When most think of self employment we think of the ability to make our own decisions, freedom from the claws of the nine to five. Those brave enough to make the jump into the self employed pool will be very aware of the volume of work and the pressures faced. With complete responsibility for your income with no safety net to protect you, no sick pay, no paid holiday and no regular income stream should we be considering self employed health insurance.
Unfortunately this does mean if you are ill or getting treatment there may well be no to cover your outstanding workload and thus you income stalls. This is why many are turning to health insurance plans, cover to provide treatment when and where you need it, minimising your time off work thus minimising lost income.
ExampleTake a self employed plumber. Falling ill could well put a lot of pressure on you financially, with no work you don’t get paid, so the aim is to minimise this time off work. Self employed medical insurance enables self employed individuals like the plumber, get diagnosed quickly and treated promptly. By utilising the benefits of a medical plan you are able to bypass the NHS waiting lists, you can choose when and where you receive your treatment privately in order to get back to work as quickly as possible.
Standard health cover.
Many health providers will accept self employed individuals on one of their standard medical plans. Although these policies are geared towards employees rather than those in self employment. Due to significant demand a number of health insurance providers have designed policies specifically for the self employed.
Specific self employed health insurance.
If searching for a self employed health insurance plan has led you here you are in luck, there are plenty of products tailored for the self employed. When comparing any insurance product it is crucial to review a range of providers and products to find the most affordable health plan that best suits your needs. Insurers underwrite policies with different factors an one may well offer you lower rates than another as they see you as a lower risk case.
There are a number of benefits of a self employed product over a standard plan, it is geared specifically to soletraders and business owners. Some plans even offer a business assistance service which whilst you are in hospital would send messages to clients or suppliers on your behalf to notify them of your situation.
Small group scheme.Although some insurers offer all or some of their products where only one individual is insured, others for the benefit of a group scheme require a minimum number of 2 or 3 persons to be insured. Please be aware when considering group health insurance the requirement is for at least 2 or 3 persons to be insured who are employed by the business, your spouse and children or those of other employees do not counter towards this minimum requirement.
Important to remember.Like all health insurance products, self employed health insurance is designed to work in tandem with the NHS, not replace it. Admissions to Accident and Emergency, GP services and the treatment of chronic conditions still tend to be provided by the NHS.
Self employed health insurance, keeping the costs down.
Self employment is no walk in the park and for most it means watching the pennies. Keeping a close eye on your finances is so important so you’ll be pleased to know like many of the other health plans on the market there are a number of options to help reduce your monthly costs from reduced outpatient benefits to adding an excess.(see Health Insurance Costs)
Business expense
If you buy health cover as an individual it is out of net income. If you are in business the self employed health insurance premium may well be accepted as a legitimate business expense. If you buy a business policy, paid for by the business, it is usually acceptable as a genuine allowable business expense. Employees who receive the business health cover may be liable to a p11d tax on any premiums paid on their behalf; there is no tax on any benefits claimed.
Other self employed insurance to consider
Self employed health insurance has the purpose of minimising your time off work due to illness however it does not cover any loss of income. There are a number of other protection products the self employed should consider from protecting your monthly income due to illness or injury to providing a cash lump sum should you be diagnosed with a critical illness. Other policies to consider include:
| Term Assurance | In the event of death will pay your loved ones a cash lump sum. |
| Income Protection Insurance | If you are unable to work due to illness or injury the policy will pay a monthly income often up to 65% of your monhtly earnings |
| Critical Illness Policy | If you were diagnosed with a critical illness such as cancer or a heart attack the plan will pay out a cash lump sum. |
Next steps.
If you are planning on buying an affordable health insurance policy for self employment and would like some more information, some guidance or health insurance quotes we can help you find the policy that fits your needs at the most competitive price.
There a many useful resources for the self employed on Business Link and Start-ups.co.uk.
