Debt Consolidation Credit Counseling In Phoenix

Carmen does not know how long she may be without insurance. She is aware what kind of financial burden she could insure if she goes without. But, after loseing her job as a sales person she is forced to look at all the options she has open to her.

Carmen knows she has the COBRA insurance option. She also knows how expensive it can be. COBRA mandates that an employee can keep their health insurance for up to 18 months if they become unemployed for any reason.

The reason COBRA is expensive is due to a few things. First, you pay the total premium (what you had paid, plus the employer contribuation). Second, they often add administrative fees on top of that.

Before opting out of COBRA you should loo at your health. Carmen has high blood pressure and has to take 2 medicatins. She is also expected to make regular visits to her doctor. Her husband however is very healthy!

Most temporary medical plans will not cover pre existing conditions. For this reason Carmen should try to keep her COBRA insurance. But, there is no reason she shouldnt look for something more affordable for her husband.

Before committing to a temporary health insurance plan there are a few factors to closely consider. Temporary health insurance can be an excellent alternative, but does have some drawbacks.

1. What if you only purchase 6 months and then you find yourself needing longer. You will either be srambling around for more or you will have to reapply for the same one. This may not be something you care to deal with.

2. Temporary health insurance does come with exclusions. It is not going to cover any pre existing conditions. Hence, the reason it is not a good idea for Carmen. If her husband develops an illness and then you have to extend the temporary insurance he will no longer be covered for that illness.

3. Temporary health insurance will not cover things like office visits. You will have to pay for that out of opocket due to the high deductible you have to meet. This insurance can keep you out of financial debt incase something really costly happens however.