Health · Chapter 18 · Renewability
Nonrenewable / Period-of-Time Policies
Definition
Nonrenewable policies are temporary (in force one year or less) with NO renewal option — used to bridge anticipated coverage gaps. Period-of-time (term) policies, e.g. short-term major medical, run only for a stipulated term (such as six months); when the term expires, so does coverage.
Example
A six-month short-term policy: month 6, coverage simply ends — the insured must find new coverage (employer plan, ACA marketplace, etc.).
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms