Never scrimp on health insurance just to save a little money. There are plenty of affordable options, and the financial consequences of going without insurance can be catastrophic. If your child can get health insurance through an employer, great. If not, here are some other options.

• Short-term health plans. These major medical policies usually don’t require an extensive medical history check and can be obtained within 24 hours. Monthly premiums are based on the coverage needed, but they usually don’t exceed $100. Keep in mind that short-term plans generally don’t cover pre-existing conditions or preventive care, and are designed for recent college graduates, employees waiting for group coverage to begin or anyone between jobs. Policies can be extended up to 18 months and are often non-renewable.
• High-deductible individual health insurance. This type of “catastrophic” insurance offers low premiums but high deductibles toward coverage for major injuries or illnesses.
• Group discounts with professional or affinity groups. Bar associations, automobile associations, medical associations and other professional organizations may provide a lower-cost group insurance alternative.
• Continued dependent status. Some plans allow young adults to retain their dependent status up to age 23, even if they’re not full-time students, as long as a parent is their primary means of support.
• Continued coverage on a parent’s group plan through COBRA (Consolidated Omnibus Budget Reconciliation Act). COBRA allows employees with children who are students losing their dependent status to extend their child’s coverage for up to 36 months. Plan rules generally apply to employers with more than 20 employees. Keep in mind that this is a much more costly alternative—premiums include the full cost of care without any subsidy from the company for the dependent child.
• New individual policy. These plans typically cost more than short-term or high-deductible coverage, but they can provide more comprehensive benefits, including wellness care.

 

The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The type of savings and investment strategies mentioned may not be suitable for everyone. Each investor needs to review a security transaction or strategy for his or her own particular situation. The examples mentioned are for informational purposes only and are not intended to represent results you should expect in the future. Data contained here is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.