Insurance and Changing Jobs
So, you got the job. You know, the one you’ve been hoping would push you into the next phase of your career. It comes with a large salary jump and possibly a shorter commute from home. But have you researched all the insurance options with your new company? And when exactly are you eligible for these benefits? Whether you’ve landed your dream job or you’re still early in your career, it’s essential to know the ins and outs of your insurance plan before settling in to your new office.
Types of benefits
Today, choosing a health insurance plan is one of the most expensive, but necessary, decisions an individual or family can make. Upon your initial job change, you may need to choose a short-term health policy to keep you covered until you are eligible for your new company’s plans. Another option is signing up for COBRA insurance, which allows individuals to continue using their previous health insurance plan for a higher price.
When you do become eligible for your employer’s health plans, be sure to do your homework. Most employers offer a variety of plans that fit various lifestyles. Choosing a plan that is affordable for your budget while offering the best coverage for you and your family is the best option.
One of the first moves you should make when switching employers is to take a good look at your 401(k). Consider rolling your old 401(k) over into an IRA to simplify your retirement savings. While you wait to contribute to your 401(k) at your new job, you can still add to an IRA account on a monthly basis. When you do become eligible to contribute to your 401(k) at your new employer, be sure to sign up right away.
What to do next
Now that you’ve selected your health and retirement plans, it’s time to look to the future. What does a job change mean for your budget? And how do your new insurance benefits affect your paycheck? If you’ve taken a pay raise at your new company, it makes sense to rework your budget. Do you have more available funds to contribute to your retirement plan? Saving more money now, while you can, will make you more financially prepared when you cash in on your retirement.
Maybe your health plan is more expensive at your new job. Make up for this cost by spending less in your day-to-day life. Small things like eating out really do add up. Whether you’re taking a leap in your career, or are just starting out, the most important thing you can do is research your insurance plans. Make choices that fit your lifestyle and budget, and you’ll be happy when those choices pay off.