBRA insurance does not cover pre-existing conditions, pregnancy, cosmetic surgery, and eye and dental care.

A range of deductibles, co-pay, and benefit maximums are offered by short term health insurance plans. A business owner, for example, may choose a different plan than a student waiting for her first job. Short term insurance benefits also vary by state.

When you purchase alternatives to COBRA insurance, you might be tempted to continue on it for a long time. However, it is designed for short periods, and you must ideally not exceed a year or so in short term coverage. If your insurance situation is uncertain, you can renew the plan monthly, for the maximum period specified in the plan.

Dan Miller enjoys writing about temporary health insurance