Being a freelancer is an increasingly common way to make a living. From writers and artists to engineers and programmers, more people are embracing the freedom of independent work that comes with being their boss.
While there are many benefits to freelancing, one constant worry among self-employed workers is health insurance.
If you’re not working for a large company especially if you’re just starting in your career you may feel like you can’t afford to pay for health coverage on top of all your other expenses. So it’s tempting to go without health insurance altogether.
But we’ve got news for you: You can’t afford NOT to have coverage! Health care costs are rising every year, and going without insurance will only put you at risk of losing everything if something goes wrong.
Here’s why having good health insurance is the most important decision you’ll make as a freelancer:
| Takeaways |
|---|
| 1. Health insurance provides financial protection against unexpected medical expenses. |
| 2. It ensures access to necessary healthcare services and preventive care. |
| 3. Having health insurance offers peace of mind, reducing stress and worry. |
| 4. Health insurance helps freelancers maintain their overall well-being and productivity. |
| 5. It provides coverage for prescription medications and helps manage healthcare costs. |
| 6. Health insurance protects freelancers from potential bankruptcy due to high medical bills. |
| 7. It allows freelancers to seek regular medical check-ups and early detection of health issues. |
| 8. Health insurance provides coverage for emergencies, accidents, and unexpected illnesses. |
| 9. Having insurance helps freelancers establish a safety net and protect their financial stability. |
| 10. It ensures access to specialized healthcare services and treatments when needed. |
| 11. Health insurance offers options for mental health support and counseling services. |
| 12. It allows freelancers to focus on their work without the constant worry of healthcare costs. |
| 13. Having insurance promotes a healthier lifestyle by encouraging regular healthcare visits. |
| 14. Health insurance offers protection against medical debt and collection agencies. |
| 15. It provides freelancers with a sense of security and protection for themselves and their families. |
1. Medical Bills Are Your Top Cause Of Financial Ruin
In the US, medical bills are the number one cause of bankruptcy and a leading cause of personal debt.
They’re also a major factor in personal financial distress. If you’re self-employed and don’t have health insurance, you may have trouble paying your medical bills if something goes wrong.
And if you can’t afford to pay them, those debts could get reported to credit agencies and make it hard for you to get loans or rent an apartment or even find work in some cases!
Building a strong financial foundation as a freelancer is crucial, and one aspect you shouldn’t overlook is getting life insurance. Explore the options available and secure your future today.
2. Having No Health Insurance Will Cost You
As the cost of health care rises, so does your bill. If you don’t have insurance, the cost of treatment will be even higher.
The cost of treating an illness or injury can quickly spiral out of control, especially if you’re not prepared to pay for it yourself.
Your premiums may be high at first but with no deductible and lower monthly payments (even if you don’t use much), health insurance can save you money over time by offering a safety net when unexpected medical expenses happen.
3. You’ll Face A Penalty For Going Without Health Insurance
If you’re going to go without health insurance, you’ll face a penalty.
The penalty is assessed against your income tax return and is calculated as 2.5 percent of the household income of $695 per adult (up to the national average premium for a bronze plan) and $347.50 per child under 18.
The penalty can be up to 2 times that amount if any member was uninsured for more than three months during the year, but it’s capped at the national average premium for a bronze plan:
For instance, if someone chose not to enroll in an exchange and instead paid full price out of pocket, they’d pay up to twice as much as if they went through HealthCare.gov that’s their choice and their responsibility;
However, even with this added cost (which could still be less than what they would have paid), it would still be cheaper than paying out of pocket without insurance coverage each month!
4. Health Insurance Is An Investment In Your Future
Health insurance isn’t a one-time expense; it’s a long-term investment that pays off over time. That’s why so many people who work for themselves choose to get their health insurance.
They know that it’ll be worth the monthly premiums because they’re investing in a better life for themselves and their families down the road.
If you’re considering transitioning to full-time freelance work, it’s important to weigh the pros and cons. Discover the reasons why going full-time freelance can be a game-changer for your career and lifestyle.
5. Freelancers Can Get More Affordable Coverage Through Obamacare
The Affordable Care Act (ACA) was designed to make health insurance more affordable for everyone, including freelancers. The ACA is also known as Obamacare, and it requires all Americans to have health coverage or pay a tax penalty.
Thanks to the ACA, freelancers can get more affordable coverage through public exchanges or even private plans with subsidies. Under the ACA’s plan design rules, most healthy individuals will have lower premiums than they would otherwise.
The bottom line? Health care is a right, not a privilege; it shouldn’t be reserved for only those who are wealthy enough to afford it or not sick enough to need it.
