There’s a lot to love about being self-employed and working as your own boss. Unfortunately, the lack of benefits (like retirement fund matching and health insurance) isn’t one of them. If you’re self-employed and are currently without health insurance coverage, you may be wondering where to begin. By following some basic steps, you can find a plan that works for you and your budget.
Know Your Options
Start by understanding what your options are when it comes to shopping around for and purchasing health insurance. Many self-employed workers end up buying coverage directly from an insurance company. However, if your employer recently laid you off, and that’s why you’re now self-employed, you may actually be able to purchase COBRA coverage as an alternative. Health savings accounts are another viable option to consider when you’re self-employed.
Take time to explore all of your options before you decide on a plan. The HealthCare.gov online marketplace is a great place to start comparing coverage and plans if you’re unsure where to begin.
Check for Subsidies
Worried about affording health insurance coverage? Be sure to check your eligibility for subsidies and other financial assistance that can offset your monthly premium. Some subsidies are available based on income, allowing those who make under a certain amount to secure a more affordable policy without sacrificing coverage in the process.
Take Advantage of Tax Deductions
No matter which type of health insurance coverage you end up with, the good news is that a lot of your insurance-related costs will be tax-deductible. This means that you may be able to deduct the amounts of your policy premiums (as well as deductibles or other health-related expenses paid) from your taxable income. By reducing your taxable income, you can also lower your tax bill and save yourself some money come tax time.
Exact deductions can vary a bit based on the type of plan you have, as well as your income and financial situation. However, it is important that you keep a detailed record of all your health insurance expenses throughout the year so that you can claim every penny for which you are eligible.
Looking for More Guidance?
Navigating the world of health insurance coverage when you’re self-employed can be stressful and confusing. However, there are a lot of affordable options available to those who work for themselves. The key is taking the time to shop around and find the right policy to suit your needs.
Looking for more assistance when it comes to your financial decisions as a self-employed worker? It may be time to consult with a financial advisor. Our team at Counting House Associates is here to help! Reach out today to set up your free consultation; we’d be happy to speak with you, learn more about your current financial situation and goals, and further discuss what we can do for you.