An unhealthy circumstance: keeping health coverage between jobs.

• Author: Sutherland, Spencer
• Position: Executive Health

There are few things more difficult than losing your job. Along with unemployment comes a seemingly infinite number of worries, especially how you will afford health insurance. Though securing and financing coverage is much more challenging without the benefits of a group plan or employer contributions, there are options available to get you through the tough times.

"The first thing to remember about choosing a new health plan is that there is a definite limit on how much time you have to make your decision," says Jesse Liddell, Government Programs coordinator for HIPUtah, Utah's comprehensive health insurance pool. "Even in times of financial difficulty, it's not a good idea to go any amount of time without insurance," Liddell says.

Without insurance, you put yourself at risk for unexpected medical expense, but more importantly, you could lose portability of your prior insurance; if you incur more than a 63-day break in coverage, your pre-existing medical conditions may not be covered by your new carrier.

Given the ticking clock, where do you begin your insurance search?

Commercial Health Plans

If you and your family are healthy, coverage through a commercial health plan is the most affordable and versatile option. But before you pick a plan, it's a good idea to evaluate how long you anticipate being out of work.

"Most insurance carriers offer a short-term plan for people who are in between jobs," says Tim Gill, senior marketing analyst at SelectHealth. "These plans generally only allow coverage for six months and do not require medical underwriting. That means you could be covered as soon as a day after applying."

If you know how long you'll need coverage, you can pay for the exact number of days upfront. Rates and coverage are comparable to more traditional plans; the only drawback is that preexisting conditions are not covered.

If you'll need coverage for more than six months, a traditional individual/family plan is the best option. Any independent insurance agent can help you shop for rates and plan designs.

COBRA Coverage

If you or a dependent family member has a serious health condition, and you fear that you may not qualify for a commercial policy, there are other options.

By federal law, large companies are required to offer terminated employees continued (COBRA) coverage for up to 18 months. (COBRA and mini-COBRA may also be available to small business employees).

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The benefit of COBRA is that you keep the...