By Susie Souza
Easily Remain Insured
There are several benefits that may be taken away when you lose your job. Some of the most important are life, disability and health insurance. Here’s how to obtain these benefits after a job loss:
Life Insurance: Since most company policies are term life insurance products, you will lose your policy if you no longer work for the employer. To avoid losing this coverage, purchase your own term life insurance policy that is portable from job to job.
Disability Insurance: Purchase a Disability Insurance plan before losing your job. If you have your own policy, you will never lose coverage as a result of a job loss. You will also never pay taxes on the money that you receive from the policy because you are paying the premiums.
If you lose health insurance coverage from your employer, consider purchasing a High Deductible Health Plan (HDHP). Under these plans, you have a higher than typical deductible with lower premium payments. When you meet your deductible, all of your medical services and prescriptions will be covered at 100 percent.
Health Insurance: To avoid a gap in coverage, start looking for replacement health insurance immediately upon losing your job. The following are some options for affordable health insurance:
o COBRA: You can elect to continue your employer’s health coverage through the Consolidated Omnibus Budget Reconciliation Act (COBRA). You pay the premiums, and they are generally higher, so make this a short-term solution. Also, COBRA coverage is generally available for only 18 months.
o State High Risk Health Insurance Pool: If you are turned down for individual health insurance after a job loss due to a pre-existing condition, your state may offer a high risk insurance option. This may also be a viable short-term option if you do not qualify for COBRA.
o Individual/Family Health Insurance: Purchase insurance through a carrier, similar to how your employer did for you and your co-workers. There may be pre-existing condition clauses and medical exam requirements.
o Short-Term Health Insurance: Coverage operates the same as individual/family coverage, but only for a specified amount of time to keep premiums low.
o Group Insurance for Organization Members: Check with organizations that you are a member of to see if they offer group benefits. Although organizations will not typically pay for coverage, you may be eligible for a group discount.
o Discount Medical Cards: This is not an insurance plan, but for a monthly fee, you can obtain a membership card that will allow you to receive discounted services at the doctor’s office and hospital.
We can help you remain insured in the event of a job loss. Please contact us today to learn more.