Kentucky has 351,260 small business owners. If you're one of them, you may be on your own with insurance. When you need self-employed insurance, you'll want to know your options.
An independent insurance agent can help find all the policies your business needs. They work with several carriers, so you get coverage at an affordable price. Connect with a local expert for quotes.
If you're self-employed in Kentucky, you have a lot of responsibility. The dream of venturing out on your own is appealing, and it can be confusing. The right self-employed insurance policies are necessary to avoid financial distress. Take a look at some options that you may want to consider.
These are just a few basic policies your business may need to look at for adequate protection. To tailor your coverage to your needs, you'll want to review your assets and operation as a whole. Then obtaining multiple quotes for best pricing will help cut costs.
Health Insurance Options for Being Self-Employed
When you're self employed in Kentucky, health insurance can be tricky. There are a few options that you may want to consider when looking for the right policy. Since you won't have a boss to offer coverage, these options will suffice.
- Private health insurance: This can be obtained through an independent agent and go through some of the household named carriers. At times, this route can be pricey depending on who's included in your plan.
- Medical sharing plan: This is not technically insurance but works the same way. You will pay a monthly share amount depending on what program you choose. This share will get pooled with the other member's share amounts. When you have a medical loss, you can file a claim, and the plan will reimburse you from the pool.
- The marketplace: This is insurance through the government marketplace. It can be applied online at your own risk or through a licensed agent. You will report your annual earnings and then choose from an assigned market at a discount. The less household income you make, the lower your premiums will be.
Best Health Insurance for Being Self-Employed
Now that you know what options you have as a self-employed entity, what's best? That all depends on your situation and what you can afford. Health insurance for the self-employed individual isn't going to be pretty. Let's look at some options of each and how they could apply to you specifically.
Private health insurance option
- Most expensive
- Works well with most healthcare offices
- May offer the most coverage
- Uses standard health insurance markets
Medical sharing plan option
- Less expensive
- Has restrictions since it's not insurance
- Has to be reimbursed when a loss occurs
- Most healthcare facilities have not heard of
The marketplace option
- Least expensive
- You have to prove your income each year
- Works best for low-income households
- It works well if you have a lot of tax write-offs
- Uses standard health insurance markets
- Not all healthcare facilities accept this plan
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Self-Employed Health Insurance Cost
The cost of Kentucky health insurance is on the rise. Unfortunately, prices have soared in the past decade, making it harder for self-employed individuals to obtain proper coverage. While your expenses can't be determined without a quote, you can at least understand how they are figured. Take a look at what health insurance carriers use to set your premiums.
- Health history
- Your age
- Your weight
- Any current health concerns
- Who's included on your policy
- How often you workout
Disability Insurance for Being Self-Employed
When you're self-employed in Kentucky, disability is of top concern. If you become disabled and cannot perform your tasks, you could be at severe financial risk. When you are the one running the operation, you have to work to make an income. Disability insurance will protect your livelihood when you have no one to lean on. Check out what disability insurance has to offer.
- Pays for your lost income when a disability occurs
- Short-term disability will pay 60% to 70% of your income
- Short-term disability lasts up to a year in some cases
- Long-term disability will pay 40% to 60% of your income
- Long-term disability lasts the length of the disability or until retirement
Do Self-Employed Workers Need Workers' Compensation Insurance?
Most self-employed workers will fall back on their health insurance if they become injured. However, there may be a reason to obtain workers' compensation insurance. Usually, if you are being hired as a contractor for a company, they will require you to provide proof of insurance. Among the insurance policy requirements is workers' compensation coverage.
- Workers' compensation insurance: This pays for the lost wages and medical expenses of an employee that becomes injured or ill while on the job site.
While you may not be an employee, a company can ask that you obtain this coverage, so they aren't at risk. This protects their policies from being accessed if you get injured or ill while doing a job for them. Speak with an adviser on your options.
How a Kentucky Independent Agent Can Help
If you're self-employed, your insurance is essential to keep you protected. When you're operating solo, you'll be responsible for coverage on your own. Instead of trying to figure it out by yourself, consider using a licensed professional.
An independent insurance agent has access to several markets. Since they do the shopping on your behalf, you can save time and premium dollars. Connect with a local expert on TrustedChoice.com in minutes.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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