How To Be Self-Employed & Still Have Benefits

Being self-employed can be an incredibly fulfilling experience. In fact, owning a business is one of the best ways to achieve both work-life balance and generational wealth. These and other reasons can make it incredibly rewarding to be your own boss. At the same time, there are a few things that can make those exploring self-employment a bit nervous.

At the top of this list is the need to provide your own health, life, and other insurance coverage. You’ll also want to ensure that money is set aside for your retirement. The good news is that as a business owners have the freedom to choose the type of insurance and coverage that they want – not just what an employer offers. Read on to learn more about the advantages of securing the right insurance for those who want to launch a business, as well as what insurance you should consider as a business owner.


Benefits of Insurance for Entrepreneurs

If you’re like most people, you would expect to get access to better health insurance under a large employer. But this is not necessarily the case! In fact, there are some key benefits that come with getting individual or self-employment insurance.


Insurance for the Self-Employed Sticks with You

You already know that depending on the insurance type and the employer, many insurance policies provided to employees are part of a group policy. This means that when you leave the insurance you had through your employer ends with the job.

With individual insurance policies, if you pay your premiums, you will not have this problem. Self-employment insurance is yours no matter what happens to your employment status, which can provide real peace of mind as long as you budget for the cost.


Freedom To Choose Your Insurance Provider

Another great benefit of insurance for the self-employed is that you have the freedom to shop around and find the insurance company that is a good fit for you and your budget.

For example, if you do some research and find that most medical providers in your area accept a specific insurance company’s plan, you may want to consider obtaining a health insurance policy with that insurance company, so you won’t have to worry about out-of-network costs. In this way, choosing your own insurance provider can offer you a range of choices that employees typically don’t have.


Tax Benefits for Small Businesses Who Provide Health Insurance

It’s also important to remember that as you grow your business, you may be able to take advantage of getting the necessary insurance policies in addition to providing group health insurance to your employees. For example, participating in the Small Business Health Options Program (SHOP) may enable you to claim a significant tax credit for your business. Plus, providing a group health insurance policy makes your business more attractive to potential employees. This can help you grow your business and attract the quality employees you’ll need to achieve your goals.


3 Types of Insurance for the Self-Employed

Now that you know more about the benefits of getting insurance as a self-employed person, it’s important to understand what types of insurance are vital for protecting you, your family, and your livelihood. Here are the types of insurance you should consider investing in as a business owner.


Self-Employed Health Insurance

Health insurance is a key element of protecting yourself, your loved ones, and your employees in the event of an illness or accident. In general, you can opt for an individual health insurance plan or group health insurance for your business.


Individual Health Insurance

Individual health insurance is a good option for self-employed people just starting out in business. But it is important to do your research; individual health insurance plans can be costly, and you should look at all your options to make sure that your chosen plan fits into your budget and will provide you with adequate coverage. 


Group Health Insurance as a Business Owner

The other option for health insurance is a group health plan. This would be a situation where you provide health insurance to your employees (and yourself) under a group policy. Depending on how many employees you have, this can be a much more budget-friendly option.


Disability Insurance

Second in importance to health insurance, disability insurance helps protect your family’s finances should you become unable to work because of injury or illness. This is especially true for self-employed people. Even a short-term disability of just three months could devastate your finances. Depending on your policy, you may receive benefits until you can return to work (short-term disability) and/or if you are unable to return (long-term disability). Be sure to thoroughly research your coverage options and consider what makes sense as you start your business

Disability insurance can also be purchased as a group policy, but a tax credit may not be offered for businesses that provide group disability insurance coverage. 


Life Insurance

Life insurance can be relatively inexpensive, but can offer you, your employees, and your loved ones a lot of peace of mind.

Like health insurance, your situation might influence your decision to get life insurance. For example, if you’re single with no children, or if you’re covered under a spouse’s policy, you may feel that you don’t need life insurance.

However, things may be different if you have children or family members who rely on you. Life insurance can also help ensure the continuity of your business, ensuring that all your hard work lives on as a legacy for your heirs. This is something to consider if you are thinking about buying a franchise or starting out on your own and wish to protect your family.


Self-Employment Through Franchising: Be Self-Employed with Help from Neighborly

Being your own boss comes with both responsibilities and risks. But what if there was a way to mitigate some of the risks while getting the training and support you need to become a successful business owner? 

Franchise ownership may just be the answer! Franchise ownership is the popular route because it’s a rewarding, easier way to start and own a business. When you choose to franchise with a quality company like Neighborly®, you know that you will have help and support through every step of your business ownership journey.

Neighborly also provides franchise owners access to ProTradeNet®, with discounts and rebates from 250+ vendors including insurance providers. As a franchise owner, you can take advantage of this resource when finding insurance for you and your staff.

Ready to learn more? Download our free eBook, Recession Planning Your Future, or visit us online today!


This is not to be construed as insurance advice as provided by a licensed broker. 


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