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SolveYourProblem
Article Series:
Health Insurance
Health
Insurance for Self-Employed is Important
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.
Click here to to view health insurance quotes, compare plans side-by-side and apply for the most affordable health insurance within your budget. I did this myself (June 17, 2011) to change my health insurance policy. Saved me $84 per month (or $1,008 per year). It's my SolveYourProblem recommendation.
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by SolveYourProblem.com
: 2006
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