| By :
Kent Kingsley
Whether you have lost your job due to the economy or you left to start your own business, one of your top concerns and goals should be keeping adequate health insurance coverage. If you are in this situation you may find yourself low on funds but you cannot afford to go without health coverage. If you think you are broke now, without proper coverage one claim could send you to bankruptcy. The type of insurance you choose for your family is just as important as keeping it. The question many have at this stage is should they take the COBRA coverage or buy an individual health insurance policy. 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 insurance have benefits and disadvantages. With COBRA you simply keep the same coverage that you had with your previous employer. The difference is that now you are responsible for the full cost of the insurance whereas before your employer covered 50-100% of the premium. 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. Often times you are able to customize your individual health insurance policy to get what you need which can result in lower premiums than COBRA would be. And, as mentioned before, as long as you pay the premiums you will continue to be covered for the rest of your life. The disadvantage of this option is that you may not be able to secure insurance if you have a preexisting condition. 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. To determine the best option for health coverage for you the advice of a professional health insurance agent should be sought to help you find a plan that meets your specific needs.
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