Self employed individuals are used to making decisions independently. There are innumerable options for health insurance available for self-employed individuals that you will feel spoilt for choice. The information provided in this article will help you understand the various types of policies available which will in turn help you choose the perfect one for you and your family.
Group Vs Individual Health Insurance
The group health insurance policy offers a better coverage at much lesser premiums as compared to individual policies. Unfortunately though, it is almost impossible for a self-employed individual to opt for this policy because of not having any employees. Therefore, while planning to purchase a health insurance policy for self-employed people, it is highly recommended that you ask the insurance provider or agent the qualifying parameters for a group plan.
An individual health insurance plan will provide the required coverage for your family in case you are not eligible for a group insurance plan. The primary drawback here is that the costs will considerably go up because it takes into account the health history of each individual. Added to this, the individual health insurance plan in not as liberal in nature as the group plan.
Health Savings Account
This plan, which has been introduced recently, acts as a savings account for fund accumulation needed for normal but qualified medical expenses in addition to being a health plan with high deductibles. The amount you contribute towards the saving account and the premium for this plan is tax deductible. If used for qualified expenses, the cash withdrawn from the savings account is also not taxable. There are legally set contribution limits which are susceptible to change each year.
Supplemental Health Insurance
One of the common reasons for family bankruptcy in the US is work loss due to disability. Annually about 25% of the workers aged 30 and above take a month off due to disability. While some disabilities happen naturally, there are others which are caused due to work.
Employees suffering from injury and illness caused due to work get benefits from the workers compensation insurance, self-employed people cannot enjoy that luxury. This is where the supplemental health insurance plan comes into play because it covers the loss of earnings for self employed people who do not have the workers compensation insurance coverage.
In addition to covering loss of income due to work related injury and illness, the supplemental health insurance policy also takes care of the loss of income due to off job illnesses too. While some supplement health insurance plans pay for treatments that do not come under the purview of regular insurance coverage, there are some plans which offer cash benefits to cover medical costs when you are not able to work.
Opt for free health insurance quotes now. Know more about how simple it is to purchase a health insurance plan.