Home Business Health Insurance
May 13, 2008 by admin
Filed under Home Business Ideas
Home Business Owners and the Insurance Dilemma
If you are like most small business owners, finding and securing good health insurance coverage can be difficult. Even if you do find a program that fits your needs, the monthly expense may be nearly more than your budget will allow. While you may feel healthy enough and choose to ignore purchasing a policy temporarily, you know that even a minor illness or injury could quickly cause financial turmoil.
Individual health insurance is often costly, but the total financial impact of a serious illness or injury can be devastating. Even if your budget is strained somewhat by dollars spent on insurance, consider it a necessary cost of doing business. If you are young and in reasonably good health, consider a higher deductible plan to help reduce the monthly premiums. There are many so-called ‘major medical’ plans available that can cap the total amount out of pocket, should you have a major medical event. Though this type of policy may force you to cover the first $3K-$5K, this amount should not be enough to cause financial ruin. Without this type of insurance, a major illness or surgery could cost upwards of $100,000–and the result for most people would be bankruptcy.
As the business grows and money becomes more available, you can reduce the deductible during the renewal period and still maintain adequate coverage. When a spouse has insurance coverage as a result of their employment, this can be a great way to have coverage during the early years of your business. Remember to keep the spouse’s policy intact, even if their job goes away, by utilizing COBRA benefits through the following year. It will be difficult, if not impossible, to obtain coverage for you and your family if you do not have current coverage at all. Keep in mind that most new plans will have a one-year waiting period on pre-existing conditions, but some may waive this requirement as long as you have not had a lapse of coverage for more than 30-60 days.
The local or regional chambers of commerce in many communities have partnered with insurance providers to offer health plans for the small business owner and their families. Your state may also have health insurance programs open to individual business owners. If your business has at least one employee, some insurance companies have plans available for you and the one employee.
In addition to good health insurance coverage, you should also get quotes for liability insurance. This is to protect you in the event that someone gets injured while on your property. Unfortunately, even close friends may opt for legal action to recover costs for medical bills. One such event could put your business out of commission. Another type of coverage to consider is a business interruption policy. A fire, flood or other catastrophe could cause your business to shut down for days, weeks or even months. No business means no income. Having this type of insurance could mean life or death for your company.
What about prescription drugs? There are numerous prescription discount plans to cover small business owners who have no other health insurance coverage. While these plans seldom cover the total cost of a prescription, the discounts can be substantial, especially for generic drugs.
Although small business owners do not have access to the lion’s share of affordable policies, there are some good options available. If you are having trouble locating an affordable health insurance plan, ask other small business owners for referrals. It’s amazing how everyone seems to have a brother, sister-in-law or good friend that either sells insurance or knows someone who does. If that doesn’t work, contact your state’s department of insurance. Be persistent and take care of this issue. Your health, and the health of your business, depends on it.
About the Author
Cathy Yeatts is an online entrepreneur and direct sales marketer. She is passionate about supplying new entrepreneurs with systems and products that are effective in building personal wealth. Learn how to successfully increase your income: www.internetmarketingincome.com
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