Is Health insurance necessary? It can be an added expense, and when you are young and healthy, it might not top your list of priorities. Why pay for eyeglasses coverage if you have 20/20 vision, right?
Is Health insurance necessary? It can be an added expense, and when you are young and healthy, it might not top your list of priorities. Why pay for eyeglasses coverage if you have 20/20 vision, right?The debate differs depending on which country you live in, but the question is fairly universal: Is health insurance really essential? Do I even have a choice?
One of the advantages of working for a large company or organization is the fact that medical or disability insurance may be included as part of your salary.
In some cases, it may be deducted from your paycheck, but group rates make it very affordable.
As a freelancer, you trade these benefits for flexible hours, great opportunities, and the joy of being your own boss.
Having your own business can be amazing, but it doesn’t come with the added perks of retirement plans, paid vacations, or medical insurance.
That means you need to take care of these things on your own. If you are just getting started, or if you are going through some lean times, you may be tempted to hold off on health insurance until it seems more affordable.
But, that really isn’t a good idea – no matter how young or healthy you are!
So, if the topic of medical coverage has reached the top of your “to do” list (or if you are still undecided) here are the answers to a few commonly asked questions that will stress the importance of health insurance and help you make the best choice for you and your family.
1. Do I Really Need It?
Yes. Medical treatments are expensive. Really expensive! Even if you
are healthy, an emergency can leave you buried under a mountain of debt.
If you break your leg playing soccer or develop a case of appendicitis, the hospital costs alone can be astronomical.
And, if you have a family, you really can’t afford not to have coverage. It will ensure that you get timely medical care and the treatments needed without worrying about how you are going to pay the bill.
Even if you live in a country that has government provided health insurance, there are still a lot of services that may not be included.
Supplemental insurance is often less expensive than paying for things like wisdom tooth extraction, chiropractic adjustments, or prescription eyeglasses out-of-pocket.
2. Is It Required?
Sometimes. It depends on where you live. In the United States, the new Patient Protection and Affordable Care Act makes health insurance a legal requirement.
Other countries have similar laws, and annual fees may be included as part of your taxes or rated based on income. Check the laws in your area.
3. Are There Penalties?
There could be. Under the Affordable Care Act (in the U.S.), if you don’t
have health insurance, you will likely be fined.
Some countries have tax penalties, while others will simply send you the bill (And, you probably don’t want to know what your trip to the ER cost!).
4. Where Do I Buy It?
Whether you are looking for comprehensive coverage or a supplemental
plan, a Google search should help you find insurance providers in your area.
5. What Plan Do I Buy?
It is very important that you choose the right coverage for you and your
family. Remember, as a freelancer, you don’t have paid sick days or stress leave.
So, your first step is to look at your needs and determine what must be included in your health care package.
- Do you make frequent visits to specialists?
- Do you use a lot of prescription medications?
- Do your children have regular dental check-ups?
- Do several people in your home need prescription eyeglasses?
- Do you want chiropractic or massage therapy included?
- Do you want ambulance costs included?
- Is medical travel insurance important?
- Do you prefer a lower monthly premium or do you want lower out-of-pocket costs when you need medical assistance?
6. Is It Subsidized?
In some cases. Depending on where you live, subsidies or financial assistance may be available for those who fall within a certain income bracket or age group, or those who have specific disabilities. Do your research to find out what is available in your country.
Some information can be found at:
http://obamacarefacts.com/obamacare-subsidies/ and
http://en.wikipedia.org/wiki/Two-tier_health_care
7. What About Pre-Existing Conditions?
If you live in the U.S., the Affordable Care Act states that it is illegal for any insurance company to charge a higher premium or deny a claim for preexisting health conditions.
This is good news for Americans, but unfortunately, it is not the case
everywhere. Various health systems have different rules, and policies may even differ between insurance companies.
Check out what is standard for your country/state/province, but also read your policy carefully and make sure you are clear about the rules if you have a pre-existing condition.
Some information can be found here:
http://en.wikipedia.org/wiki/Health_system#international_comparisons
8. What Will It Cost?
The price of plans vary depending on where you live and what you want
included. But keep in mind, the cheapest is not always the best! As a freelancer, this coverage can be a great way to protect your income.
Having to put hundreds (or even thousands) of dollars out for unexpected medical expenses can really affect your bottom line.
But, on the other hand, if your plan doesn’t provide what you need, you may be throwing your money away.
Paying a monthly premium does not guarantee that everything will be paid for. If it’s not in your plan, it’s going to come out of your pocket.
So, take the time to do your research, find the answers you need (get some help if you have to – some countries even have agents who
specialize in finding you the best health insurance), and buy the best coverage for you and your family.
Read my “How To Be Self Employed” e-book
Disclaimer
The advice provided on this website is general information only. It has been prepared without taking into account your objectives, financial situation or needs. It is general advice for freelancers about the questions they should ask a professional advisor. Before acting on this education material for freelancers you should consider the appropriateness of the material, having regard to your own objectives, and seek detailed personal advice from an appropriate professional.
