Health Insurance for Self-Employed
Being self-employed is rewarding, but those who are self employed will sometimes have a difficult time proving their income, qualifying for loans or even buying health insurance. Health insurance comes in many different ways, and the self-employed have plenty of tools online that make finding affordable health insurance easier. One of the first steps that people taking when becoming self-employed is continuing their health insurance that their previously employer provided. Those who choose to become self-employed are considered brave because of the responsibilities they will face with the many factors that need to be planned appropriately.
To continue health insurance from a previous employer when becoming self employed, people use the COBRA coverage. COBRA is a type of health insurance that allows individuals to continue their health insurance that was received during the time of employment. Individuals should expect to pay anywhere from 75 to 80 percent of what the policy costs during employment. In some cases, the self-employed will not be able to afford the cost of COBRA. The good news with COBRA is coverage can be extended for up to 18 months, which allows people time to find alternative health insurance plans.
Those who are self-employed and have used all of their COBRA coverage, or those who never received COBRA coverage will have the option of purchasing an individual policy from a private health insurance provider. It’s easier for the self-employed to obtain an affordable private health insurance policy when they and their family are healthy. Those who are self-employed and are single with no dependents will find it even easier to find affordable health insurance. Those who have a family are advised to seek out a health insurance policy for the self-employed that offers a wide variety of options.
Health insurance policies that offer a mix of options will allow for easier coverage for all family members that will be on the policy. In order to find the right policy, the self-employed will need to figure out how much coverage they will need to cover their family members and assets. It’s a well-known fact that the majority of bankruptcies are caused by those who don’t have adequate health insurance to cover unforeseeable issues that threaten their assets. The self employed who have a pre-existing illness will deal with the risk of being denied health insurance.
In fact, it’s highly advised that those who have a pre-existing illness take advantage of the COBRA plan in order to have enough time to find a health insurance policy that won’t be denied. Those who are married and self-employed will have the option of getting coverage through their spouse’s policy if the spouse’s employer is providing health insurance. In other words, families that have two working parents will have more options when it comes to buying health insurance and getting adequate health coverage. One factor that all self employed individuals should realize is that every state will handle health insurance differently.
In fact, in some states, guaranteed-issue health insurance plans are offered, like New York and Massachusetts. Guaranteed-issue health insurance is basically a policy that insurance companies must abide by. The regulation states that regardless of the individual’s health, the insurance company must provide coverage. In other words, the location of the individual who is self-employed will play a key role with whether or not they will receive health insurance if they have a pre-existing health condition. The biggest advantage with health insurance for the self-employed is the fact that premiums that are paid are deductible.