• Life insurance and job loss

    Asked by rustysflygirl on Wednesday, March 7, 2012

    Life insurance and job loss

    I know this may sound morbid but it is a real concern for me. my husband was diagnosed with stage 4 colon cancer 2 weeks ago, he had surgery last week and starts chemo next week. It appears he may lose his job soon due to loss of a company contract. If so, we will lose all benefits. Now that he has been diagnosed with cancer and the prognosis is not good he will be unable to get life insurance anywhere. Does cobra cover life insurance? Are there any other options out there?

    6 Answers from the Community

    6 answers
    • ttisme's Avatar

      cobra only allows you to pay out of pocket up to 102% above what your medical benefits are. In other words paying full price instead of a precetage of your medical benefits. for only a period of 18months.

      Life insurance is an after tax benefit, and not covered. The company that handles your "third party benefits" will contact you with in 90 days of your spouse job loss, to offer you methods of payments to maintain your life insurance coverage.

      I am only knowledgable on this becuz i have had to both pay out of pocket fully for my medical coverage to continue and knew that if I let my life insurance lapse, I'd never get another policy!

      Again, you really need to talk to your husband's HR people. Be proactive, they normally don't offer information unless you ask.

      over 8 years ago
    • GregP_WN's Avatar

      Good Info... + 1 on the ask for what they got for ya. There may be something there, and as was said, they sometimes arent just over-willing to give up the info.

      over 8 years ago
    • PhillieG's Avatar

      COBRA length does vary depending on your employer. I have 29 months of coverage that started after my long-term disability stopped. So basically I stayed with benefits for close to two years, then COBRA kicked in. Also, my company continues to pay the lions share of the $1500 COBRA while I pay $350 for family coverage.

      I hope I don't sound like I'm rubbing anything in anyone's face. It just seems that COBRA is not written in stone.

      over 8 years ago
    • fulto11's Avatar

      Just throwing my personal knowledge. What works for one...might not work for another. Had a friend with breast cancer. Went under Cobra after losing job. MD Anderson in Houston, Tx. paid her Cobra premiums and covered all co-pays. They said it was cheaper for them to pay the premiums (instead of absorbing all cost). Check with your medical center.

      Second: I just went thru dilemna of life insurance. I had laid down all applications that came through the mail. I did an application on the internet and got bombarded with life insurance. There is a term life that you qualify for under any condition. The most I looked for was rate increases. I had an insurance broker (friend) look this one over and he said it was very good. ONLY ONE that did not have rate increase, gave highest return and less monthly cost. It was United of Omaha Life Insurance. Have to stay alive for two years but if there is death...you get your premium back plus 10%. There is no rate increase. It is a gamble but have to start somewhere. If you get your money back...you can not lose. We have ten thousand dollar coverage for $66.00 mo. (age 67)
      Then sign up for a pre-pay. There is an older funeral home in our town that give good rates. One wanted minimium of $10,000 and the one we went with was $6,000. (knock off the flowers, books, limos, etc.) If he passes in first year at least I get thirty percent of the six thousand. Between year 2 and 3 I get seventy percent of the six thousand. After 3rd. year 100%. It is a 10 year note at $109.00 per month; but note stops after used.
      I know this is morbid but we have to be realist. I pray I have the old bird for many years to come...but we knew this had to be dealt with.
      Hope this helps. I am mad that I let 6 months lapse before getting this done. I did not know we could TRY for life insurance.

      over 8 years ago
    • rustysflygirl's Avatar

      Thank you so much, this helps.

      over 8 years ago
    • tspoon's Avatar

      Something else to think of. We bought the same life ins, but he wants cremation. For 990.00 prepaid, they will pick him up anywhere in the state. Can vouch for reliability since my uncle passed last May. We prepaid my husbands in Oct. Once you take care of these things you never have to discuss it again.

      over 8 years ago

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