In today’s world, it is common to change jobs for career growth and increased salary. Now that the economy has recovered from the downfall, more individuals are finding new positions that better suit their goals.
As job transitions happen, it is important to keep in mind how employment changes can affect your insurance coverage. Did you realize you could save on car insurance if you are driving a shorter distance to work? Do you know if your life insurance policy will remain active once you leave your current employer?
Tips for Understanding Your New Insurance Situation
There are a myriad of situational changes that can affect your insurance coverage, and it is important to understand whether any of them are relevant to you and your family. Here are some tips for understanding how your job change can affect your insurance.
Will you be driving less (or more) for your new position? Perhaps you will be using public transportation for your commute and only using your auto for personal driving. These changes can impact the premium you pay for your auto insurance. Additionally, if you will be doing any driving for your new job other than your daily commute, it is important to ask whether the company provides additional liability insurance, as your auto policy may not cover you while you are driving for business.
Did your current employer provide life insurance as a part of your benefits package? Depending on the details and the policy, this insurance plan may not be eligible to travel with you to your new job. If it is eligible to travel as an individual plan, be sure to ask about any increase in premiums or changes in coverage. If your new position includes an increase in salary, it is also important to evaluate your life insurance coverage to be sure it adequately covers your family if your income was no longer available to them.
Similar to life insurance, your disability insurance may or may not be available after you leave your current employer. Disability insurance generally covers up to 70% of your income if you are temporarily or permanently unable to work due to illness or injury. While it is an incredibly valuable form of coverage, many employers do not offer it as a part of the benefits package. Be sure to ask your new employer whether they offer it.
After salary, inquiries about health insurance coverage are some of the most common questions when starting with a new company. Not all health insurance policies are created equal, and it is important to understand the difference in coverage and out-of-pocket costs. While it may appear that you pay less because your premiums are lower, you should find out how much it will cost if you or your dependents fall ill and require medical attention.
Long-Term Care Insurance
Long-term care insurance is designed for individuals who lose their cognitive ability or the ability to perform at least two essential daily functions, such as the ability to dress or use the restroom. Most long-term care policies can be converted to an individual plan, but you should expect an increase in premiums. Inquire as to whether your new employer provides this type of coverage in their benefits package, as it may save you money.
Will you be working from home with your new position? Business activities from the home are often not covered by a traditional home insurance policy. Your new employer’s insurance will likely cover your company’s office equipment, such as a laptop, but their liability insurance will likely not cover you if colleagues or clients come to your home office. Talk with your new employer about what their insurance covers, and be prepared to protect yourself with home business or a small business owner policy.
Talk With An Expert Today
When transitioning to a new job, your circumstances may change, affecting your insurance coverage. The right insurance coverage varies for each family and each individual. Let us help guide you in making the right insurance decisions to ensure your family’s financial security. Call your BenefitSource insurance professional directly at (877) 215-5431 or email us to set up an appointment to discuss all of your insurance policies today!
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