What is COBRA?
The Bankrate.com financial term of the day is: "COBRA."
This COBRA isn't a snake, but it can still have fangs. COBRA is a type of health insurance. It's an acronym for "Consolidated Omnibus Budget Reconciliation Act," a federal law that allows you to stay insured when you lose employee health benefits because of a layoff or some other reason. You have the right to keep the same coverage for at least a year and a half -- as long as you pay the full premiums. That's where COBRA's bite comes in. It can be expensive, typically costing several thousands of dollars per year.
If you lose your job, COBRA health insurance will keep you covered for a while -- if you can afford it.
To find out more about health insurance, visit the insurance section at Bankrate.com.