Considering COBRA - What Coverage Should I Keep?

General Discussions Forum
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Hello guys

I’m leaning towards opting for COBRA coverage after leaving my job, and I have a few questions about what’s involved:

  1. I plan to get my eyes and dental checked before I leave my job. Do I have to keep those coverages under COBRA, or can I opt for just the health insurance part?
  2. Are there other benefits I should consider keeping when I leave my job? I already have Aflac coverage. What about Short-Term Disability (STD), Long-Term Disability (LTD), or Legal Insurance?

Any advice on what to prioritize or any insights into managing these benefits would be greatly appreciated :wink: :wink: :wink:

2

Focus on the coverage that best meets your present and future needs. Assess the costs and advantages of keeping each type of insurance, and think about how these choices will affect your overall financial situation.

3

COBRA and Optional Coverages:

COBRA for Health Insurance: COBRA is a federal law that allows you to extend your employer-sponsored health insurance for a limited period, typically 18 months, after leaving your job. However, be aware that you’ll be responsible for the full premium, which can be quite costly.

Vision and Dental Coverage: Vision and dental coverage are often optional under COBRA. Compare the cost of continuing these coverages with the cost of finding new standalone plans, which might be more affordable.

Short-Term Disability (STD) and Long-Term Disability (LTD): These coverages are usually provided by your employer. If you choose not to continue them under COBRA, consider the expense of purchasing individual policies.

Aflac: Aflac provides supplemental insurance that may be optional under COBRA. Evaluate the benefits of this coverage against its cost.

Key Considerations:

  • Cost: COBRA premiums can be significantly higher than group rates.
  • Coverage Gaps: Be aware of potential gaps in coverage between the end of COBRA and starting a new job or obtaining new insurance.
  • Health Needs: Assess your current and future healthcare needs to choose the most suitable coverage.
  • Open Enrollment: Look into new health insurance options during open enrollment periods.
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Ultimately, the decision depends on your individual circumstances. Consider your health, financial situation, and the cost of COBRA versus other options.