Employment Change in Texas
Many people acquire certain kinds of insurance through their employment, particularly health and disability coverage. Bigger businesses may also offer retirement benefits, such as a 401(k) account. When changing jobs, rearranging insurance coverage and discovering which accounts are portable becomes very important. A new job or career can also mean a change in your way of life, which can additionally have an effect on insurance.
Texas Auto Insurance
If changing jobs generates a change in the number of miles and where you drive let the insurance company know. For example, if the old job involved driving a long distance to work and the new job is closer to home and family, you may possibly be able to save money on your auto insurance policy. If you take public transportation and only drive your car for pleasure trips on weekends, that can be a factor as well in lowering your insurance. Alternatively, if you use your private vehicle for business purposes, ask your employer about liability coverage. If you are in an accident, you should understand whether liability coverage applies to your personal insurance or your employer's commercial coverage. Many of us try to amplify our productivity by making business calls while driving. It's important to know if your employer has a policy involving cell phone use in your private car, and whether they deem that business-related or personal time. Texas is increasingly encouraging the use of hands-free technology while driving. And, of course, keep account of your usage and expenses for tax purposes. Your automobile coverage also comes into play when renting a vehicle. If renting for business purposes, your employer should already have a policy in place. If you reject coverage offered at the rental car counter, your personal auto policy may pay for any damage to the rental car. Check with your insurance company or agent. Your credit cards may also provide basic rental car protection.
Texas Home Insurance
A new job might mean you can work from home. Some companies now allow flexible working schedules. Your employer may also provide some office equipment such as a laptop or fax machine. Your employer's insurance should cover these items. Your personal homeowner's insurance policy does not cover commercial business activity. If you are self-employed or do consulting or out-sourced work for a company, you may need to purchase professional liability coverage. If clients and vendors come to your home, you may need to purchase a home business or small business owner’s policy.
Texas Life Insurance
A new job may mean a salary boost. The more you make, the more your family depends on that level of income, and the more significant it becomes to protect it. Remember, the primary purpose for life insurance is to supply lost income if a wage earner dies. You should also be knowledgeable of the type of policy you have. If you were involved in a group life insurance program with your former employer, that life insurance coverage will likely end when you leave the job, particularly if your employer paid for it. In some cases, you may be able transfer this to an individual policy, for example, when retiring. However, if you purchased insurance through a group insurance program and you paid for it through payroll deduction, for example, those policies are generally portable and can be taken with you. You would continue to pay the premium on your own.
Texas Health Insurance
If you're switching jobs, one of your first concerns may be continuing your health care coverage. Under the Consolidated Omnibus Budget Reconciliation or COBRA Act, the government requires employers with 20 or more employees to supply healthcare coverage for up to 18 months after a person leaves the job. Dependents are additionally included in the coverage. To continue receiving this group health insurance, you must notify your employer within 60 days. You continue to pay the full premium and administrative fees. If you do not qualify for COBRA, you may be able to change your group policy to an individual policy. There are additionally interim or short-term options that provide medical insurance on a short-term basis, usually a few months. You can only renew this coverage once. The short term policy provides coverage for hospitalization, services such as X-rays and laboratory test, intensive care and surgical needs.
Texas Long-Term Care Insurance
Long term care insurance provides coverage for nursing home care. Some policies cover in home care, but not all of them. In order to meet the criteria for long-term care, you must lose at least two of the functions of daily activity, such as the capability to dress yourself, or cognitive ability in order to trigger the coverage. You should be able to take your policy with you by transferring it into an individual policy. A premium increase is likely to go together with a conversion.
Texas Financial Planning
When switching jobs, generally, the major question is what to do with your 401(k) account. There are three basic options :
- Leave it alone where it is
- Roll it over into your new employer's plan
- Convert your 401(K) into an Individual Retirement Account (IRA).
There is nothing wrong with leaving your 401(k) where it is. If you have over $5,000, you can keep the money in the previous plan until you retire. Think about how your existing plan fit with your changing employment and economic needs. Another thing to consider is the relative financial health of your former employer. If you are changing jobs because you think your current employer is financially unsteady, take your 401(k) with you, especially if much of the plan is invested in company stock. Many individuals have lost their retirement savings when firms filed for bankruptcy. Rolling your current 401(k) into your new employer's plan makes sense, particularly if it offers more options. The process is easy, but make sure it's done right so that excess charges are avoided. Finally, consider rolling your 401(k) into an IRA. This is the most flexible option because you get to decide how you want to invest the money. In the typical 401(k), you choose among a specific number of investment options. An IRA becomes a good choice if your new company doesn't have a retirement plan, or if they don't accept rollovers. This plan also gives you more control over your retirement plan.
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