Layoff Resources: Managing A Job Layoff

4 Pillars: Health, Wealth, Employment and Well-Being

Facing a layoff can be a nerve-wracking event that leaves many reeling. However, it doesn't have to be that way for you. We have outlined 4 crucial areas to consider during these trying times. By acting proactively, you can take stock of your situation, methodically address your priorities and weather the temporary setback. 

1. Health: Insurance Options

What options are available to maintaining your health insurance coverage? Maybe more than you think. When you lose your health coverage due to a layoff, that is considered a qualifying life event that allows you to enroll in coverage elsewhere. You may have one of the following options:

1. COBRA – if your employer is over 20 employees’ chances are, they offer COBRA services.  You should start here.  Find out what your cost will be to cover yourself on the current health plan you are carrying with your employer. 
2. Spousal Coverage – If your spouse’s employer offers health coverage to their employees you can request a special enrollment due to loss of coverage.
3. Parental Coverage – if you are under 26 years of age and your Mom or Dad is still covered under an employer plan that allows family members, you can also qualify to be added here due to loss of coverage.
4. Individual Policy – If the above options are not right for you, we can help you to get quotes from different carriers looking at several options to fit your budget.  We can also look at your income level and determine if you might qualify for a subsidy toward your premium.
5. If you are over age 65, you are eligible to enroll in Medicare. 

It is important to consider all factors in this equation. Other considerations could be: what doctors you need to see, the length of time you will need coverage and what your income will be going forward. It can be a complicated decision and we are here to help you walk through it.  

2. Wealth: Evaluating Your Finances

Your investment assets can play a critical role during this time. If you have money in an employer's retirement plan (ex. 401k), typically you have four options and may engage in a combination of them:

• • Leave the money in the employer's plan
  • Roll over the assets to your new employer's plan; if one is available and rollovers are permitted
  • Roll over to an IRA 
  • Cash out the account value

If you decide to cash out, you may incur taxes and penalties on withdrawals. It's wise to avoid them if possible. Alternatively, you can keep the money invested, and tax-advantaged by utilizing the other options. It important to understand what opportunities and pitfalls to look out for. we can help you determine which options are available and most suitable for you. 

Create A Budget: Manage Your Cash Flows

Identifying your essential, fixed expenses and cutting back on discretionary spending will help best utilize cash flows and liquid assets. Hopefully, you have some sort of emergency fund saved that you will be able to tap into. Either way, its important to manage the impact of lost income  against your savings and investments. We have a template you can download here: Monthly Budget Tool.

3. Employment: Planning Your Future

This is a time-sensitive matter and should be completed promptly. Filing in Michigan can now can be done by phone or online. You can begin the process here: Michigan Unemployment Claims. Standard unemployment benefits last 20 weeks and are based on previous income. (CARES Act has temporarily modified limits) You can learn more specifics at Michigan.gov or with your local state government. 

Job Hunting

It's time to update your resume and brush up on your interviewing skills. There are many free and helpful resources online that can help accelerate the hiring process. Remember to use your network and build new connections during this time. There are many websites that make searching and applying to jobs easier than ever. Don't forget to clean up your online profiles and create a LinkedIn account if you don't have one already. 

4. Well-Being: Stay Level and Focused

Remember, when one door closes, another door opens. Take a step back and focus pn the personal aspects of your life: family, friends, and personal goals.

It's best to not cause yourself unnecessary stress or anxiety in this time, so keep this in mind: Stay on course and you will rebound. Do not let this derail your long-term career goals. Use this as an opportunity to reset or pivot, and try not to dwell on it.