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Reasons for Short Term Health Insurance. The most common type of health insurance is that which lasts for an extended or indefinite amount of time. However, there sometimes arises a need for short term health insurance. This is insurance coverage that only lasts a specific period of time before expiring. Temporary health insurance is commonly used by individuals who are between jobs but still require the benefit of insurance coverage. Then the coverage ends when a job with benefits is obtained and new coverage may begin.