Health Insurance for College Grads
July 24, 2009A likely predicament many college graduates find themselves in when graduating is being uninsured. You are too old to be considered eligible for your parents insurance, and if you haven’t landed a job which offers health benefits you are walking around with an extraordinary amount of risk. So what can recent college graduates do to protect both their health and their financial future? My recommendation is to research and apply for individual health insurance.
The nice thing about individual health insurance is the fact that you can own it for life, but you can also drop it at anytime without any fees or penalties. It truly serves as a great way to cover yourself during the period between graduating and finding a job. In fact, a lot of time it is worthwhile to keep you individual health insurance policy even if there are benefits available through your employment, because it likely costs less than what your employer would expect to you contribute.
Now obviously when you graduate you are probably trying to do everything to save money. One way to keep your health insurance premium lower on a monthly basis is to apply for slightly higher deductible plan. Although in the past higher deductible plans have been frowned upon, you must remember that the deductible only comes into play for major surgeries or if you’re confined to the hospital. More often than not, most college graduates don’t even remember the last time they had to go to the doctor; and if they did go, it was for some sort of accident.
A great way to protect yourself from the unforeseen accidents and keep your premium low is to add an accident benefit rider. This will give you first dollar coverage for any associated medical bills before having to meet your deductible.
To find a plan that best fits your personal needs once you graduate college, speak with an Advisor here at MyInsuranceExpert.com. If you looking for more information on this topic check out MyInsuranceExpert.com for everything you need to know about health insurance for college students.
Posted in :health insurance | 4 Comments. »
Great advice. College graduation is a huge milestone, however it comes with a lot of expenses. Health insurance is definitely a necessity. For recent college graduates, short term health insurance is probably the best option until they are able to get benefits. I found a company that is specifically designed for recent college graduates and students who need health insurance: Grad Guard
Graduates are at a high risk without health insurance. With medical costs being the leading cause for bankruptcy, anyone without health insurance is at risk. There are a few different approaches for grads. If a graduate is likely to get a job with benefits for within 12 months, they may want to consider a short-term plan. Short term plans cover you in the event of an emergency situation. Premiums are generally lower on short term plans and there are multiple deductible options. Long term coverage is also a valuable option for new grads but the most important piece of advice is to do your homework! Whether you have coverage or you’re looking for coverage, you need to know your plan inside and out so you know exactly what it is you are covered for.
The comments above are great, and really reinforce the necessity for people of all ages to get covered. And sometimes short-term health coverage is an option that is most realistic for your situation. However, short-term policies can be very dangerous. For example, if you acquire a pre-existing condition while on a short-term plan, once it is exhausted you may be a decline with other carriers. Also, almost 99% of the time pre-existing conditions are excluded from coverage with a short term plan. As Ryan said, it is important to do your homework when looking for a plan. Grad Guard does offer good insurance, but has limited benefits for specific surgeries; for example, only $2,500 towards gallbladder surgery (this can cost up to $15,000). But again, the bottom line is to reduce your risk, and having any form of real insurance is a great way to do this.
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