December 6, 2023

Are you considering new job opportunities? If so, you are not alone.The average length of time an employee stays in a job just over four years, so people of all ages are likely to change jobs at least a few times in their lives. Whether it’s a voluntary transfer, a full-time to part-time switch, or a layoff, it’s a big event in your life that has financial consequences.

Have you considered what happens to your insurance coverage while you work?

Here are some of the most common questions employees ask about these benefits, and what to expect as you pursue your next opportunity.

What happens when you leave an insured job?

If you get your insurance through somewhere other than your employer, such as your spouse’s workplace or directly from an independent insurance agent, nothing changes for you. You will keep your current policy. But when you start your next job, it might be worth taking a look at their benefits to see how they compare.

Some employers pay full life and disability insurance for their employees, or at least heavily discount it. Seeing what your new job offers could be an opportunity to get more coverage for less out-of-pocket costs.

If you only have employer-sponsored plans, you should ask Human Resources or Benefits what happens. Often, the group life or disability insurance you got through your job can be lost if you change jobs, lose your job, or retire.

Some policies may be portable, meaning you can bring them over to your new job. Check with Human Resources to see what options are available to you. If they let you keep your plan, you’ll have to switch them from a group policy to an individual policy, which may increase the price. As part of your benefit package, you must also pay premiums for any amounts paid by your former employer on your behalf.

What questions should I ask when choosing a new insurance plan at work?

Starting a new job can be exciting. In addition to your new paycheck, consider what insurance benefits you can get now. Ask these questions to best understand which programs are best for you.

what insurance benefits do you offer?

Options include health, dental, life, disability, dismemberment, accident or sickness insurance, or other reimbursement plans. Not all company benefits are created equal, so it’s important to have a thorough understanding of what’s on offer.

Can I view a summary of life insurance plan options?

Your new employer might advertise life or disability insurance, but what does that mean? Is the premium affordable? Is it enough to actually help you or your family if the worst happens? How long do you have to wait to be covered? Is a medical examination required?

Life insurance purchased through a job is a great benefit, but coverage is usually only one to two times your salary, or a fixed amount, such as $50,000. While this may sound like a lot of money, you have to consider how long your loved one will need to live off the money to do well financially.

Get details of plan options before you commit, and consider purchasing an individual life insurance policy that you own. That way, it will always be with you no matter what your job is.

Is there a registration period?

Most employers will give you this many days to sign up for a plan, whether it’s 30 or 90 days. It is usually coordinated with when you are eligible to start. Otherwise, they may let you start when the next registration period opens if it’s coming up. Ask when it is and what to do if you miss it; you may be forced to wait for the next opening period.

you never know when you need Insurance. Having an individual life or disability insurance policy helps ensure that you are protected for any period of coverage. The same company you use for home or auto insurance may also offer these other policy types.

How do I pay my premium?

Some insurance plans offered through work are at least partially covered by your employer, but this isn’t always the case. They can offer a variety of plans, and only the plan with the lowest cost and the lowest coverage is free. Whatever it costs, ask how it will be paid for. If it comes directly from your paycheck, is it monthly, weekly or some other frequency?

Employers often offer a variety of coverage options, and you may only be willing to pay for the less expensive plan initially.Although only you It’s okay to decide how much coverage you need, considering how you can afford more coverage over time. After making more money at your new job, what are your plans for next year?

With an annual policy review, you can compare your insurance needs to your budget and goals to get more coverage each year. With the employer covering at least some of the cost of the policy, this is a great opportunity to increase your coverage with less out of pocket.

Important: Every workplace handles insurance differently. This is true both for those who leave the company and for those who enter the company as new hires. Learn the facts about insurance plans to stay strong throughout your career.