There’s something that can cut deep into the benefit of changing jobs.
Before you actually look for new employment, make sure you understand the benefits you currently have, like health insurance, and how those will be affected. Health insurance is a complicated thing so you have to be aware of how a job change changes your status. In a recent survey, almost a quarter of the respondents said that their insurance benefits and out-of-pocket expenses worsened their financial situation more than anticipated.
That survey is cited in an article at the NAIC (National Association of Insurance Commissioners) consumer site, Insure U. Job Seekers Beware: Prospective employer’s financial offer is about more than salary is part of some very helpful resources on Job Change that would be good to keep in mind.
NAIC Recommendations For Job Changers
To avoid surprises, consider the following before saying goodbye to a current employer:
- See if your current group life insurance plan has a conversion privilege. If so, you may have up to 31 days after leaving your job to apply for coverage.
- Find out if you can convert current group disability coverage into a portable disability plan that stays with you from job to job.
- If your job change includes a move, check your homeowners’ policy to make sure personal possessions are covered in-transit. If not, consider a trip transit or floater policy.
- Insurance rates and coverage vary greatly from state to state. Before a move across state lines, contact your state insurance department so you know what to expect.
- Before accepting a new job, compare your current health plan with plans offered to assure the available mix of deductibles, co-pays and coinsurance will cost-effectively meet your needs.
- Find out if your new employer has a mandatory waiting period before health insurance coverage takes effect. If so, consider a short-term plan through new health insurance exchanges to cover the gap. More than 10% of NAIC survey respondents said their overall financial situation was worsened by issues related to “the effective date of new health insurance coverage.”
- If you have children and anticipate a coverage gap, you may also look into government-sponsored programs such as Children’s Health Insurance Plans (CHIP). These plans may provide coverage at low or no cost.
- Finally, if you’re thinking of starting your own business and plan to use your personal car to make deliveries or visit clients, consider business auto coverage. If you’re involved in an accident while conducting these tasks, most personal auto policies won’t cover the losses.
One More Thing To Think About
Before you decide to search for a different job, get acquainted with all the job search resources on our site. You don’t have to explore each one, but the more you know about what you are getting into, the better prepared you will be for making that switch. Something as elementary as health insurance gets missed by many in the promise of a bigger paycheck, so plan carefully.