What are my options regarding disability and health insurance if I am an independent contractor?
As a person who happens to be self-employed, disability and health insurance are necessary to you as much as they are to anyone else. Most people get these types of insurance through their employers, but in your case this isn’t an option.
Health insurance:
Your options for health insurance might be limited to:
- Purchasing health insurance coverage directly from a provider
- Participating in group coverage, which will be purchased through a professional association/community
Being your own boss also means bigger responsibilities. Even though an employer usually offers life insurance to an employee, that doesn’t mean that these people agree to participate. Some people prefer to be independent.
Shopping around for health and disability insurance is an excellent idea. Some trade and professional organizations are willing to offer group insurance coverage. Some civic groups and churches do the same thing.
Keep in mind that individual insurance will be more expensive than group insurance. If you do purchase individual insurance, you will have a lot of advantages. Not depending on someone else and having your own policy is very convenient.
Disability Insurance:
Disability insurance is offered through the same sources as health insurance:
- Purchasing health insurance coverage directly from a provider
- Participating in group coverage, which will be purchased through a professional association/community
You are probably going to have to confront certain standards including income, age, occupation, lifestyle and health before you will be issued an individual disability policy.
You are either going to purchase individual or group coverage. Even though you will be paying more for your individual disability insurance, you will get more for your money, such as simply the fact of independency and other advantages.