Why Is Short Term Health Insurance Cheaper?

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   Neil Steinman

   Owner, Orange County Health & Life Insurance,

   Regardless of what type of insurance, if you're asking why it's priced the way it is, the answer is always this: it's based on the actuarial data. Why is life insurance less expensive for women? Because the data shows they live longer than men. Why is short term insurance less expensive? Actually, I don't know the specific actuarial data, but my guess is that the likelihood of your using insurance within 6 months is far less than if you had the insurance for many years.

   Answered on May 8, 2014

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