Tips for Buying Self–Employed Health Insurance

You've left the corporate 9–to–5 and are finally doing what you love for a living. Being self–employed also means you're responsible for all your own operating expenses, including the cost of self–employed health insurance. Even if you're in great health, this is one area where you don't want to cut costs.

First, if you fall ill or are injured, your health insurance will not only protect your personal finances, it will protect your business as well from unexpected and potentially large expenses. Second, because the number of self–employed workers has continually risen over the years, more and more health insurers are offering specialized health care plans designed for sole proprietors and small businesses.

When you shop online for self–employed health insurance, you may be surprised at the competitive insurance quotes you receive. Here, we'll give you tips on finding the right health plan for you while saving money.

On a Budget – High Deductible Health Plan (HDHP)

As with most insurance plans, the higher the deductible, the lower the premium. The same goes for this high deductible health plan. This is ideal for those that are in good health and rarely make visits to the doctor. It does cover what is considered catastrophic incidents or illnesses with a deductible that ranges between $1,000 to $5,000, with all remaining medical expenses covered.

Health Savings Accounts (HSA)

Health Savings Accounts go hand–in–hand with high deductible health plans, enabling you to not only defer income to earn tax free interest, but when you withdraw money to pay medical expenses, you also avoid paying taxes.

According to the Small Business Association (SBA) who endorses Heath Savings Accounts, to qualify your high deductible health plan minimum deductible must be at least $1,100 for an individual plan or $2,200 for a family plan. The annual out–of–pocket expense (including deductibles and co–pays) for one year cannot exceed $5,500 for individuals or $11,000 for families. High deductible health plans can have first dollar coverage (no deductible) for preventive care and apply higher out-of-pocket limits (and co pays & coinsurance) for non-network services.

Also know that if you are already participating in a Flexible Savings Account (FSA), then you cannot qualify for a Heath Savings Account.

You can work with your health insurance agent to understand the specifics of Heath Savings Accounts and how this program can be applied to your circumstances.

The High Risk Life Insurance Cost of Extreme Hobbies

If you're looking for a health insurance plan that resembles what you may have had with your previous employer, or if you have a family that needs coverage, a traditional health plan will provide you with the benefits you desire.

This of course will come with a higher premium, but has a lower deductible and plans pay from 80 to 100 percent of covered cost for most in–network care after the deductible is reached.

Group Health Plans

The type of Group Health Plans offered to individuals by insurance companies work differently than those they offer corporations. In many cases, you may only need two people in your company or entity to qualify. Or, if you are a sole proprietor you may be eligible to join other sole business owners through a business association. These group plans can bring power in numbers, enabling you to lower your premium while increasing your benefits.

Other Considerations

In addition to finding deals on self-employed health insurance, you may also want to get an online quote for life insurance. If you start hiring employees, building up your business and assets, have a family and a home, or all of the above, you'll need to ensure that debts and financial expenses will be covered in the event of your death.

If you haven't yet looked into business liability insurance, this also provides your business with protection against lawsuit claims filed against you or your company.

See how much you could save today on your health insurance. Get your free health insurance quotes today!

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