I intend to run my side business full time soon and was wondering whether it would be prudent to continue to be a contractor for my current employer rather than become a full time employee after my graduation?
The main focus of this question is on health insurance were I am afraid of paying thousands to continue under my employers plan (cobra) if I was to become a full time employee and then quit to chase my own dreams.
On the other hand, if I were to stay as a contractor and get my own insurance, as I do now, I would continue to pay the very same premium for me and my wife that I currently do, out of my pocket, and not suffer "change in policy".
My main confusion is over something I term "change in policy" where:
- my company would have subscribed me for Insurer A, Plan B
- and when I quit the company, I could choose to continue paying the full premium for that policy for upto 6 months (cobra)
- or get my own policy which would surely be a different policy even if I went with "Insurer A, Plan B" (since my company plan is a group plan and mine would be a family plan)
By changing policies so, I am afraid that the health insurance company could deny a lot of my claims citing that I have to be on the same policy for X years before they pay for those situations, or cite a "break in coverage" clause and turn down an expensive claim.
I have also heard that new health insurance plans tend to be more expensive than if you already were with the insurance company for a while?