Switching Jobs? Make Sure to Ask This One Question

It's an important one you don't want to forget.

One of the upsides of working for an employer, as opposed to being self-employed, is getting to take advantage of different workplace benefits. These might include paid time off, access to a 401(k) plan for retirement savings, and subsidized or even free insurance.

And by "insurance," we're not just talking about health insurance. Many companies offer employees the option to purchase life insurance. And the upside of going through your employer could be snagging a competitive rate on your coverage and not having to go through underwriting (the process by which an insurance company assesses you as an applicant and determines how risky you are).

You might also have access to pet insurance through your company. If so, you may be paying a reduced rate for your coverage.

But there may come a point when you decide it's time to leave your job. And when you leave do, you might also lose out on the benefits you once enjoyed. It's essential that you know whether the insurance policies you have through your employer are yours to keep or not, so ask this one question before you say goodbye to your former company for good.

Is my coverage portable?

If your insurance coverage is portable, it means you can take it with you, even if you leave your job. It's important to ask that question before completing a job switch so you know what to expect and to ensure that you put the right coverage in place.

Let's say you have life insurance through your employer that isn't portable. If that's your only policy and you leave your job, you'll leave yourself without life insurance. That could be a dangerous thing, and in that case, you'll probably want to put a new policy in place right away.

You may be able to get a new life insurance policy through your next employer, but that assumes you have a job lined up and that this benefit is available there. You may not know the latter until you've officially joined your new company and you're presented with its benefits package.

Similarly, pet insurance can be a risky thing to have lapse. You never know when your pet might get injured or hurt, so going even a month or two without a policy could mean getting stuck with astronomically high veterinary care bills. And so you'll want to know what options you have with regard to keeping your pet insurance coverage.

Ask the right questions

The decision to leave a job won't just impact your career -- it could also impact the insurance coverage you have. Make sure to find out what the impact will be if you're set on starting fresh at a new company.

Keep in mind, though, that it's not just your insurance you'll want to ask about. If you have savings in your company's 401(k) plan, you'll want to find out if you can keep your money where it is or if you have to move it. If your new employer offers its own 401(k), you may be able to roll your retirement savings into that new plan. If not, you can roll it into an IRA you open yourself.

Either way, ask those questions. That way, you won't be thrown off by any surprises.