Is Cobra The Right Way To Ensure Yourself While You Are Unemployed?
Once you become unemployed you may believe that your only insurance option is to
maintain the COBRA benefits that are being extended to you by your former employer. Since your decisions need to made relatively quickly about using this extended coverage or choosing another option, as soon as you become unemployed you will have some quick decisions to make.
The best way to find out about your COBRA options and the additional cash that the government will offer you to help you pay for this insurance coverage can come from your local unemployment office. This office can offer you the information you need to begin to make your initial decision.
While most companies offer their employees good benefits, when it comes to COBRA you will be paying the entire premiums yourself and this will usually more than double the amount that you are paying for your health insurance benefits and many people struggle to pay these premiums on their lesser salary. If you are relatively healthy or have other insurance options for your family members then you may want to consider just getting a private pay catastrophic health insurance plan to help you maintain health insurance while you are looking for a job. Many insurance companies even offer a short term or temporary health insurance option which may be more cost effective and will still help you to stay covered just in case.
Unfortunately, it is likely the only option will be presented with is COBRA , but there are many other options available to you and choosing COBRA may seem the easy answer you really need to do the leg work to determine if this is the best option you have. Many individuals and families decide to withdraw from COBRA and find a private insurance plan that costs them less and still meets their needs during the period they are unemployed.
Looking at all the options can be a little time-consuming, especially when looking for another job at the same time, but it is important to make an informed decision and choose wisely. We hope you will be unemployed for only a short period of time, but in today's economy no one really knows how long unemployment may last, so make sure you choose a policy with an insurance premium you can live with for a maximum of a year in case it is needed for that long.