Why is COBRA considered better than individual health insurance plans? When I did some research,for almost the same kind of coverage but cheaper premiums, I could find individual health insurance plans.But I keep hearing that given an option, going for COBRA is the wiser decision. I don't understand what the catch could be in these individual plans. Any insight?

The short answer to your question is that with larger groups, such as with over 50 employees, consumers have more bargaining leverage in negotiating more favorable pricing for their medical insurance. People that own businesses of this size can qualify for a lower rate on a given plan of benefits than can an individual consumer representing just himself or his family.

Since COBRA is a benefit for groups of 20 or more, its participants receive a large-group pricing. That is why, on an apples-for-apples comparison, a plan purchased through COBRA would almost always be less expensive than a plan purchased as an individual.

__________________
As an independent life insurance broker, I will gladly answer your consumer questions about life insurance. Please contact me by email (skobrin@stevenkobrin.com) or by toll-free telephone (1-866-633-1818). Thank you.