Catastrophic Health Insurance for the Unemployed
Is catastrophic health insurance a temporary solution for stints of unemployment?
The ability to enjoy proper health care requires an adequate amount of health insurance, along with a steady income. For many individuals on unemployment, this is an obvious problem. Unless they are able to hold onto their previous employer’s insurance, they may not have the income to purchase full coverage health insurance. If this is the case, catastrophic health insurance may be the best choice available, for at least the short term.
If you are unemployed and wondering how you are going to keep yourself safe from a financial crisis if an emergency occurs, here is some information you may find helpful.
Is Catastrophic Health Insurance the Answer?
When it comes to health insurance, individuals who are unemployed have a couple of options.
- Previous insurance through an employer- Some insurance policies will extend your insurance for a short period of time after losing your job. Most of the time though, this is an expensive option and only available for those who quit or are laid off from work. In other words, if you are fired, you will not be eligible for this type of extended insurance.
- New full coverage insurance policy- If you choose to purchase a new insurance policy, you may be in for quite an expensive option. While a good insurance may provide you with all the health care coverage you need, the premiums will take a big chunk out of your pocketbook.
For those seeking a third and less expensive option, catastrophic health insurance may be the best choice.
What Does Catastrophic Health Insurance Offer the Unemployed?
For many unemployed individuals, a limited income is problematic when it comes to health care and insurance. This makes catastrophic health insurance and ideal choice. Individuals on unemployment can receive great insurance for emergency events in exchange for low monthly premiums. While the premiums may be low, the deductibles are high. Many of these types of insurance policies provide health savings accounts, or HSAs, though to help individuals save money in case an emergency medical situation occurs.
Unemployment often means a short period of time between careers. This makes catastrophic health insurance a great way to supplement insurance until you are able to find a new place of employment and start receiving employee health benefits once again. Also, if your new place of employment does not provide insurance, catastrophic health insurance will allow you to maintain emergency health coverage until you can afford full coverage insurance.
Catastrophic health insurance is also great for you if you are on unemployment because you have been let go from your employment for misconduct or other reasons which make you ineligible for continued employer-related insurance. This type of insurance will provide you with needed coverage while you search for a new job.
If you are looking for health insurance coverage to for the short term, catastrophic health insurance may be the choice for you. Catastrophic health insurance can provide you with temporary health care coverage and a low, affordable monthly premium.