The Basics of Medical Insurance for Self Employed

2007-09-19 11:17:43

( Health )



Sickness and disability is one of the greatest uncertainties that self-employed individuals like you can experience in your life. However, you can augment this uncertainties by getting yourself a medical insurance for self employed. In this kind of plan, a private insurance provider or government owned firm handles your medical expenses in times of illness or disability. In exchange for the coverage, you need to pay monthly fees to the insurance provider.
A self-employed individual may include farmers, contractors, lawyers, freelance writers, and entrepreneurs. Here we will take a look at the difference between medical insurance for self-employed and a regular health insurance.

Self-Employed versus Regular Health Insurance

Getting self-employed health care can be more expensive than regular heath insurance. This is due to the fact that the cost of the premium is distributed compared to smaller entities. For this reason, people are having second thoughts in getting self employed health.

The good thing about self employed health insurance is that it is 100% tax deductible as compared to a regular medical insurance which deducts taxes and other duties to the cost of premium.

Other considerations

If you want to reduce the amount you will pay for getting a medical insurance for self employed, you can opt for family coverage in the corporate insurance plan of your spouse, if he or she is employed. Likewise, if you have between 2 to 50 employees, you can opt for group insurance coverage.

Moreover, if you are planning to quit your job, another viable alternative is to get Consolidated Omnibus Budget Reconciliation Act (COBRA) insurance. This law mandates your employer to give you the option to remain as a member in their health insurance package. However, you will have to settle the full monthly cost of your premium. You could be amazed at the huge cost of the insurance.

If you will be managing your business for only a short term period and eventually return to the corporate world, then you can go for a temporary health insurance. This is the most affordable kind of health insurance accessible in the market today. The only setback of this is that as you become older, the cost of your annual premiums becomes higher as well.

If any of the methods in reducing the cost of medical insurance for self employed is not favorable to you, then there is no other recourse but to get a regular insurance plan. They could be expensive but plays a vital role in securing your future.


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