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Should You Opt For COBRA Or Buy Individual Health Insurance?
COBRA requires employers to allow you to stay on their health coverage for up to 18 months after you have stopped working for them. For most families, this coverage acts as a safety net that covers them until they are able to sign up for different coverage. Individual health insurance, on the other hand, is private insurance that you purchase directly from the insurance company. Whether you are employed or out of work, you will continue to be covered as long as you keep paying the premiums.
It is hard to say if individual health insurance is better than COBRA, or vice versa, because each person's situation is unique and both types of coverage have benefits and disadvantages. Under COBRA, you will keep the same exact coverage you had under your employer. The difference is that your employer is no longer footing part of the bill which leaves you responsible for the full cost of the insurance. This can get quite expensive and you will be unable to change your insurance plan to something that costs less. Additionally, the coverage is only available for a limited time.
With individual health insurance you can customize your policy to get exactly what you need which could result in cheaper premiums than COBRA. And, as mentioned before, as long as you pay the premiums you will continue to be covered for the rest of your life. The biggest disadvantage to this option is, if you have preexisting conditions, you may not be able to secure insurance. This, of course, depends on the type of preexisting condition you have but it is quite possible that you would end up being rejected outright or spending more on your insurance than you would with a COBRA policy. The best way to figure out the best insurance options for you is to speak to a knowledgeable health insurance agent who can help you find the policy that fits your specific needs.
