When you leave a job, you may be leaving behind a benefits package that includes health insurance. Private health insurance involves policies that are sold to private individuals and families. Many of the same providers of group health insurance have private plans available. Since private health insurance can be very expensive, take time to shop around for the best deal.
Step 1
Start looking for private health insurance plans at least two months before you need coverage. This gives you enough time to file the paperwork and go through the application process so that the policy is in effect when you need it. If you have been laid off, you can use your COBRA coverage until it runs out.
Step 2
Compare features and quotes from multiple private health insurance providers. You can use an online comparison site (see Resources) by putting in your location and some basic information about yourself.
Step 3
Provide your medical information. Unlike group health coverage, private health insurance plans often require that your medical history be taken into account before you receive a quote. Smoking, pre-existing medical conditions, age and weight can all affect your premium plan.
Step 4
Choose the most affordable plan with the best coverage. To keep your premiums manageable, you may decide on a policy with a higher deductible or that does not include dental coverage. Review the premium rates and payment schedule before you sign any contracts.
Step 5
Arrange for a broker to purchase the private health insurance plan on your behalf. They can lock in your rates and review the policy inclusions with you. You can find a broker through the National Association of Health Underwriters (see Resources).
Tips and Warnings
- In certain states, private health insurance providers are required to give coverage to all individuals, regardless of age and health. New York, New Jersey and Vermont are examples of state that regulate private health insurance.
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