In this life, it is an exciting feeling to be your own boss. People admire having their own businesses and doing things they are passionate about without relying on their employers for income.

On the other hand, being employed comes with benefits such as health insurance, retirement benefits, pension, leave or offs, and several other benefits.

So if you are self-employed, what options do you have in the healthcare world?

This is one of the most asked questions as people try to seek answers on health insurance for self-employed.

Luckily, we shall be covering in detail everything you need to know about health insurance for self-employed individuals. You will need to contact us to get started with your health insurance. They offer a variety of plans that are perfect for self-employed individuals.

How Do I Get Health Insurance If I Am Self-Employed?

According to research, it is clear that self-employed professionals could multiply in the coming years. This means that more people will be looking for health insurance options. In this section, we are going to discuss five ways to get health insurance if you are self-employed. So let’s jump right into it.

1.     Health Insurance Marketplace

This is one of the most reliable and great healthcare insurance options when you’re self-employed. For you to apply for the Health Insurance Marketplace you need to be an independent freelancer or contractor who doesn’t have any employees.

In order to confirm eligibility required to visit where you are going to fill in answers to some questions.

Once you are approved you have some options to choose from. It is also important to note that the rates are dependent on the amount of income you earn.

The two major plans under the Health Insurance Marketplace include:

  • High-deductible plan

This plan has lower premiums but higher deductibles. The plan is useful for people who are in good health generally and do not expect any future accidents.

This health insurance plan has a higher yearly deductible than a regular plan, fully covering routine preventive care. The minimum deductible differs every year. The Internal Revenue Service or IRS defines a high-deductible plan as a plan with a deductible of at least US$1,400 for individuals and US$2,800 for families.

  • Medicaid

This plan is suitable for people with low incomes. In addition to this, it covers disabilities and people with the age of over 65 years.

Unlike the high-deductible plan which has an enrollment period with Medicaid, you can apply at your own time as you wish.

2.     Online Insurance Sellers

If the health insurance market does not work for you, you can go online and look for different insurance companies available.

Most insurer allows you to compare the different plans. Make sure that you clearly define your needs so that you can select a plan that suits those needs.

It is important to note that these plans may be costly depending on your health care needs.

3.     Short-Term Health Insurance

This is also a great health insurance option that provides coverage for a specific amount of time. The best thing about short-term health insurance is that there is no enrollment period and you can visit a hospital or a doctor of your choice.

Depending on the state you are in, you can receive a cover of up to 36 months. Note if you have pre-existing health issues you might be denied the coverage.

4.     COBRA

Consolidated Omnibus Budget Reconciliation Act, is our insurance coverage whereby you can extend your health care plan from your employer upon leaving your job.

It extends your current health care plan temporarily; however, you need to know that you are the one who will cover the monthly health care premiums because you are no longer employed.

Since your employer has paid a great portion of your premiums, it will be your responsibility to continue paying so it can be a more expensive healthcare insurance option.

5.     Special Interest Groups

This is another great option for self-employed to get healthcare insurance. There are several groups that have formed to provide healthcare insurance services to those who are employed.

Some of the most dominant special interest groups for health insurance include:

  • NASE (national association for self-employed) it offers day-to-day help for professionals who are self-employed.
  • The freelancer union is another special interest group that offers health insurance coverage for freelancers.

As you say they have various options that you can choose to get your health insurance when you’re self-employed.

Benefits of Self-Employed Health Insurance

Being self-employed means having your own livelihood such as owning a business or working as a freelancer. Whatever the case, it means that you control everything in your life including your healthcare.

1.     Protection against Life Events

When you are self-employed you need to be insured of anything that might happen in your life.

Life events such as marriage, major surgery, or a newborn baby require you to plan in advance, and having a health insurance plan will be a great advantage.

2.     Help You Save Money

Paying your medical bills out of your pocket can be very costly. This is not the case if you have health or dental insurance coverage. You are going to save a lot of money as a self-employed professional.

3.     Peace of Mind

Another benefit of self-employed health insurance is that it will give you peace of mind knowing that you are fully insured.

As an independent person, it might be difficult to predict the amount of money you’re going to earn in one particular month or year.

Health issues may arise which might cost you a lot of money but when you are insured you can have peace of mind knowing that there’s someone you can rely on if such cases arise.

4.     Cashless Insurance Benefits

Depending on the health insurance company you choose, you can make an arrangement that when you get sick all the medical expenses will be transferred to them.

