Eligibility isn't the only issue to consider when it comes to COBRA. Cost is another major factor.

If you have no pre-existing conditions and decide against COBRA, you can still consider buying individual insurance or even a short-term major medical policy to tide you over until you land a new job with health benefits.

The coverage you receive under COBRA must be identical to the coverage you had before. "An employer can't allow employees to choose a less expensive plan," says Paul Fronstin, a senior research associate with the Employee Benefits Research Institute, a Washington, D.C.-based nonprofit, nonpartisan organization that conducts research about employee benefits.

However, employers can - but are not required to - give you the option of dropping such "noncore" benefits as dental and vision care.

On the other hand, if you were covered by, say, three different health plans at the same time (one each for hospitalization, prescriptions, medical, etc.), you have the right to elect continuing coverage in any or all of them.