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Should the self employed consider health insurance

With entrepreneurs and the self employed having so much to contend with when running their own enterprise financial protection is rarely on the agenda. Should protection be given higher priority, especially in the case of health insurance given it's abillity to minimise time off work and thus loss of income.

Author: James P White
Date: Feb 1, 2010 - 12:39:20 PM

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There is no doubt when you are most people they would love to be in complete control of their working life. Although in theory it is a nice thought, self employment is an uphill struggle with a great deal of work and pressure. The brave ones who make this leap will recognise this, they will also be very aware that there is no-one to full back on, no sick pay, no-one to cover your outstanding work load which means if you need time off work due to illness or injury getting back on your feet as soon as possible is crucial.

Fortunately in the health insurance market there are many products which have been specifically designed for the needs of the self employed. From payment protection insurance to cover your monthly financial obligations should you be rendered unable to work due to illness or injury to medical cover so you can get diagnosed and treated quickly should you require it rendering you unable to work for the shortest possible time thus minimising your loss of income.

Take a tradesmen such as a builder. If the builder has an acute condition and needs treatment, for instance he is unable to work due to a hip problem, work stops, houses do not get built and money stops coming in. This can cause a lot of strain as the financial obligations the builder has to meet do not stop. If he decides to use the national health service there could well be a considerable waiting list before he receives any treatment, all the time he is sat around waiting he could of been earning an income. With a medical plan the builder can get diagnosed as soon as the problem occurs, he can then receive treatment when and where he wants it, at a time convenient to him thus cutting down the amount of time off work and minimising the loss of income.

 When looking around for affordable health insurance it is important to consider the entire market, different providers underwrite products in different ways which may mean a certain provider sees you as lower risk and thus quotes lower rates based on your scenario. With the vast number of resources on the internet it is a great place to start, although do beware as some policies may appear cost effective but have a set level of cover providing little flexibility allowing little if any tailoring of the policy to fit your needs.

Like any medical plan, those designed for the self employed have a range of options to either limit or increase the cover. From outpatient treatment and additional benefit, such as cover for initial tests, consulting fees, hospital and accommodation charges to alternative medicines and overseas cover.

It is especially important with self employed policies to see the additional extras that are provided specifically designed for a business owner, some even provide a secretarial service during you period of treatment notifying your clients and suppliers of your need for treatment and absence from trade.

Most insurance companies will allow a certain tailoring of policies and add in extras to compliment your medical plan, but do recognise, insurance is like any other product, and the more extras you add the more expensive the premiums will be.

Without understanding your circumstance it is all but impossible to provide health cover rates due to the nature of how the product is priced and underwritten, especially for self employed.

Premiums will vary depending on your specific scenario; certain factors will affect the pricing of your premiums such as age, location and occupation, if you have any existing conditions. It is best to get a quote online to get an estimate of your premiums. As mentioned before it is always best to look around for the best rates, using an insurance broker can ensure you get the product you require at the most competitive rates.

With entrepreneurs and the self-employed having so much to do n a day to day business just to keep their enterprise running, protection is rarely at the top of the list however it is so important given the lack of a safety net.

Article produced James P White of Drewberry Personal Health Insurance Brokers, specialist providers of information, advice and broking services in the self employed health insurance market.

View all articles by James P White

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