Why Is Short Term Health Insurance Cheaper? 
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 do n'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 . 