6. You Can Still Get Coverage If You Have Pre-Existing Conditions
Health insurance can be expensive, and if you’re a freelancer or small business owner without access to employer-sponsored health benefits, it can seem like an unnecessary expense.
But health insurance is important for everyone, even those who are healthy and don’t expect to get sick.
If you have a pre-existing condition that makes getting coverage difficult or impossible in the individual market or if you’re self-employed with no access to group coverage there are still options available for you.
The Affordable Care Act protects individuals with pre-existing conditions from being denied coverage outright by insurers and allows them to receive financial assistance when they purchase plans on their own through state exchanges.
7. You Won’t Have To Pay Income Tax On Your Premium And Deductibles
Health insurance premiums and deductibles are tax-deductible for self-employed individuals and individuals who aren’t self-employed.
If you have a high deductible health plan (HDHP), the amount you pay in out-of-pocket costs before your insurance kicks in is also deductible, which can save thousands of dollars.
If you’re self-employed, it’s important to note that health insurance premiums may be tax-deductible because they fall under an “above the line” deduction category meaning that there’s no limit on how much your employer can contribute toward these expenses.
This means that if you’re paying for an HDHP on your own, or if your business offers this type of coverage as part of its benefits package, it could be worth getting some advice from a professional tax preparer before filing next year’s return!
As a freelancer, it’s vital to prioritize your well-being, and that includes finding an affordable health insurance plan that suits your needs. Take control of your health and financial security.
8. Health Insurance Gives You Peace Of Mind
When you’re self-employed, health insurance is especially important. You’re not tethered to a company’s employee benefits package, so you have to put in the extra effort to find a plan that works for you.
But having healthcare coverage can help reduce stress and anxiety and that’s something we all need in our lives.
Health insurance gives freelancers peace of mind because it provides a safety net if something goes wrong with their health. They no longer have to worry about medical bills piling up while they’re trying to focus on their business or creative endeavors.
They don’t have anything holding them back from doing what they love: creating art, making music, designing software solutions, etc.
9. You Can See The Specialists You Need When You’re Insured
When you’re insured, you can see the specialists that need to be seen. They’re likely more likely to be able to diagnose your condition and help you figure out the right treatment if it’s serious.
Having medical professionals take care of your health means they’ll know what they’re doing and will do it well and that’s important because when there are big decisions about your health, they should be in the hands of someone who knows their stuff.
10. You’re Less Likely To Be Diagnosed With A Serious Illness If You Go Regular Checkups
Health insurance is a great way to stay on top of your health, but regular checkups are an even better way.
Many working professionals are indeed able to get by without insurance. However, if you’re a freelancer, you must go through at least one round of checkups every year.
The reason why regular check-ups can help prevent illness is that they give doctors a chance to keep an eye on their patients’ health and let them know when something needs attention.
When serious issues are caught early enough, they can be treated quickly before they become too serious or life-threatening. Often this will allow patients to continue living healthy lives even after being diagnosed with certain conditions such as diabetes or heart disease
11. You Get Preventive Services At No Cost To You When You’re Insured
Preventive services can be very important to your health, even if you don’t have a specific medical condition. Preventive care can help you detect and treat problems before they become serious illnesses or injuries.
You may even be able to get free or low-cost preventive care from your insurance company when you’re insured.
This could be something like a physical exam or an appointment with a nutritionist whatever it is, the point is that preventive services are good for everyone’s overall well-being!
When people are diagnosed with conditions like diabetes or heart disease later on in life, it’s often because they didn’t get preventative treatment earlier on.
If you’re uninsured and have time between jobs (or no job at all), staying healthy by getting regular checkups can save money in the long run by preventing more expensive treatment down the road.
Freelancing websites have revolutionized the way people work, but it’s essential to consider safety precautions. Learn how to navigate freelancing platforms safely in our article on are freelancing websites safe for a worry-free freelancing experience.
12. If It Comes Down To It, Your Health Is More Important Than Money Or Time Off Work
There are a lot of things in life that we take for granted. We don’t think about them until something happens and we’re reminded of how important they are to us.
For example, I’ve been running for many years now and have never once thought about how much I love going for a run or how it makes me feel when my legs start to tire after two miles.
But as soon as I get shin splints or plantar fasciitis (which both happened within the last year), then suddenly going for a run is the most painful thing in my life!
Similarly, you’ll probably never think about how important health insurance is until something goes wrong with your physical well-being.
Then all of a sudden it becomes really important–and usually at an inconvenient time like when you’re on vacation or just had surgery and couldn’t afford to have gotten this way without insurance coverage! Don’t let this happen to you!
