An extension is what it's name states: in the case of health insurance, it is an extension of health insurance beyond the termination of the policy for a set period of time. During the extension, the insurer continues to cover claims for health conditions for which it was paying claims during the existence of the policy. An extensiosn does not cover medical conditions which appear after the termination of the health insurance policy.

Extensions used to be more common than they are today.

Extensions didn't receive a lot of publicity because insureds didn't pay extra for them. In a sense, they were free to the insured because no additional premiums had to be paid during the period of the extension.

An extension is different from a continuation of a policy under COBRA. Under COBRA, a health insurance policy continues in force for a period of time beyond which it would otherwise have ended. A COBRA extension only stays in force as long as the premium continues to be paid. Unlike the extension discussed in this article, COBRA covers all health conditions covered by the plan, not just conditions which existed during the term of the original health insurance policy.

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