Chapter 2: Understanding Small Business Insurance for Independent Consultants
Part 2: Basic Insurance Policies for Sole Proprietors & Independent Contractors
One of the potential drawbacks of being a sole proprietor or independent contractor is that you don't reap some of the benefits of being an employee, such as access to an employer-based healthcare program.
Instead, you must purchase health insurance yourself. With the onset of the Affordable Care Act , health insurance is no longer an option for the self-employed — it's mandatory. The good news? You can no longer be rejected or charged more for pre-existing conditions.
The new health insurance requirements can be met by purchasing a policy from the Families & Individuals Marketplace , which offers a variety of plans with coverage options ranging from bronze to silver to gold to platinum.
As you may have guessed, the platinum plans come with the highest premiums and lowest out-of-pocket spending, while the bronze plans come with lower premiums and higher deductibles. According to HealthCare.gov , self-employed people may even qualify for lower premiums or tax credits.
Next: Part 3: Essential Insurance Policies for Marketing and Management Consultants