Health insurance is not the best topic to think about. In fact, most of us would rather not think about this topic at all! I didn’t make that bit of statistic up. A survey by the Insurance Information Institute found that a third of all American families with a new baby don’t take the time to update their life insurance policies!
What does that information show you? Simple: Few Americans really think about health insurance, even if they already have a policy. But what if you plan to retire? Isn’t it time to think about health care costs, health insurance coverage, and how you can benefit from COBRA?
Forget the snake. The COBRA we are talking about here is not. Federal laws allow you to keep your health insurance with your former employer under COBRA.
Here are three reasons that make COBRA a very good option:
1. Cost. Insurance, health and finances are threatened when you leave your employer. Whether the decision is voluntary or not, COBRA gives you the option to keep your health insurance from the employer you’re leaving for up to 18 months. Here’s the kicker: you have to pay 102% of the premiums. On the other hand, when you consider that you keep the health insurance benefit, it’s not that bad at all. Just think of the risk of going without a policy while looking for a cheaper provider or getting a new job with health benefits.
2. Pre-existing medical conditions. COBRA effectively eliminates or reduces the risk of a new insurer putting your pre-existing medical condition in the exclusion clause of your policy. As it works with providers, if you already have a serious medical condition, no private insurer would want to touch you. COBRA offers you a way to maintain coverage even then.
3. Flexibility. When you change jobs or careers, cost is your main health concern. Insurance, health, and finances are a lot to deal with at once, especially without regular paychecks. With COBRA you have at least 105 days to collect the money for the first premium payment. Nevertheless, the cover starts the moment the cover of your group insurance is lost.
Whether you admit it or not, COBRA provides you with relief that you can use at a time when you need it most. COBRA aims to protect you from further losses in an already difficult place. So take advantage of the opportunity to never run out of coverage.