When COBRA makes sense

There are times when relying on COBRA for your health insurance needs is the best possible idea. This has saved millions of people over the years, and you may be next; you just don't know it yet. The nice thing about COBRA is that you can continue with an employer sponsored health plan even after you are no longer employed. This sounds too good to be true, but it is fact. Of course, you are going to need to be aware of the ins and outs of COBRA before you decide that it is best for you.

First things first, COBRA is not free. You are going to have to pay the entire premium which for many people is a lot of money. But that being said, paying for coverage through COBRA is better than having nothing at all. Even if you are asked to pay several hundred dollars per month, or more, you should consider doing so unless you have another option that is more affordable.

COBRA does not make sense if you can join a spouse's health insurance plan at a lower cost. In this case, you will want to turn down COBRA coverage, make the switch to the other plan, and save yourself the money.

At the very least, if you lose your job you should consider what COBRA has to offer. This will allow you to keep the same coverage that you are used to by paying the premium in its entirely each month.

The bottom line is simple: paying for COBRA is better than not having health insurance. You can keep COBRA until you get back on your feet (up to 18 months), and land better coverage.