Health Insurance For The Self-employed -- 5 Tips To Consider

First of all, it is not only possible to buy health insurance when you're self-employed, it's absolutely critical -- afterall, your health is one of your most important business assets.

Here are a couple of things to keep in mind as you shop for your best health insurance plan. And remember, when it comes to health insurance, there is no one-size-fits-all policy. You will need to consider your individual circumstances as you compare options.

1. If you and your dependants are relatively healthy, consider a high-deductible policy that covers only catastrophic events, such as surgeries and major injuries. The premiums are much lower than traditional health insurance policies, but this type of policy does mean that you will be responsible for more out-of-pocket exepnses. You will have to take out your checkbook each time you visit the doctor for a check-up or receive minor medical care. You will also have to pay your own prescription drug expenses.

2. If you want more coverage than the catastrophic policy offers, consider a comprehensive policy and then choose the highest possible deductible that you can afford, even if that deductible would be a financial stretch. The dollars you save on the premiums will likely exceed the deductible in the long run.

3. If you choose to go with a comprehensive policy, make sure it does not include coverage you do not expect to need like: pregnancy, mental health, chiropractic or unnecessary prescription drug coverage. On the other hand, if any of those coverages are important to you, make sure you ask your insurer to include them in your policy.

4. Consider a supplemental insurance policy to help cover your deductibles and out-of-pocket medical expenses that aren't covered by your primary insurance policy. This type of policy can even pay a cash benefit is you are unable to work because of illness or injury, an important feature for the self-employed. While the AFLAC duck has become synonymous with supplemental health insurance, there are plenty of other insurance companies who can provide similar benefits. Check with yours to ask if supplemental coverage is an option.

5. Take advantage of the HSA (Health Savings Account) that allows you to put pre-tax dollars into a bank account and use the money later to pay for your medical care. An HSA can either be a stand-alone insurance plan, or you can combine it with a catastrophic policy and use your HSA funds to pay for the medical care not covered by your insurer.

Remember, you do not buy an HSA from an insurer, you set one up yourself with the help of your accountant. If that sounds a little overwhelming, don't worry, the process is as simple as filing one simple form.

By deciding up-front what type of insurance is best for your situation, you'll feel more confident as you shop for the best policy. And remember, being self-employed does not have to mean being uninsured!