Instead of a computer or a car, parents looking for a useful gift for a new college grad may want to consider health insurance.
New college graduates and their parents are often surprised to learn that many health insurance plans stop providing coverage to adult children through a parent’s plan even when they are living at home.
Typically, most adult children who are students will lose their coverage when they attain a certain age, graduate or are no longer attending school on a full-time basis. Since most of these new college graduates won’t have coverage until after they have found a job, many find themselves falling through a gap in coverage.
The number of young adults who fall into this category can be significant. According to a 2002 Census Bureau report, 18-to-24-year-olds are the least likely age group to have health insurance coverage.
Some find an effective way to address this need is with a type of product called temporary or short-term medical insurance. Such policies are designed to fill short gaps in health insurance coverage and usually cover periods ranging from one to six months. Exact length of coverage may vary by...