The ability to work independently and plan your work life is one of the best reasons to be an entrepreneur or freelancer. The only problem is that, when it comes to benefits like sick time or health coverage, you are also on your own to cover the entire cost – a cost that can become very expensive. While some unions and organizations have attempted to help freelancers by providing healthcare plans, many of these have failed due to the high cost of managing such plans.
While I'm not an expert, nor do I work in this field, I have had to cover my own benefits for the majority of my career, and have found that the options listed here provide some ways to enjoy affordable benefits. Of course, it's important for you to do your own research and consult insurance professionals -- but here are a few suggestions that could benefit you in the meantime.
Healthcare Marketplace
Thanks to the Affordable Care Act, national and state marketplaces provide a way to get significantly reduced medical and dental insurance rates for you and your family. There are numerous options available that can cover you and your family as far as medical, dental and vision plans are concerned.
The application process can be a bit daunting, however, and you need to be aware of all the deadlines. Open enrollment opens Nov. 1 and goes through Dec. 15, so it’s important to get started as soon as possible. There are experts available to walk you through the process; just know that you will need to re-apply each year as your tax credit or financial offset is based on annual income. As freelancers and entrepreneurs, we know that this annual amount continually changes so this can be a benefit, especially if your income rate drops unexpectedly.
Brokers And Insurance Agents
While we are accustomed to going online and doing our own research where health benefits are concerned, we forget that the human touch of a professional insurance agent or broker can help us find the deals that we may not know exist.
Or, they may be able to offer something that we couldn't otherwise access, or even provide some type of customized insurance solution. These professionals can also help you understand what all the various plans mean in terms of their policies and restrictions that can be difficult to navigate. Go to a site like the National Association of Health Underwriters to find a recommended and certified broker or agent for your insurance needs.
Professional Organizations
There are numerous professional organizations across industries that you can join as an entrepreneur or freelancer, including marketing and freelancer organizations or an independent contractor association. There are also alumni associations that may be available from your own alma mater. Just be sure to compare pricing first and look into the insurance marketplace already mentioned to determine which offers the best price.
Use search engines to look for directories of associations and organizations within your industry that you can join that may offer specific discounts on benefits you are seeking. One major organization to consider is the National Association for the Self-Employed.
Your Spouse’s Health Plan
If your spouse has a traditional full-time job, his or her health plan coverage may allow you to be covered as a dependent or, at the very least, any children you may have. It’s worth looking into as an option, as the premiums tend to be lower and the coverage significantly better.
Your Day Job
There is also the possibility of keeping your day job while you build your startup, if only to make the most of the benefits until you can grow your company far enough to be able to offer a company insurance plan that covers yourself and your team.
And, as you get ready to leave that position, look into the company’s COBRA coverage, which you can opt into for up to three years after leaving a job. While it’s expensive, it may still be considerably cheaper than getting your own insurance coverage.
Other Types of Insurance
As an entrepreneur or freelancer, you may also want to think about adding supplemental insurance policies like disability insurance that covers lost income should you become too ill to work. You may also want to consider life insurance coverage to protect your family.
Continually Review Options
Even when you pick an option, consider reviewing your options on an annual basis in case a change in your situation or in the laws can provide you with a better benefits package.
Remember that you must at least have medical coverage or you will face a penalty on your taxes. Also, having insurance coverage gives you peace of mind because you never know when you may really need it, so be sure to get covered and give yourself that sense of security.
