Comments on: The Unemployment Plan

By: Thad P

Thad P — Wed, 30 Nov 2011 16:40:59 +0000

A few years ago I was in between employers and went the temporary insurance route. It was more affordable than COBRA, but it is of limited duration. My wife was diagnosed with hypertension during our first temporary insurance period, and was dropped in the second period.

Another important thing to do is to get letters of creditable insurance from your insurance company before you go off of your company plan. That will make it easier to get into individual plans later on.

If you happen to have a health need during the time you are off of insurance, be sure to ask for any self-pay discounts from providers.

Best of luck to you.

By: Zian

Zian — Sat, 26 Nov 2011 06:06:34 +0000

As far as #1 goes, I’d suggest cutting as drastically as possible right now and then adding things back when it turns out you can because studeis described in The Upside of Irrationality demonstrate that people get used to living cheaper much quicker than they expect to. In addition, if you slowly downsize, then you’ll have to do go throug the adjusting process multiple times, which multiplies the pain.

By: Rebecca

Rebecca — Thu, 24 Nov 2011 15:16:36 +0000

About COBRA – earlier this year, the company I work for was purchased by another company. They severed 90% of the existing employees (I was spared). At the time, I got a good look at what COBRA actually costs, and what unemployment benefits would be available to us. It turned out that COBRA costs to cover me and my husband would have exceeded my total unemployment benefits for the month. In other words, while it was legally offered and available to the severed workers, it wasn’t practical. Health insurance tied to employment – I sure hope this changes in the future.

By: Maggie

Maggie — Wed, 23 Nov 2011 22:20:24 +0000

I thought of something else. My company sent me to Drake, Beam & Morin for job search assistance. At our company, when you move from job to job, there is only an internal form to fill out, no resume. If you don’t have a good one, do that the very first thing. Also, I agree with #13. Finding a new job is your new job. I spent every day at the DBM office from 9 – 4 pm. I submitted resumes, attended training sessions and learned how to interview. Worth every penny and gave me a feeling of accomplishment when you don’t have that after being “let go.” I also was able to get unemployment insurance because I was let go on an IRIF (involuntary vs voluntary)and used that to pay off small bills so my severance could be used for daily living. Again, my best wishes for your success in getting another job. Don’t be afraid to look outside your current field. You might find something totally wonderful.

By: HW

HW — Wed, 23 Nov 2011 22:05:33 +0000

COBRA can be VERY expensive, depending on how good your insurance is and what your company is paying for it. Short-term insurance is cheap and covers you in case of an emergency, but with no well care. It’s what we’ve used before. Or, look into getting your own insurance plan.

By: Jackowick

Jackowick — Wed, 23 Nov 2011 19:31:59 +0000

And don’t be afraid to reshop your insurances for home/auto now. I recently reevaluated mine and found that if I packaged both with Triple-A, in my area, I was able to net savings of a few hundred dollars. It never hurts to shop when it comes to insurance, and doing it while still pulling a paycheck is a good idea.

By: Jackowick

Jackowick — Wed, 23 Nov 2011 19:27:21 +0000

Remember that finding a new job will “be” your new job for a while. Set the alarm, shower, and get dressed. This maintains momemtum, self esteem, and you’d be amazed what kind of calming affect this can have on kids, as well as relieve potential spousal tension.

Get into a routine of places you visit, both real world and online for leads. Everytime you leave the house, have a business card or resume and remember to make a good presentation. You never known when a network opportunity comes up, and you have to be prepapred. Better to be in a polo shirt and nice jeans or khakis at Home Depot than a basketball jersey and track pants if you run into an old friend who works in hiring.

Make a twitter for job searching. Update it daily with how many resumes/interviews/leads you worked on. Do not lose momentum.

Crash college job fairs too ;)

By: valleycat1

valleycat1 — Wed, 23 Nov 2011 18:27:38 +0000

One more thing – as soon as you know exactly how much you will net from the severance package, sit down with your wife to plan a realistic budget based on worst-case how long you think it will take you to get into another job, figure out where you need to cut expenses, and discuss your other options for bringing in more money in the meantime.

