Self-Employed Insurance Types

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    Health Insurance

    • Self-employed individuals need to provide their own health insurance. Several options exist to provide health insurance coverage. Individuals recently departed from a full-time position may be eligible to continue receiving health coverage through COBRA. COBRA provides health coverage from the individual's previous employer for a maximum of 18 months. The individual pays the full premium instead of just the employee portion of the premium. These individuals also may choose to purchase a health insurance policy through a private insurance company. These individuals need to review the policies carefully to ensure that the policy provides adequate coverage in case of a medical emergency.

    Disability Insurance

    • Self-employed individuals receive no income when they are unable to work. If the individual experiences an accident or an injury and misses several months of work, the financial impact could be devastating. Disability insurance provides the individual with an income until she is able to return to work. Disability insurance generally pays between 50 percent and 60 percent of the individual's regular income.

    Dental Insurance

    • Dental treatments can be expensive. A root canal or orthodontic care can cost thousands of dollars and usually requires payment up front. Self-employed individuals who lack dental coverage find themselves suffering through tooth pain or incurring large debt in exchange for treatment. These entrepreneurs should consider dental insurance. Dental insurance comes at a variety of benefit levels and prices. The most inexpensive options include discount cards. The holder receives discounted services with the card. More expensive options include higher coverage levels and allow the individual to visit any dentist.

    Life Insurance

    • The self-employed individual should consider purchasing life insurance. If he dies, his family would lose its income immediately. Life insurance provides financial benefits to assist the family with funeral arrangements and income needs to prevent the family from experiencing financial hardship.

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