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Obtaining Insurance After a Job Loss

posted by on Tuesday, November 10, 2015

Securing Insurance After a Job Loss

Losing a job is traumatic enough without having to worry about replacing your insurance benefits. It is important to know that your benefits can be salvaged, even if you are not hired by a new company right away. Know your options to ensure you maintain coverage while you are unemployed. 

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 maintain 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 your 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. 
  • 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 available health insurance: 
    • 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 and some states (Iowa included) require COBRA to be exhausted before enrolling in any high-risk plan.  
    • State High Risk Health Insurance Pool: This is still a viable option for some states, but the premiums tend to be much higher than the individual or family policies that can be purchased. This may also be a viable short-term option if you do not qualify for COBRA.
    • Individual/Family Health Insurance: Purchase insurance through a carrier, similar to how your employer did for you and your co-workers. 
    • Short-Term Health Insurance: This option operates the same as individual/family coverage, but only for a specified amount of time to keep premiums low. Although this is an option, it is a not credible coverage under the new Affordable Care Act requirements and could result in additional taxes owed. 
    • 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. 
    • 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. 

TrueNorth is here for you every step of the way

Get your coverage through TrueNorth so you can rest assured that the things and people you love are protected and accounted for. Call us at 319-364-5193, and a personal insurance agent will gladly look over your plan.  Find out more about our personal solutions and obtain a quote for home and auto insurance at www.iTrueNorth.com

TrueNorth also offers businesses of every size comprehensive solutions to meet their business needs and those of their employees.  If you are in need of business solutions or are looking to start a business of your own, please call TrueNorth.  Our Employee Benefits division would be happy to assist you in providing the well-being of both you and your staff.