One of the downfalls for many self employed is finding the right self employed insurance for themselves and their families. Many people don’t know where to look, or even what options they have. If finding self employed insurance doesn’t sound like an ideal situation, there is help out there for finding the insurance that’s right for you.
Self employed insurance literally is just that. Insurance you have to find on your own when you work for yourself. Self employed insurance isn’t as straightforward as receiving a package deal when you sign on with the company. Since it’s your business, you are responsible for finding the insurance that not only fits your budget, but your personal needs as well. These days, however, there are people out there who can help you find exactly what you need in insurance. These self employed insurance agents can take the hassle out of finding the right insurance for you. This agent can tell you about short-term insurance, which last from one month up to one year. This type of insurance could help you when you’re starting your business and can’t afford much coverage.
Other options for self employed insurance are fee-for service, HMO and PPO insurance. Fee-for service is exactly what it sounds like it is. You pay a percentage of the cost for every doctor’s visit and the insurance company pays the remaining percentage. Usually this percentage is 80 percent for the insurance company and 20 percent for the individual. For this to work, though, the individual must first meet a yearly deductible; usually between $200 and $1,000. HMO and PPO insurances are similar because they both use co-pays rather than deductibles. In this case, the individual pays a certain amount, usually $5 to $20 for each doctor’s visit. You are limited as to which doctors you can see with HMOs and PPOs, and you need a referral to see specialists. PPOs usually have a larger selection of doctors, though.
One last piece of information a self employed insurance agent can give you is that health insurance premiums can be deducted from their federal taxable income. The important thing to remember is that the amount can not exceed the amount of your actual income! You’re probably not a self employed insurance genius yet, but hopefully you’ve learned about the different options available for the self employed when it comes to choosing the right insurance. Also, remember there are people out there who want to help you make this decision easier for you so you can focus on what’s really important, your business!