Just accepted a new job, insurance gap?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
Topic Author
rj342
Posts: 715
Joined: Tue Apr 30, 2019 12:21 pm

Just accepted a new job, insurance gap?

Post by rj342 » Thu Feb 13, 2020 3:33 pm

At new job it is a few months before company life and disability coverage takes effect. Medical etc are day one of course.
I do have my own term life policy, but have always supplemented w some extra employer insurance since no medical exam needed.
It appears Life and disability are NOT part of COBRA, so what is a decent option to cover the gap for life? Something like term life thru AAA?
My regular ins agent has nothing simple, although he has disability options.
Does anyone have a former employer who let them continue life or disability as well as health in insurance on own dome?
Or ??

deikel
Posts: 987
Joined: Sat Jan 25, 2014 7:13 pm

Re: Just accepted a new job, insurance gap?

Post by deikel » Thu Feb 13, 2020 4:02 pm

If you were let go by your previous employer, your package might include continue insurance for a while ? If you quit, I would rather doubt it

how much time gap are we talking ? Standard Life insurance and Aflac for the gap maybe ? Special profession or run of the mill solution ?
Everything you read in this post is my personal opinion. If you disagree with this disclaimer, please un-read the text immediately and destroy any copy or remembrance of it.

runner3081
Posts: 2761
Joined: Mon Aug 22, 2016 3:22 pm

Re: Just accepted a new job, insurance gap?

Post by runner3081 » Thu Feb 13, 2020 4:54 pm

I would explore owning a term-life policy outside of an employer plan (for now and the future).

User avatar
dm200
Posts: 23133
Joined: Mon Feb 26, 2007 2:21 pm
Location: Washington DC area

Re: Just accepted a new job, insurance gap?

Post by dm200 » Thu Feb 13, 2020 5:17 pm

rj342 wrote:
Thu Feb 13, 2020 3:33 pm
At new job it is a few months before company life and disability coverage takes effect. Medical etc are day one of course.
I do have my own term life policy, but have always supplemented w some extra employer insurance since no medical exam needed.
It appears Life and disability are NOT part of COBRA, so what is a decent option to cover the gap for life? Something like term life thru AAA?
My regular ins agent has nothing simple, although he has disability options.
Does anyone have a former employer who let them continue life or disability as well as health in insurance on own dome?
Or ??
One, of several, disadvantages of employer life insurance.

It also is an increasing trend, however, that health/medical coverage for new employees does not begin on "Day One", but rather 1-2 months later. Make 100% sure that you are fully covered on Day One!
Last edited by dm200 on Thu Feb 13, 2020 5:19 pm, edited 1 time in total.

HomeStretch
Posts: 3648
Joined: Thu Dec 27, 2018 3:06 pm

Re: Just accepted a new job, insurance gap?

Post by HomeStretch » Thu Feb 13, 2020 5:18 pm

Consider term life and disability policies outside of your employer unless (since you mentioned no medical exam) you have a medical or other issue that makes non-employer coverage too costly or unavailable to you. The workplace plan premiums can really increase in cost every 5 years or so as you cross into another age-band for determining premium cost.

It’s pretty easy to get a quote on 20-30 year level-premium term life insurance online at selectquote.com (who I used and liked) and other sites mentioned in this forum like term4life.com and Zander.com.

cmr79
Posts: 52
Joined: Mon Dec 02, 2013 4:25 pm

Re: Just accepted a new job, insurance gap?

Post by cmr79 » Thu Feb 13, 2020 5:57 pm

It's probably a good time for you to get an independent disability policy as part of your long-term insurance plan (assuming, as others have mentioned, that you don't have a prohibitive pre-existing condition) to protect yourself both now and if your job situation changes in the future. Disability is not cheap, but I agree with the above posts that relying exclusively on employer disability insurance is risky due to different (and generally unfavorable) definitions of what it means to be partially or fully disabled.

If your current term life policy is inadequate such that your family would be financially devastated if you were to die tomorrow, you probably should purchase more--again assuming no prohibitive pre-existing medical problems, this insurance is relatively cheap. Less gray area in definitions of death, so if your family would be inconvenienced-but-not- devastated if you died with only your current term policy but would be adequately protected when the employer coverage kicks in, I might defer purchasing more term life now. The chances are probably low enough that you'd use it to justify the hassle.

Just my 2c.

Topic Author
rj342
Posts: 715
Joined: Tue Apr 30, 2019 12:21 pm

Re: Just accepted a new job, insurance gap?

Post by rj342 » Thu Feb 13, 2020 6:39 pm

runner3081 wrote:
Thu Feb 13, 2020 4:54 pm
I would explore owning a term-life policy outside of an employer plan (for now and the future).
I have one, but when I re-upped a few years ago the sleep apnea jacked up price so I do depend in part on thru the employer too.

Topic Author
rj342
Posts: 715
Joined: Tue Apr 30, 2019 12:21 pm

Re: Just accepted a new job, insurance gap?

