The old adage – health is wealth – is far more relevant for the self-employed as “sick-leave” due to ill health could mean a loss of business, i.e. more expenditure and potentially, fewer earnings. Your health is, therefore, in direct connection with your professional economic condition. Thus, when it comes to preparing for your future it’s vital to choose an insurance plan that best fits in with your business plan. And being self-employed, you need to make sure that you’re aware of what you need now as well what you could require for the future.
Here are a few points to keep in mind when you’re considering health insurance as a self-employed individual:
1. Start young
Insurance premiums work on the basis of risk, so remember that it’s always best to insure yourself early in your life. When you’re young and health risks are lower, finding affordable health insurance coverage becomes easier. You also need to keep in mind that as you continue to grow older, the health insurance premiums will continue to get higher.
2. Compare coverage options
Evaluate all details of your desired insurance plan and what it covers. Don’t make any hasty decisions as what might ‘look good’ on paper, might not be the best for you in the long run. Read the fine print or talk to your agent or the company if you have any doubts.
3. Be prepared
When considering a plan, make sure you know exactly what documentation would be required to process it. Personal details like age, the industry your business is from, your health record etc. are things that every insurance company would require to process your policy. Although things are much simpler now, thanks to the digitisation of data, it does nonetheless pay to have your files on hand for speedy processing. In case you have employees working for you whom you wish to cover under a plan, get their relevant data ready as well.
4. Manage your money
Calculate your affordability for insurance. Make sure your expected monthly/annual income is enough to cover your premiums. Any business, be it a solo venture or a small company; would have to take into consideration the unpredictable side to the marketplace. Since you may be working alone and/or have a small team, you would have to be on top of things for your own sake. If you do end up making more money, do not make the mistake of overlooking possible payments that may be pending. Chances are, you could have some premium tax credits waiting to be paid back.
5. Marital status
One way to be a successful freelancer or a self-employed entrepreneur without having to worry about health insurance is to have a spouse who works as an employee. Many self-employed people swear by this. When your spouse, who’s working with you, is signed-up under your health plan, it is likely to be less expensive than other options.
If you’re single, then research is vital. Various sites offer comparison offers to make things a little simpler. You could either purchase a health plan on your own through the internet or through an insurance agent. When it comes to the more personal approach of working with an agent, be a smart consumer and don’t go with the first one that offers you “the best deal”. Meet with others and compare the offerings.
6. Lock-in rates
With the passage of time, many insurance companies tend to increase their premium. But if you’re looking for stable rates, you need to search for policies that offer a ‘rate guarantee’. A rate guarantee ensures that you have to pay a fixed amount that’s decided at the start of the policy.
7. Pre-existing health condition plans
In case you happen to have an existing medical condition, you’ll need to look for plans that are made specifically for you. These plans tend to cover high-risk and you will be well prepared for your future. This would also be applicable for any employees you may have working for you.
Article Sourced from:
HealthCare.gov – https://bit.ly/1NujKEh,
Rejuvenationmedia.com – https://bit.ly/2iCGAll, and
Pocketlawyer.com – https://bit.ly/2iZwxVp