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Overcoming the Self Employment and Insurance Hurdle
There are a great many people who will find it impossible to break into self employment without the cushion of health insurance as they've known it. However, there are certainly options and plans that cater to those who've chosen the relative freedom of self employment. Insurance premiums are often higher than many who've worked for large corporations are used to paying, but those who've paid insurance premiums from a job with a small company may just find the rates far more reasonable than they thought, with a few helpful hints.
Those who have working spouses who are eligible for insurance are especially lucky when it comes to getting insurance. The laws regarding this differ from state to state, but in nearly all cases a spouse (and sometimes domestic partner) can make the switch when their own runs out.
Even though you'll be making all the contributions to your insurance policy as one of the self-employed, you may be eligible for group rates as as part of a pool for those who require self employment insurance. Your state may also have a special pool for the self employed. Be sure and check to see if your state has an agency that deals with issues of group pools.
Some policies will follow you for several months after you finish working for an employer. If you're consciously quitting from a position with a larger or rather generous company, you should check into expanding your coverage for as long as possible. It is likely your premium will go up a bit, but it is almost always less that just applying for a policy as a sole proprietor.
The cost and rigors of applying and paying for even a single policy are such regarding self employment, insurance often waits for a few years when people are just starting up with their own enterprises.
There are quite a few instances where such a lack of insurance is simply unacceptable. Children and other responsibilities such as older parents, an inheritance, a medical condition or anything else that changes your life in such a way that you need the security of benefits. When contemplating self employment, insurance needs can become of primary concern.
Many younger people find themselves insuring for only catastrophic ailments when they insure themselves at all. It is certainly a major expense. Since most of the self employed have only themselves or unpaid family members involved in the organization, there are no employees to woo with benefit packages. As is very often the case with self employment, insurance can take a backseat, but if you're working with dangerous materials or conditions, one uninsured accident can put you out of business without recourse.
For those pursuing self employment, insurance can seem more complicated than it's worth. A health insurance councilor is available in many places to help you decide what choice is right for you.
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