There are a wealth of advantages to being self-employed. You have the freedom to set your schedule and the authority to make decisions without resorting to someone higher than you. However, for all its benefits, self-employment has its inconveniences.
In 2019, 55.4% of Americans had employer-sponsored health insurance. If you’re self-employed, you lose out on that convenience. However, while 55.4% had employer-sponsored insurance, over 90% had insurance coverage.
So, the question is, “How do I become insured?” The answer is to find self-employed insurance. Self-employed medical insurance isn’t the most difficult to attain, but it can be confusing to navigate.
Fortunately, that’s why we’re here. In this article, we’ll help guide you through the processes for attaining self-employed insurance for you and your small business. Let’s get started!
Shop Around for Affordable Self-Employed Insurance
When you no longer have an employer sponsoring your insurance, you should treat it like it’s any other product on the market. This approach means shopping around for the best deal at the optimal price.
In many cases, people looking for health insurance spring upon the first offer they can afford. People become especially prone to this if they have a family to provide for. While this impulse is understandable, it can do more harm than good.
Before purchasing an insurance plan, step back and take a long look at the options available to you in your area. Instead of looking at plans through insurance companies, use licensed online agents to compare policies among leading carriers.
Note how their rates and benefits compare. Check out the reviews left by other customers as well. These reviews are often the best indicators of the insurance company’s customer service.
Once you see a plan that works for you, apply for coverage. It makes no difference whether your purchase the policy online or not; you’ll pay the same monthly premium regardless.
Lock-in Your Insurance Premium Rate
When searching for independent insurance, one vital factor to consider is whether the insurance provider can increase your monthly premium. If so, there’s a strong possibility your rate may increase in the months ahead.
You can help prevent these extra costs from harming your budget if you search for providers with a rate guarantee. Some carriers may lock in your monthly rate for the first year of your coverage.
Alternatively, many providers will allow you to lock in your rate for a more extensive period if you pay an extra fee. If the provider makes an offer like this, make sure you do the math. You don’t want them to trick you into paying more through this additional fee.
See if Your Health Insurance Are Tax-Deductible
If your state classifies you as a self-employed person, it may allow you to deduct your self-employed health plan premiums as a business expense. However, there are a few catches to this option.
First, the federal government will not allow you to deduct premiums you paid during months in which you qualified for employer-sponsored insurance. Furthermore, the government doesn’t allow you to subtract an amount greater than your net income for that year.
If you’re interested in whether this option exists for you, consult with an accountant or other tax professional. They can inform you about different types of self-employment status. With this information, you can determine how this status will affect your taxes within your state.
Small Business Insurance Plans
If you’re self-employed, there’s a high likelihood that you run your own small business. If so, you may be wondering how to attain insurance for your business. So, for the rest of this article, we’ll discuss how to solve this problem.
First, you must decide which type of insurance you need. Generally, six types of insurance exist for businesses. These types include:
- General liability insurance
- Product liability insurance
- Professional liability insurance
- Commercial property insurance
- Home-based insurance
- Business owner’s policy
The type of insurance you should purchase depends on the kind of business you run. Generally, you may find business owner’s policies and home-based insurance to be the best for many small business owners.
However, product liability insurance and general liability insurance cover the risks that a small business may face. So, before you decide on what insurance plans to purchase, take a few moments to assess your risks.
What kind of accidents, natural disasters, or other circumstances could harm your business? Try to take as many of these into account as possible before you begin shopping.
If you have several employees, you may also want to consider self employed workers compensation. The last thing you want for your business is for an employee to get hurt on the job and not receive compensation. It leaves your company open to a lawsuit, in addition to burdening your conscience.
The Next Steps
Once you’ve determined what types of insurance seem best for your business, the next step is to find a reputable agent. Commercial insurance agents can help you find policies that suit your company’s needs.
If you already have an insurance plan in mind, conferring with an agent makes for excellent confirmation. You may also find that the agent can point out considerations you’ve overlooked.
However, keep your wits about you as you search. These agents earn commissions from insurance companies when they sell policies. As such, you must find an agent who cares about your needs as much as their own.
Lastly, don’t settle on a policy permanently. If your business grows, your liabilities grow alongside it. Make sure you always have the kind of coverage that best benefits your business.
Find Your Self-Employed Insurance Today!
A health plan is always essential, especially if you have dependents who rely on your coverage. If you haven’t already, make self-employed insurance your top priority. With the advice in this article, you have all the tools you need to shop for policies.
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