13. Full-Time Work Doesn’t Always Equal Full-Time Benefits, But Freelancers Have Free Reign To Choose Their Coverage And Doctors To Suit Their Needs
As a freelancer, you are lucky enough to have the freedom to choose your benefits. You can choose from a wide variety of plans and doctors, making sure that your coverage is tailored exactly to your needs.
And if you don’t like what’s available in your area, why not look elsewhere? Freelancers are constantly traveling or working remotely there’s no reason why they shouldn’t be able to take advantage of this perk!
Of course, there is one catch: you’ll have to pay for all the extra perks yourself. If this is something that concerns you (and who wouldn’t worry about money?).
Then make sure that whatever policy or service provider you choose has affordable pricing options available so that paying for health care won’t break the bank.
14. A Benefit From A Former Employer May Jump Start Your Plan (And Save You Money)
If you’re a freelancer, it may help to know that you can use COBRA to temporarily continue your health insurance from an employer.
COBRA is the Consolidated Omnibus Budget Reconciliation Act of 1985, which allows employees and their dependents who lose their job to keep their group health coverage for up to 18 months.
You may also be able to use a health plan from a former employer that offers HMO or PPO plans (the latter being more expensive). To qualify for this option, you’ll need approval from the carrier before joining them; otherwise, they have no obligation to provide coverage.
If this sounds like something worth exploring further, contact your former employer’s benefits department as soon as possible after leaving before any lapse in coverage occurs would be best.
And ask them what options are available under COBRA or some other benefit plan they offer employees who are transitioning out of employment.
Freelance contractors are at the forefront of innovation and change in today’s world. Discover why they are the true trendsetters and the impact they have on various industries in our post on freelance contractors in today’s world.
15. Medical Care Shouldn’t Be An Afterthought For Freelancers, Who Should Take Responsibility For Their Own Health Care
The more money you make, the more likely you are to have health insurance. But even if you’re a freelancer, it’s not too late to get covered.
If you’re currently uninsured and don’t know where to start or what your options are, consider checking out HealthCare.gov to see what’s available in your area. You could even qualify for financial assistance based on your income level and household size.
Many individuals who don’t qualify for government programs will find that there are still affordable options available through Obamacare (the Affordable Care Act) marketplace plans that may be ideal for their needs including consumers with pre-existing conditions like diabetes or high blood pressure!
Conclusion
Let’s take a look at how you might be able to save money on health insurance as a freelancer.
Section: Freelancers can save money with health insurance by using either a high-deductible plan or an HSA, plus they can also apply for subsidies when they make less than 400% of the federal poverty level.
Section: Health insurance premiums are based on age, location, and income so it’s important to find out what your options are before deciding which plan works best for you.
Further Reading
Here are some additional resources for further reading on the topic:
Pros and Cons of Freelancing: Explore the advantages and disadvantages of freelancing to gain a better understanding of this career path.
Marketers: Stop Using Health Insurance as an Excuse Not to Freelance: Learn why health insurance shouldn’t be a barrier to pursuing freelance work and how marketers can overcome this challenge.
42% of Freelancers Don’t Have Health Insurance – Here’s How to Get Covered: Discover options and strategies for freelancers to obtain health insurance coverage, addressing a common concern in the freelance community.
FAQs
Here are some frequently asked questions about freelancing and health insurance:
Q: Is health insurance available for freelancers?
A: Yes, health insurance options are available for freelancers. It’s important to explore different avenues such as private plans, government marketplaces, or professional organizations.
Q: What are the main benefits of having health insurance as a freelancer?
A: Health insurance provides financial protection against medical expenses, access to healthcare services, preventive care, and peace of mind, ensuring freelancers can focus on their work without worrying about their health.
Q: How can freelancers find affordable health insurance plans?
A: Freelancers can research and compare different health insurance plans, consider joining professional associations or unions that offer group coverage, or explore options through government marketplaces or health insurance brokers.
Q: Are there any alternatives to traditional health insurance for freelancers?
A: Freelancers can consider alternatives such as health savings accounts (HSAs), healthcare sharing ministries, or short-term health insurance plans. However, it’s crucial to evaluate the coverage and suitability for individual needs.
Q: What should freelancers consider when selecting a health insurance plan?
A: Freelancers should consider factors such as coverage options, premiums, deductibles, networks, prescription drug coverage, and additional benefits to find a plan that aligns with their healthcare needs and budget.
Costantine Edward is a digital marketing expert, freelance writer, and entrepreneur who helps people attain financial freedom. I’ve been working in marketing since I was 18 years old and have managed to build a successful career doing what I love.