Life & Health Insurance/Short-Term Insurance


Hello Mr.McCollough

I am currently looking into purchasing a short-term health insurance policy, as an alternative to my university's health plan. One question I have about this policy is that there is a section where it talks about max out of pocket limit and lifetime maximum.

The out of pocket max is set at $1,000.00, the deductible is $250.00 and co-insurance is at 20% and the lifetime maximum is $750,000.

From research that I have done it means that after I have met my deductible and spend $1,000 out of my own pocket the insurance company will pay for everything else with no cost to me up to $750,000. Is this correct?

Also when they say co-insurance is 20% do they mean I pay the remaining 80% or 20% of cost?

Hi Sean,
   You have a good grasp on how the out of pocket maximum works. That $1,000 equals the 20% you pay once the deductible has been met. Most plans no longer have a lifetime maximum, per Obamacare, but short term plans operate under different rules.

J.R. McCollough  

Life & Health Insurance

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John (J.R.) McCollough


I can answer questions pertaining to Health and Medicare insurance for individual and/or family coverage, students, retired/separated military members, small businesses under 20 employees and seniors in the United States. Additionally, I can assist people in understanding their options if they've been turned down for insurance and do not know about what state and federal programs are available.


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