Self-Employed Insurance Plans
From the minute a new business begins, the availability of comprehensive self-employed insurance plans is on every entrepreneur’s mind. Statistics bear out that employees who work with companies that have good insurance plans are attracted to jobs and stay on the job longer even if it means lower pay. However, for the individual entrepreneur to grow, he or she must begin with self-employment insurance for themselves and their family.
In the past, large corporations have had a distinct advantage by using their collective bargaining power to negotiate low insurance rates for all insurance. With President Obama’s health insurance plan, there are many benefits to the self-employed who can now obtain health insurance regardless of pre-existing health conditions.
But, the self-employed have other options. These options are available to members of organizations like the National Association for the Self-Employed and local Chambers of Commerce. Although the self-employed must pay membership fees to join these organizations, the group’s collective bargaining powers give the self-employed valuable opportunities to access comprehensive coverage in a number of areas at below market prices.
The self-employed can also acquire worker’s compensation insurance, product liability insurance, automobile insurance and disability insurance through state or private agencies. These rates are determined based on established industry historical risks. In most states, the self-employed are not required to obtain these insurance plans to cover themselves.
It is the more conventional, personal insurances that the self-employed need. The entrepreneur should regard these insurances as necessary overhead and may be able to receive tax considerations for certain insurances.
Below is a list of available coverage through trade organizations or Chambers of Commerce.
- Dental Insurance – Dental health is an important consideration for overall wellness and appearance. Most member-driven organizations offer a variety of dental insurance plans that can cover large or controlled conditions. Cost of this coverage can cost 15 –45 percent less than an individual would pay.
- Health Insurance – Like the self-employed, trade organizations are focused on health insurance, certainly the biggest insurance concern for entrepreneurs.
- Ancillary Care Insurance encompasses dental, eye, chiropractic care, alternative medicine therapies, diabetes coverage, and hearing insurance for the individual or family.
- Discounted Hospital Insurance – the group usually provides discounts at certain hospitals and provides negotiators to settle charges.
- Physician Care Insurance – the self-employed can save up to 45 percent for a variety of uses like blood draws, rehabilitation services, imaging services, diagnostic services and more.
- Top Tier Comprehensive Health Insurance with companies like United Health Care and Met Life.
- Term Life Insurance – This is a low cost life insurance plan that provides maximum death benefits between $25,000 and $250,000. Insurance companies report that being underinsured in terms of life insurance is having a death benefit that is less than three times the insured’s annual income. Term life usually does not require a full-fledged physical exam and although the policy accumulates no cash value, it can yield great peace of mind to family and loved ones. With Preferred Dentist Programs, the self-employed must use plan-approved dentists.
The rates for these policies are much lower than an individual would receive if they were on their own. Not only do the group rates represent a significant savings, but the group membership offers the entrepreneur more comprehensive insurance choices than they would normally have available.
Many insurance companies prefer to work trade organization rather than small businesses. For the self-employed who expect to grow, these group insurance plans offer many benefits.
Most self-employed entrepreneurs do not have the time to be worried about their insurance. Experienced business people value their insurance and realize the importance of discounted rates as much as the ability to resolve insurance issues once a year.