Getting laid off from your job can trigger a myriad of emotions. There are often important financial considerations to make during this period of time, but the number one investment step for someone to take who gets laid off is to review all of your group insurance benefits at work and determine the best course of action for this important foundation of your overall financial plan.
You should immediately make any doctor and dentist visits for you and your family before you officially terminate from your company. Another smart idea is to assess how close you are to your deductibles year to date and potentially schedule any surgeries that are necessary, especially if you are getting close to the end of the year. Most large companies will allow you the opportunity to continue your coverage under COBRA, but if you work for a company of less than 20 employees you may only be eligible for state continuation. You could also consider switching over to a partner or spouse’s coverage, but this analysis should come under a microscope during this transition.
Your company may give you other insurance benefits such as life insurance and disability insurance. You will want to determine whether or not these benefits are convertible to individual policies. If you don’t have individual coverage in these two areas and your health has changed dramatically since you started with your employer, then this question in your overall financial plan will become even more crucial.
Remember, the biggest investment you will ever have in your lifetime is your ability to earn an income. This is why if you ever get the pink slip, closely analyzing all of your insurance benefits at work will be investment step number one.
Should parents have any say in how a large financial gift to adult children is spent? Why or why not?