Some professionals avoid freelancing because they do not want to lose employer-sponsored benefits. Some freelancers dive into this labor sector not realizing they will become responsible for their taxes, expenses, and insurance responsibilities.
Studies show that the average income that freelancers earn is just over $68,000 annually. Therefore, enough entrepreneurs can support themselves on self-employed income. In addition, they can cover the costs that come with becoming a small business owner.
Realizing that you need to purchase insurance, pay taxes, and keep track of expenses is new territory. However, if you organize yourself, you can manage your business without a hitch.
Freelancers must gather information on topics that impact them, such as insurance.
We provide a brief overview of the freelancer’s guide to dental and health insurance.
What You Need to Know
The cost of dental and health insurance for freelancers is on the same level as employees. Self-employed dental insurance costs between $30 to $100 a month or the same as employees. The better the plan, the higher the premium.
The difference is that you’ll need to explore your options instead of having them handed to you by the human resources representative.
Keep in mind that you’re not entirely on your own when trying to find the best coverage for yourself. Since the number of individuals freelancing continues to increase, services that cater to the needs of freelancers continue popping up.
After completing some searches online, call a few providers and ask them questions. You can try to find plans comparable to those that you had as an employee and compare the costs. Another strategy is to sign up for standard plans and scale them as your needs change.
Physical and dental health are personal to the person – everyone is different. One individual might have a family, so they need a family plan. Others might need to cover prescriptions for chronic conditions.
If push comes to shove, speak with your primary care physician or pharmacist to gather more information about possible plans.
For example, they can tell what you need covered in each plan. Your health plan should cover:
- Emergency care
- Medical prescriptions
- Lab services
- Preventive care
- Outpatient services
Dental plans should cover:
- Dental cleanings
- X-rays
Dental insurance differs from health coverage. Some plans might cover cosmetic dentistry procedures, whereas health plans will not cover cosmetic surgery.
Consult with your dentist, who can provide you with additional guidance.
How to Obtain Dental and Health Insurance
Once you pick your plans, you need to purchase them. Some providers have enrollment periods. Therefore, you must wait for the new member period to sign up.
Another way to obtain coverage is to use insurance marketplaces. The federal government created the marketplace when the Affordable Care Act, aka Obamacare, went into effect.
It’s an online and offline exchange where individuals can explore their options. Plus, you can purchase coverage through the platform. The exchange is especially handy when insurance companies are not offering their enrollment periods to the public.
The Importance of Insurance for Your Well-Being
Purchasing dental and health insurance might sound overwhelming. After all, you’ll experience putting down the groundwork that the HR department normally does at companies.
Once you purchase your plans the first time, renewing them becomes more manageable. You’ll know what you need and how much. For example, if you have expensive dental work needs coming up, purchase more coverage beforehand.
Conversely, you can purchase less coverage if you notice that the previous plan had elements that you did not redeem.
However you approach the process, remember that it’s important to purchase coverage, especially for solopreneurs. No one will pick up the slack if you become sick and can’t work. Moreover, you want to avoid working with a splitting headache caused by a deep cavity.
Purchasing coverage is part of becoming a responsible entrepreneur. It’s a valuable experience that you’ll need if you plan to expand your business. At that point, you’ll need to purchase coverage for your staff.
Conclusion
Becoming a freelancer means becoming a small business owner, and small business owners have several responsibilities. Entrepreneurs wear many hats. They keep their companies afloat and oversee marketing, finances, and human resources responsibilities. Once you purchase your first self-employed dental and health insurance plan, you’ll gain the experience you need to renew it and buy for your team.