This means that you are not going to go back into your pocket to pay for the treatment. Many self-employed individuals do not have a consistent income and therefore if you have a plan whereby you will not be required to produce cash it will be efficient for you.

5.      Tax Benefits

Most health insurance policies are eligible for tax deductions and write-offs. Taking advantage of these tax benefits will help you save a lot of money as a self-employed person.

Maternity Benefits

Also known as MA, the benefit is designed for women who don’t qualify for statutory maternity pay. This makes it one of the key maternity benefits for those women who are self-employed.

To get the maternity benefits you can claim them as soon as you get pregnant for up to 26 weeks.

If you’re a small-medium enterprise owner or a freelancer, maternity benefits will suit your needs. The process of getting a child will be compensated.

Parental Benefits

If you’re self-employed and you are a parent, there are various dental health benefits that you can get to make your life smooth.

Enjoying parental benefits when you are self-employed can be a doubting task. But there is a way around this.

There are several companies working closely with self-employed parents to help them get these benefits. They are really taking off huge tasks from parents of claiming the benefits.

Don’t be left out when you are self-employed. Enjoy the parental benefits. Conduct some research on the best companies to help you out.

Sickness Benefits

You might get sick and it is important to know your benefits as a self-employed person. As a self-employed person when you fall sick you’re entitled to get sickness benefits from the authority.

You need to realize that you are entitled to sick benefits after two weeks of your sick leave. You do note that there are requirements that you must meet in order to receive these benefits.

The health insurance companies will help you to claim these benefits. They will evaluate your situation and help you to come up with a plan whereby you will effectively get your sickness benefits.

As a self-employed individual, it is clear that you should not suffer in silence. These health benefits are available from the government and authorities and they can really help you.

You should realize that all these benefits are not enough. You should go a step further and look for an appropriate health insurance plan to fulfill your personal needs and those of your family members.

What Are the Different Types of Insurance When You Are Self-Employed?

If you’re planning to become a freelancer or a self-employed or even start your own business, you cannot afford to miss the following 6 important types of insurance.

1.     Health Insurance

One of the biggest disadvantages of quitting your job is losing health insurance coverage by your employer.

You might be used to getting your monthly premiums deducted from your paycheck but having your own insurance policy can sometimes be daunting and challenging.

You will be required to find your own insurance coverage which can be a lot of work especially if it is your first time doing so.

You cannot compromise on your health insurance and therefore you need to look for a reliable health insurance policy as a self-employed person.

2.     Dental Insurance

Dental insurance for the self-employed is also very important. Dental insurance is considered a medical expense. If you’re self-employed you need to get an effective dental insurance plan.

The best plan is the one that meets your needs and those of your family.

3.     Disability Insurance

An accident can happen and you might get hurt. This can make you unable to work anymore. This will require you to raise money for your medical bills on your own.

But with disability insurance, it will be possible for the coverage to help you stay afloat financially until when you are able to stand and walk on your feet again.

4.     Business Insurance

When you are self-employed, your business is the main source of income. It is therefore recommended that you look for reliable business insurance that covers the damage to your business property or even theft.

Comprehensive business insurance is preferred because if you have employees in your business, it will cover them.

5.     Life Insurance

It doesn’t matter how old you are but it is very important to have life insurance in place. This is important because it will help you during potential loss because of your death.

There are various options available for life insurance. Make sure that you do your research on where to buy the most effective one.

6.     Liability Insurance

This is very important because it helps protect you against negligence claims. Depending on the type of business you own there are different types of liability insurance to choose from.

Ensuring that you have the appropriate kind of insurance in place is important. Being self-employed requires you to put effort into budgeting and being insured.

How Much Does Health Insurance Cost If You Are Self-Employed?

There are so many factors that could contribute to health insurance costs. In this section, we are going to explain some of the typical costs of health insurance as a self-employed individual.

It is your responsibility to put into consideration various factors which can affect the cost of your health insurance when you’re self-employed.

Depending on your state all your current health insurance costs can vary widely. To help you make the right decision we are going to look at the important factors which you must consider when selecting appropriate health insurance.

Factors to consider when choosing health care insurance

1.     Use an Agent or a Broker

This can be a great solution to your health insurance issues because you help you understand the options that you have.

If you don’t have any idea where to start when you’re looking for appropriate health insurance if you’re self-employed then I suggest that you look for an insurance agent or a broker.

