Leaving a job, whether planned or unexpected, certainly brings with it many changes, neither all good nor all bad. This is especially true when it comes to your finances. From health insurance to retirement savings, there are steps you should take to keep your financial life on track (as best you can, given the circumstances).

By addressing these three key issues, you’ll avoid financial pitfalls and potentially a hit to your bank account while positioning yourself for long-term success.

1. Make smart health care decisions

One of the most pressing concerns when leaving a job is maintaining health insurance coverage. Without careful planning, you could find yourself without insurance. Fortunately, you have several coverage options.

• COBRA: If your employer provided you with health coverage, you may be eligible for a government transition program called COBRA. Passed during the Reagan administration, COBRA allows employees to continue their employer-sponsored health care plan for a limited time, typically 18 to 36 months. However, COBRA can be expensive because you will be responsible for the entire premium.
• Healthcare.gov: Another option is to enroll in a plan through the Affordable Care Act through the Online Health Insurance Marketplace. These plans are generally much more affordable than COBRA, especially if you qualify for income-based subsidies.

Whatever you decide, it’s important to sign up for a health insurance plan as soon as possible to avoid a lapse in coverage.

2. Hover over your 401(k)

Obviously, when you leave a job, there are a lot of things to do and think about: unemployment, updating your CV, networking, looking for a new position. It can all be a bit overwhelming. But even so, your retirement account is an essential element that should not be neglected.

If you had a 401(k) with your former employer, you could

• Cash it in
• Leave it in your old IRA
• Make it part of your new job plan
• Roll it into an IRA

Experts say one of the best decisions you can make is to roll it over into an individual retirement account (IRA) or new 401(k) with your next employer. Why do you want to do this? Deferring your 401(k) allows you to maintain control of your retirement savings while avoiding penalties and taxes.

An important tip: make sure the rollover process is done correctly, as failure to do so can result in unwanted tax consequences. The best solution would be to speak with your financial advisor to see which decision is best for you.

Need a new IRA? Click here for our picks for the best IRA brokers and benefit from tax relief in the year you make contributions.

3. Renew your health savings account

Not all employees have a Health Savings Account (HSA). In fact, only about 34% of eligible employees enroll in an HSA. But if you are one of them, make sure you manage your situation well after leaving your job. Since HSAs offer tax benefits for medical expenses, they’re something to keep in mind when you leave a job.

The way to do this is to find a new HSA provider, then ask the old HSA provider to have the funds transferred to the new account (they can be sent to the new account or to you directly). Follow up to make sure this happened, then continue contributing.

By rolling over your HSA, you can continue to use the funds for qualified medical expenses or you can invest them for future growth. Since HSA funds never expire, you can even keep them in retirement, certainly making them a valuable asset you’ll want to protect.

Yes, leaving a job is a major life change. But during this potential tumult, thoughtful financial planning remains necessary. Take the appropriate steps outlined above quickly to avoid unnecessary costs and stress during this important transition.