Post by rj342 » Thu Feb 13, 2020 6:47 pm

The medical is supposed to be in effect from day one, but the fully company paid STD and LTD dont take effect for 6 months. Nor the company paid Life.
I'm supposed to get full info packet Monday or Tuesday via FedEx.
Will be giving my 2 week notice at current employer tomorrow or Monday. Planning on up to a month of COBRA medical to account for the week or so off in between, depending where my end date falls vs coverage month.

Katietsu
Posts: 2908
Joined: Sun Sep 22, 2013 1:48 am

Re: Just accepted a new job, insurance gap?

Post by Katietsu » Thu Feb 13, 2020 6:52 pm

Some workplace life insurance plans have a guaranteed right to convert to a private policy. Would look into this first as it might be better than your standard rate on a new policy with a pre existing condition. I have not experienced this same guarantee for disability though.

fuddbogle
Posts: 40
Joined: Fri Jun 21, 2019 8:35 am

Re: Just accepted a new job, insurance gap?

Post by fuddbogle » Thu Feb 13, 2020 7:00 pm

rj342 wrote:
Thu Feb 13, 2020 6:47 pm
The medical is supposed to be in effect from day one, but the fully company paid STD and LTD dont take effect for 6 months. Nor the company paid Life.
I'm supposed to get full info packet Monday or Tuesday via FedEx.
Will be giving my 2 week notice at current employer tomorrow or Monday. Planning on up to a month of COBRA medical to account for the week or so off in between, depending where my end date falls vs coverage month.
Last I looked you had 2-months (or 60 days) to pay your cobra bill. You'll know long before then if you need to pay it or not (if that 2-month window is still the case).

Just looked, it's 45-days to make the payment.

User avatar
dm200
Posts: 23133
Joined: Mon Feb 26, 2007 2:21 pm
Location: Washington DC area

Re: Just accepted a new job, insurance gap?

Post by dm200 » Fri Feb 14, 2020 8:59 am

fuddbogle wrote:
Thu Feb 13, 2020 7:00 pm
rj342 wrote:
Thu Feb 13, 2020 6:47 pm
The medical is supposed to be in effect from day one, but the fully company paid STD and LTD dont take effect for 6 months. Nor the company paid Life.
I'm supposed to get full info packet Monday or Tuesday via FedEx.
Will be giving my 2 week notice at current employer tomorrow or Monday. Planning on up to a month of COBRA medical to account for the week or so off in between, depending where my end date falls vs coverage month.
Last I looked you had 2-months (or 60 days) to pay your cobra bill. You'll know long before then if you need to pay it or not (if that 2-month window is still the case).
Just looked, it's 45-days to make the payment.
Yes - while this is technically true, and probably safe most of the time, I have always chosen to pay COBRA right away. My concerns were that my previous employer would or might mess up and not credit me on time retroactively - and I would end up in a huge mess if I had big medical expenses. I know that choice cost me a month or so extra in premiums -- but I believed that was worth the risk. In one case, especially, with a very small previous employer that had a very incompetent HR person and that I left that employment in a situation where that employer was (unjustly I believe) very, very angry at me.

Dottie57
Posts: 7768
Joined: Thu May 19, 2016 5:43 pm
Location: Earth Northern Hemisphere

Re: Just accepted a new job, insurance gap?

Post by Dottie57 » Fri Feb 14, 2020 9:38 am

dm200 wrote:
Fri Feb 14, 2020 8:59 am
fuddbogle wrote:
Thu Feb 13, 2020 7:00 pm
rj342 wrote:
Thu Feb 13, 2020 6:47 pm
The medical is supposed to be in effect from day one, but the fully company paid STD and LTD dont take effect for 6 months. Nor the company paid Life.
I'm supposed to get full info packet Monday or Tuesday via FedEx.
Will be giving my 2 week notice at current employer tomorrow or Monday. Planning on up to a month of COBRA medical to account for the week or so off in between, depending where my end date falls vs coverage month.
Last I looked you had 2-months (or 60 days) to pay your cobra bill. You'll know long before then if you need to pay it or not (if that 2-month window is still the case).
Just looked, it's 45-days to make the payment.
Yes - while this is technically true, and probably safe most of the time, I have always chosen to pay COBRA right away. My concerns were that my previous employer would or might mess up and not credit me on time retroactively - and I would end up in a huge mess if I had big medical expenses. I know that choice cost me a month or so extra in premiums -- but I believed that was worth the risk. In one case, especially, with a very small previous employer that had a very incompetent HR person and that I left that employment in a situation where that employer was (unjustly I believe) very, very angry at me.
I waited with cobra. But ended up visiting the Dr office which demanded upfront coverage with no detectable insurance. Ittook a long time to get the insurance to cover the visit and get reimbursement from Dr.

User avatar
dm200
Posts: 23133
Joined: Mon Feb 26, 2007 2:21 pm
Location: Washington DC area

Re: Just accepted a new job, insurance gap?

Post by dm200 » Fri Feb 14, 2020 10:03 am

I waited with cobra. But ended up visiting the Dr office which demanded upfront coverage with no detectable insurance. Ittook a long time to get the insurance to cover the visit and get reimbursement from Dr.
Yes - a reason to pay COBRA right away!

Post Reply