Time and fate can bring people to different places, opportunities can even make those who are employed opt to become self employed. Self employment is becoming more and more popular nowadays; it is usually equated with entrepreneurship and gaining profits at your own time table. However, becoming self employed in the perspective of health insurance companies is adding up to your incurred risks. Most insurance companies deem that those who are unable to find a job in an existing firm is more likely to be negligent in paying his or her insurance dues. But not every self- employed is like that, here are some tips in maintain your policy even you are self employed.
The first step you should take is to keep your insurance policy. Under the Consolidated Omnibus Budget Reconciliation Act (COBRA) of'86 it is mandated that you can leave your job and keep your current coverage for up to' months at group rates. This applies as long as your previous company employs 20 or more people and the reason for your leaving is not being fired due gross negligence or incompetence. However, choosing to go self employed would make the premium rate of your medical insurance shoot up by around 50%- 72% because while being employed and insured at group rate you are just paying the 28% of the policy premium.
The COBRA mandates the right to keep your policy at group rate for' months to assist you by buying you time to find a new and cheaper insurance policy for yourself. The second best step is to find the perfect opportunity in the open enrollment season of your insurance policy and sign up for the most affordable health insurance you can find. Signing up for a cheaper insurance policy before leaving your job will put you in a better position after becoming self employed.
The last step you should take after becoming self employed is to find a reputable insurance company through comparing their rates and coverage packages through online quotes and agents. If you can do your homework well enough, it is most probable that you can spot a fitting insurance policy that will cater to your needs but is still affordable in your self employed status.
Low cost health insurance can also be gained through HSAs or health saving accounts. In the HSA you deposit pre-taxed dollars to compensate for the future expenses that are not covered in your cheaper insurance policy.
Author Resource:
In order to get further clarification on affordable health insurance and understand its benefits better, log in to Insurancecaredirect. This website will give you more information on all types of healthcare options that will be of use to you.
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