Insurance Choices

By Victor Chou (past articles)

10/01/2008

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So if you’ve made it to this article, it probably means that being a dependent on a parental plan doesn’t work for you and your school sponsored plan doesn’t make the grade. So what other options do you have? In this article, we’ll discuss this common dilemma and some additional options that might be available to you.

• Employer sponsored. If you have access to an employer sponsored plan, this is usually a reasonable option with a variety of good features. You may not have to satisfy a waiting period if you have a pre-existing condition and there are usually ways to continue your insurance even if you stop working for the company. At most companies, the premium is very reasonable through a combination of employer negotiating power and employer contributions. Sometimes, though, for young adults, these plans may actually be more expensive that what you can get individually, so still shop around.

• Association sponsored. If you maintain an affiliation with a professional group (there are literally thousands of groups representing all sorts of professions, from librarians to nurses, commercial fishermen to free-lance writers) or even with your college’s alumni association, you can often purchase individual health insurance coverage through the group’s preferred insurance company. The insurance plans offered are purchased individually, making them similar to the individual policies that we’ll discuss below. An additional benefit of going through an association is that the insurance company may discount the premiums across the board for certain organizations and you’ll also help out your school or group at the same time.