Laid off? Your work's just starting

You also can shop for health insurance online. If you're in tiptop shape, you can beat COBRA rates by a mile. Unfortunately, George isn't.

He has diabetes. This pre-existing condition would not be covered under most policies, and because diabetes can trigger other ailments, the premiums were unaffordable even with a plethora of policy limitations. Shopping around confirmed that his wife's policy was vastly cheaper than any other option.

Now, consider the long term

In the month since he's been out of work, George has been approached by two investment brokers who said they wanted to help him roll over his retirement money. After shopping for health insurance, he's gotten dozens of calls and e-mails from insurance agents, too.

If you get taken in a job scam, you'll usually lose only the upfront fee the huckster charges (unless you're dumb enough to provide access to your bank account). But if you get caught in a health insurance scam, you could find yourself facing hundreds of thousands of dollars in uninsured costs in a medical emergency. The repercussions of making bad retirement investment choices can be equally severe.

Some of the advisers appear legitimate, others not. What are the tipoffs of trouble?

• A false sense of urgency. Don't trust anyone with your money if they're not willing to give you plenty of time to investigate the investment and them.

• Too-good-to-be-true offers. George's Web research convinced him that $800 a month was as cheap as he could get for individual health coverage. And most brokers told him they couldn't help at all once he explained his medical history. But one caller promised a $139 rate for "comprehensive coverage." The explanation: "We're a nonprofit."

• Reluctance to put it in writing. When George asked for policy details in writing, the telemarketer refused, saying the company kept costs low by forgoing marketing materials. But not providing a copy of the policy violates insurance laws, said Bob Hunter, an insurance expert with Consumer Federation of America. This scammer was trolling for George's credit card number.

• Vague information about pay. Investment advisers should be willing to tell you how they make their money. Both advisers approaching George were commission-based, which means they earn money by taking a portion off the top when their clients buy something. That's not inherently bad, but when commissions are high, they can pose disturbing conflicts of interest. Because one product George was pitched appeared particularly toxic, MSN Money suggested that he ask the precise commission the adviser would earn if he bought it. He did ask, and she got irritated. "She kept telling me that I wasn't paying her anything. The company was paying her." That much was true, but the insurance company was paying the agent out of George's pocket. She never gave him the details. George didn't give her his retirement money.

• A history of complaints. Even if advisers appear forthcoming, find out if they've left a litany of complaints in their wake.

George was dealing with insurance agents and securities brokers, which are monitored by state and national groups. The Financial Industry Regulatory Authority offers a national broker check via the Web or phone. However, experts say state securities complaint registries are more complete. The North American Securities Administrators Association can help you find your state securities department to get this information.

Insurance agents and brokers are regulated at the state level, too. The National Association of Insurance Commissioners provides a nifty map-based link to find your state regulator.

Beware: Complaint registries are not perfect. Even the most comprehensive can exclude pending problems and scams perpetrated by young agents and brokers, whose first mark could be you. If you feel uncomfortable, listen to your gut.

George's plan

It's tough enough to lose regular income, but losing a job also leaves many people scrambling for benefits. Worse, unscrupulous salespeople and con artists come out of the woodwork in times of economic strife, selling bogus or simply bad investments for your "rollover" retirement account, as well as health insurance products that may or may not be legitimate. Job scams also proliferate.

After talking to MSN Money, George signed on to his wife's health coverage but decided to leave his 401(k) plan with his former employer -- at least for now.

"I've got an incredible amount to do. If this is something I don't have to deal with right now, I'm going to leave it alone," he said.

In the meantime, he's applying for unemployment benefits online and filing out the Free Application for Federal Student Aid to see whether he can qualify for tuition help for his daughter.

Searching for a job will be next on his list.

"I'm not going to wait a long time," George said. "But if I can get some of these other things done, I won't feel like I'm drowning. I think I'll make a better impression in a job interview, if I can get my act together enough to be calm."

Updated June 16, 2009

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