Self Employed Health Insurance Coverage

By: Kent Pinkerton

Your self-employed business could be a one-man show, a husband and wife team or one that employs a handful of people. In the first two cases, an individual policy or a family health insurance plan may be recommended unless you belong to a relevant organization.

If you feel that your business is likely to expand in the near future, you could take out a short-term policy and wait until the situation changes before deciding on the type of coverage you need.

The cost of a temporary policy is normally less than $100 per month. The premiums of self-employed health cover are tax deductible.

If you employ two or more people, it is considered a combination of self-employed and small business, and you may qualify for group insurance. This insurance would cover you and your employees, and the premium could be 100% tax deductible. Employees could also save on pay-roll taxes.

The National Association for the Self-employed will give good advice as well as formulate a good health coverage plan to insurance companies, agents and members of their organization. According to their specific requirements, employees could take supplementary coverage if they choose to. It is not compulsory for the employees to join, but there must be a minimum of two participating to be eligible for group insurance.

You can save money and service charges and may even get discounts if the premium is paid annually up front.

The business of health insurance is undergoing many transformations, and your personal requirements and business conditions may change. Therefore, it is wise to review your healthcare coverage annually and update it. Remember, that group plans are cheaper. By joining an association of self-employed, you can take advantage of this. Before adding additional health coverage, check whether the main policy covers what you need.

If you opt for higher deductibles, the premium would be lower. A deductible is the amount you must pay before an insurance company pays your medical bills.

Before buying health insurance, check provisions relating to pre-existing conditions. Always chose a policy that does not take long to become operational.

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