Self-employment comes with many perks, such as flexibility and independence. However, one critical aspect that self-employed individuals need to consider is health insurance.
Why Is Health Insurance Important for Self-employed Individuals?
Health insurance is essential for self-employed individuals for the following reasons:
- Financial protection—Medical bills can be excessive. Health insurance can shield you from unexpected expenses, preventing financial strain.
- Access to quality care—With insurance, you can seek medical attention promptly, helping ensure better health outcomes.
- Peace of mind—Knowing you’re covered lets you focus on your work without worrying about health emergencies.
- Tax benefits—Premiums paid for health insurance are often tax-deductible for self-employed individuals.
What Does Health Insurance Cover?
Health insurance typically offers financial coverage for the following:
- Medical services—Health insurance can help pay for doctor visits, hospital stays, surgeries and other medical treatments.
- Prescription drugs—Coverage typically helps pay the cost of prescribed medications.
- Preventive care—Many plans cover the cost of preventive services like vaccinations, screenings and wellness check-ups.
- Emergency care—Health insurance may help pay for emergency care, such as accidents or sudden illnesses.
- Mental health services—Some plans offer financial coverage for mental health counseling and therapy.
- Rehabilitation services—Health insurance may help pay for physical therapy, occupational therapy and rehabilitation after injuries or surgeries.
Should a Self-employed Person Get Individual or Family Health Insurance?
Deciding between individual or family health insurance may generally come down to whether you have a spouse or dependents who require coverage, too.