By: Maggie

Maggie — Wed, 23 Nov 2011 17:50:37 +0000

I lost my job (downsized) about 7 years ago but was rehired by my same company later. The most important thing I can tell you is take advantage of every opportunity your company gives you for preparing a resume and learning how to search for another job. Also, do not be ashamed to tell EVERYONE you are looking for a job. You never know who will hear/overhear and offer you an interview. You need to realize that this was a company business decision not a performance issue and that is not your fault. So, talk this up. And continue to look for jobs within your company while you still have employment. There may be something there.
I hate it that companies always have these IRIF’s/VRIF’s this time of the year. My company is having one this year, too.
Good luck to you and your family.

By: littlepitcher

littlepitcher — Wed, 23 Nov 2011 14:16:03 +0000

Weatherize your dwelling now. You will be spending more time at home, so you want to cut your energy bills, not increase them. Familiarize yourself with mass transit maps and routes, so you can utilize it for as much of your job search as possible. Make sure you are fit, and get good shoes which don’t create blisters. If you have back pain, begin exercises to relieve it.
Prune your possessions and sell the surplus.

By: Sara

Sara — Wed, 23 Nov 2011 13:51:24 +0000

If there are things that you recently purchased that can be returned, do that! Even small purchases that are not absolutely needed can add up. And tell your kids exactly what is going on. Kids are really very reasonable about things like missing a few months of some activity while you find a job. Or having a laid back, homemade holiday. But it seems as if many parents are just never really honest with them about where things fit in the budget. It is a huge gift to kids to learn how to happily survive difficult times.

By: getagrip

getagrip — Wed, 23 Nov 2011 12:50:20 +0000

You might also want to take a little time and see what unemployment benefits you may be eligable for in your state and what the requirements are if you don’t know (e.g. any waiting period, etc.). Some folks who have never asked or needed such support for themselves before forgo them until they are desperate, but they are supposed to be there for just such situations to help you until you get employment. Even if its not much compared to your current income/salary, it can help buy you a few months with what you may already have saved and the severance. Your taxes helped to pay for it, may as well use it when you actually need it.

By: Teri Pittman

Teri Pittman — Wed, 23 Nov 2011 02:56:02 +0000

I agree with number 1 and feel it’s more important than anything else. Figure that you might be out of work a lot longer than you’d expect. If you’re wrong, it’s no big deal. I was out of work for 13 months when I was laid off last. I waited longer than I should have to cut back. I’d also recommend stocking up on food items. If you have a good food storage in place, it frees up your money for other things.

By: kc

kc — Tue, 22 Nov 2011 23:18:47 +0000

As an alternative to Cobra, check out temporary insurance.

By: Steven

Steven — Tue, 22 Nov 2011 21:44:44 +0000

Pare back on the premium movie channels? How about cutting cable altogether? I’m not sure why people pay for cable in the first place.

By: Telephus44

Telephus44 — Tue, 22 Nov 2011 20:56:36 +0000

Another option is to make sure that you take advantage of any benfits your workplace offers before you get laid off. Get that annual physical while you have health insurance. Get that cavity filled while you have dental insurance. Spend that FSA money. Etc.

By: valleycat1

valleycat1 — Tue, 22 Nov 2011 20:56:24 +0000

Investigate COBRA but also start compare the cost with private health insurance as COBRA continuation is very expensive (though it could be worth it if someone in the family has a pre-existing condition).

If your company offers resources or other assistance that might help you find another job, take advantage of it.

By: Tracy

Tracy — Tue, 22 Nov 2011 20:34:25 +0000

Also, explore the options around your wife picking up more hours (particularly if the reason she’s working part time is because of the 3 children at home)

By: krantcents

krantcents — Tue, 22 Nov 2011 20:08:58 +0000

Great advice, I would start networking immediately since that takes time to get rolling. Definitely sut back all your expenses immediately.