All jobs come with the perks of benefits. Whether it’s health and dental insurance, paid time off, retirement and pension plans or vision care, countless individuals rely on the benefits supplied by their employer to put away money for retirement or afford their healthcare expenses.
But if you know you’ll soon be leaving that job for any reason, you might be wondering what exactly that means for your job benefits. Whether you’ve landed a new position, are facing an anticipated layoff or are planning to go into retirement sometime soon, the answer to that question varies from company to company. That said, it’s certainly in your best interests to make sure you know what to expect so you can plan ahead for your security once you’re no longer working the same job.
If you’re facing a layoff like so many continue to experience in the wake of the COVID-19 pandemic, one of the first things you should look into is unemployment benefits. You’ll want to contact your local unemployment office to verify your eligibility and file for unemployment as soon as you can. This will enable you to supplement your income while you’re out of a job and on the hunt for new employment opportunities. Many people rely on the support of unemployment benefits when they are suddenly laid off, and it can make the job searching process far less stressful when you still have an income you can count on.
Another critical benefit to plan for is your health, vision and/or dental insurance. Your company may have provided some or all of these benefits to you. If you know you’ll no longer be holding the position that was supplying you with these types of benefits, you’ll want to find out exactly what you’re in for moving forward. Afterall, these benefits are critical in receiving your required care, whether it’s affording your prescriptions, having a yearly vision check up, or maintaining your routine teeth cleanings.
As far as health insurance goes, there is a program in place called COBRA that allows you to maintain your health insurance plan after you’re no longer at the company who was providing it to you. COBRA allows you to stay enrolled in your current health plan for anywhere between 18 and 36 months, and you’re eligible regardless of the reason for leaving your job—whether you quit, were fired or laid off. You are required to opt in to the COBRA program within 60 days of the date you left your job, and you’ll also have to pay an administrative fee of 2 percent along with whatever the premium cost of continued coverage is. It’s usually fairly affordable and can cost as little as $8 a month. Make sure you check with your human resources department to get more important information on the stipulations of your COBRA package.
If you were furloughed—a temporary unpaid leave usually caused by economic hardship within the company—your benefits will depend on your company. Some companies will suspend your paycheck entirely but continue to supply you with healthcare coverage, while others may stop paying for both your salary and any benefits they were providing. You should have a conversation with someone in your company’s human resources department in order to discuss what benefits are still available, if any.
These are just a few critical things you’ll want to understand about your job benefits if you know you won’t be holding your position much longer. To dive into everything you need to know if you expect to find yourself in this situation in the near future, this helpful job benefits guide designed by CreditRepair can help you navigate the process. It outlines everything to expect when it comes to your benefits after a job loss and how you can protect yourself and ensure financial security even after you’ve left your position.
This situation may feel overwhelming for many if you’re left wondering how you’ll continue to stay covered with important benefits. But all it takes is some research and preparation to make the best decisions possible going forward.