New blow to the US Affordable Care Act (Obamacare).

[kandrathe]

Yes, they can go to exchanges. Although probably more expensive than the exchanges, there is also COBRA. Either way, there is also a special enrollment period to avoid rejection outside of the normal open enrollment period. If Kandrathe is saying that such insurance would have to be paid for by the individual, he could just as well replace the term insurance with groceries, rent, car payment, etc. All such things still need to be paid.

COBRA allows you to keep your employee supplied plan for a limited time (up to 36 months), but, and this is the big part that makes it pretty untenable, you need to pay for entire cost for those months. Typically, as a part of your benefits package through the employer, the employer would pay about 60 to 70% of the $1400/month insurance premium. So, not only do you not have a pay check, you are required to pay more than double what you are used to paying. The last time I was unemployed, I picked up a cheaper catastrophic plan in the open market for my wife and I. The kids qualified for some social program offered by my state. Due to the extensive amount of red tape, for both getting into private or public insurance plans, it was some months before we were transitioned. You can easily imagine how less administratively minded individuals can fall through the coverage gaps.