Having enough and being able to afford health insurance, is one of
the most nagging concerns for those who run their own business.
Many small businesses don’t offer health benefits to employees if
they have less than 20. It is hard and expensive enough to work for
yourself, but having to pay high prices for health insurance can
make life much harder. If you work as a consultant, freelance
worker, and other self-employed individual you will be allowed to
deduct all of your health insurance premiums and bills off of your
taxes. It is especially valuable because it is an above the line
deduction for Adjusted Gross Income (AGI), so you can take
advantage of this deduction even if you do not you itemize your
deductions on your tax return. For those persons opening a small
business, even the cheapest plan can be too expensive to pay for.
Between the overhead and invested money to get your business off
the ground, and the fact that most businesses take years to turn a
gain, you can find your self making ends meet the first few years.
But your medical bills and premiums are deductible, too. So, get a
plan and have your taxes reduced at the end of the year, it will
save you money in the long run for sure.
How to find Self-Employed Health coverage at a price you can afford
doesn’t have to be a headache. When you leave your employer to
venture forth on your own take advantage of your COBRA rights. This
law allows you to keep your coverage for up to 18 months after
leaving at a higher rate. Most employees only pay about 28% of
their policy. This will be a shock to the system because your
employer will no longer be paying for part of your coverage so you
will be paying the whole bill yourself. So in essence, you will be
paying for a higher group rate verses the original group rate on
the job, but this will buy you some time in looking for a new plan.
COBRA will at least get you through in case you need time to look
at many policies and find one that works for you.
Lighten your financial burden before you hastily leave your current
job if you can. This will allow you to have money put aside and
have researched other health plans that you can go to right after
leaving. If you purchase your own policy before leaving your job
you will still qualify for COBRA but the rates will be lower and
something you are used to. Make sure you have paid up all your debt
so the money you have saved can be used to start your business and
pay your insurance when you leave. If you will be working from
home, save some money and designate that for your medical expenses.
Most independent contract work pays weekly so that money can be
used for bills and other things till you start to make more. If you
are going to need a lone to start your small business, make sure
you are in the green credit wise. This can up the loan amount, so
you have some extra to put aside for bills. That way you can use
the money saved from your job just for insurance.
Don’t let time slip by you and forget to find a new insurance
company if you are on COBRA. They will only cover you for 18 months
and an extra 63 days past that if you haven’t. At that point they
could up your rates and not include any previously existing
conditions and that will just make your premium higher. So, utilize
the time you have and get a cheaper plan that works for you as soon
as possible. Why shell out more money and then also forget that you
are going to be cut off. If you have a spouse or partner who works
outside the home go on their plan. They will be getting a group
rate from their employer. You might have to wait till the next
eligible entry day, but that should happen before the 18 months of
COBRA has run out. Have your partner ask his or her employer when
they would be able to add you to the policy. Find out more about
why Self-Employed Should Make Health Insurance a Priority…
DISCLAIMER: This information is for educational and informational
purposes only. The content is not intended to be a substitute for
professional advice. Always seek the advice of a licensed Insurance
Agent or Broker with any questions you may have regarding any