This will save you a lot of money and time if you get an honest broker they will help you to get insurance covers and plants which are low cost.

2.      Evaluate the Health-Care Support That You Qualify For

Make sure that you understand the support that you are eligible for depending on your income and your current health status. If you had been in previous employment then it will be easier for you to know the healthcare support you qualify for.

3.     Your Income Level

This one is very important because you ought to select healthcare support that is in line with what you earn as a self-employed person. You may qualify for federal health insurance like Medicare if you have a disability or severe medical condition, or if you’re over 65 years old or older. 

4.      Out-Of-Pocket Expenses

Out-of-pocket expenses pertain to a policyholder’s share in the premiums or cost of health insurance. These expenses include money spent on co-pays, co-insurance, and deductibles. Health insurance plans often have an out-of-pocket maximum, capping the insured’s yearly pay for healthcare expenses. You can deduct some out-of-pocket expenses from income taxes or as a deductible.

This one is very important because it is up to you to plan your finances in advance. Some insurance companies require you to pay upfront before the health insurance coverage begins.

Some of these expenses may cover things such as immunization cancer screening etc. 

5.     Future Expectations

It’s crucial to have a health insurance plan that also covers future emergencies and expectations. Hence, when comparing policies and insurance companies, you should think of your healthcare needs for the next two to three years.

You cannot predict the future but you have an insurance company that will inform you about the coverage and the future is a location that might affect your insurance. A good example is when you are expecting a baby or a major surgery. This way you’ll want to ensure that the insurance company you choose caters to this.

Hence, it’s essential to choose an insurance company that can help anticipate your needs by offering valuable health plan options. In addition, knowing the emerging health trends is imperative to set your proper health care expectations.

Can I Deduct My Health Insurance If I Am Self-Employed?

As we saw earlier when you’re self-employed you’re in control of your finances and your health insurance. You will be able to deduct premiums that you pay for both dental and health insurance for yourself and your dependent.

There is also an important factor to consider. One of your deductions does not exceed the income you collect from your business and will not be eligible.

There is a rise in the healthcare cost and therefore if you get a deduction it’ll save you a lot of money. This will keep you healthy and happy.  

How to Take Advantage of Self-Employed Health Insurance Deduction

Self-employed and taxpayers and be able to deduct the insurance premiums. This is applicable to age-based premiums or long-term premiums.

Write-offs are usually available if you meet the requirements.

For you to take advantage of the self-employed health insurance deduction you need to understand that;

  1. Eligibility for this product is determined month by month.
  2. Where is the limitation depending on your income?
  3. If you are partners or LLC members
  4. If you want to do business and have employees you can take advantage of deductions as per employee benefit program expenses.

Qualifying for a tax deduction as a self-employed is important because it will give you a tax break. It is important for you to look for means possible to save as much as possible because the rising cost of health insurance and the tax deduction will help you to pay some portion of the premium cost.

If you need more help with the deduction you can contact your health insurance agent or broker to give you a step-by-step guide on dealing with all your personal and business deductions as a self-employed individual.

Self-Employed Health Insurance Deduction Rates

Self-employed individuals are required to pay taxes. The SE tax is for individuals who own businesses or are independent contractors or freelancers.

They must file their own tax return every year. The SE tax is usually a mixture of Medicaid mad Social Security.

It is due every year and calculated on net earnings. Sometimes it can be due quarterly depending on some cases.

Since you are self-employed you are required to pay the entire tax amount of 12.4%. If you were employed, you share the burden with your employer and pay 6.2% instead.

Currently, the self-employed tax rate stands at 12.4% for Social Security and about 2.9% for Medicare.

The amount is taxed on the first $132,000 of total income. An additional 2.9% for Medicaid brings it to a total of 15.3%

It is therefore important to know all about rates and deductions as a self-employed person to be able to cooperate with the authority.

This was a piece of intensive information about health insurance for self-employed. I hope you got some value from this. Use this information as a guide to help you navigate through this journey of self-employment and health care.

Nicolas Desjardins

Hello everyone, I am the main writer for SIND Canada. I've been writing articles for more than 12 years and I like sharing my knowledge. I'm currently writing for many websites and newspapers. I always keep myself very informed to give you the best information. All my years as a computer scientist made me become an incredible researcher. You can contact me on our forum or by email at [email protected].