So we are in the “R” word. That’s right we are now officially in a recession. Many are out of work. What do you do about your health insurance? Many people try to go without insurance. You are entitled to COBRA, which allows you to keep your corporate benefits at your expense. Where people get confused on this is they are accustomed to their company paying for most of it. Now you assume the entire cost, plus a 4% administrative fee. Now, this is an expensive option. If you have some pre-existing conditions it might be your best option. If you do not have and “pre-existing” you have several options.
1) Temporary Insurance- Temporary insurance is good if you are between jobs. They are normally catastrophic in nature so there are no doctor visits, but you are protected against the “big one”. They are normally good for six months. They expire at that time so you then either need to look for a new one or some of them can be renewed for an additional six months.
2) Individual Health Plans- These are becoming more common. They were originally designed for the Self-Employed, but now with many companies cutting back on health insurance. More and more people are being attracted to them. Here is the great thing about these plans, you never have to worry about losing your health insurance if you lose your job. You are not “married to your job” because of the benefits. Now you do have to medically qualify for most of these plans, but they can be taylored often times to meet your needs.
3) Guarantee issue plans. There are some of these out there, but be careful. There are a lot of “discount plans” out there. They are NOT INSURANCE, and are not sold by licensed insurance producers. There is very limited benefits in these types or plans. There are some very good Gurantee issue plans on the market. My favorite is from the American Medical and Life Insurance company (http://www.amlico.com/). They have a plan called AIM Health Plan. You can get details on that plan from my site at www.aimhealthplans.com/ericwilson. I have seen all of those plans, and it is probably the best one on the market.
Eric Wilson can be reached at 815-372-1363