When an individual is self-employed, they are pretty much responsible for financing the benefits that a traditional business would normally offer. This encompasses setting money aside for their retirement, saving money in prevision of potential slow economic periods, and supplying their personal health insurance. As one may know, health care bills can pile up quickly even for a person who is usually healthy. Having health insurance for self employed has the potential to prevent the occurrence of any medical bankruptcy. In this article, we will provide some general information about health insurance for self employed individuals. More specifically, we will discuss about the high deductible plan with a health savings account, the spouse’s plan, the professional organization, and the traditional individual insurance options that can all be considered to be health insurance for self employed.
A high deductible health insurance plan with a health savings account, also referred to as a HAS, is an option to which a person who is self-employed has access. A high deductible insurance plan includes a deductible amount of at least one thousand dollars before the health insurance company starts to pay for any health care cost that is incurred by the business owner. After the individual has reached the deductible amount, the insurance company begins to take care of all the expenses that are associated with the care of the patient. These types of health insurance plans propose smaller monthly premiums, but the individual is required to pay for most of their care with their own money. A person who is self-employed may contribute to their health savings account, which is not subject to any taxes, and withdraw the funds in order to settle their deductible and also cover the health care bills.
If an individual who is self-employed gets married to a person who is employed, then they need to discover whether their spouse has a health insurance plan in which it is possible to sign up while being self-employed. There are several firms that propose health insurance coverage to life partners or partners that have been in a relationship for a very longtime. This option is worth the consideration, particularly if the person has pre-existing medical conditions and has encountered difficulties to be eligible for an individual health insurance plan. In addition to that, self-employed people need to be informed that the premiums in group plans are typically inferior than those in individual plans.
An alternative for a person who is seeking health insurance for self employed is to become a member of a professional organization that proposes insurance plan options to its members at a discounted rate. Indeed, there are many organizations for sales professions, for writing professions, and for almost any other professions. These organizations will generally list all their health insurance plans as one of the advantages that new members will get from joining them. If the individual is already member to a professional organization, then they ought to find out whether it proposes a lower or group policy to its members. Many of these health insurance plans shall not be as interesting as what an individual can be eligible for on their own, which is why self-employed people are strongly advised to compare all those plans to the other options that they already have.
A traditional individual health insurance plan is another alternative for a person who is self-employed. Even though the monthly premiums of this plan are higher than those of a high deductible plan, an individual will be able to visit their physician and make co-payments rather than paying the entire cost for the visit. This option is particularly interesting if the individual thinks that they will have trouble saving up for the deductible.