Short-term health insurance as the name suggests is for a short term or period. As hospitalization cannot be predicted, it may be once in a year, three times a year or none at all. Short-term health plans become useful in such situations. The insurance is however lesser than the other plans and it is only for a short period that is six months to one year.

If a person is hospitalized between these period, then the whole amount will be paid by the insurance company itself. If not, the cash value will be lesser than the premium or may be equal to it. You may receive a certain amount after the period of time suggested in the policy. In certain cases the insurers give options so as to increase the period of time for maybe another six months. This will also help to make use of the policy in the right way. There are also instances where the insurance can be transferred to another family member or friends if the policy allows it to.