Being self-employed offers many advantages – you’re your own boss, you set your schedule, providing a better work-life balance, and you have full control over your career. However, one notable disadvantage is the absence of employer-provided benefits, including health insurance.
While navigating the world of self-employed health insurance can feel overwhelming, the right guidance can help you find a policy tailored to your needs. Here’s a comprehensive guide to help you understand and secure the best health cover for your situation.
What is self-employed health insurance?
Self-employed health insurance is an insurance policy for individuals who work for themselves, are freelancers, or sole traders. It’s designed to provide essential medical coverage for individuals who work for themselves and do not have access to employer-provided benefits. If you get ill or injured with an acute condition, self-employed health insurance will cover the costs of the treatment.
How does self-employed health insurance work?
The process is simple:
- Choose your plan – there is a wide range of policies with additional benefits and excess limits. Working with a broker can ensure you get unbiased advice to the whole market. Ensuring you get the cover within your budget and medical requirements.
- Choose to pay monthly or annual premiums – being self-employed, you will directly pay the insurance provider. These premiums are based on factors such as your age, health, and the level of cover you choose.
- Make a claim when needed – if you require treatment, you contact your insurer to approve the claim. You must do this before proceeding with treatment otherwise you risk unexpected costs.
- Treatment costs are covered – if your claim is approved, the insurer will proceed with payment, either directly to the treatment facility or as a reimbursement. This will exclude any excess you have opted to pay.
- Get the treatment – once payment has been made, you can proceed with your treatment.
What does self-employed health insurance cover?
Unlike employees who may receive health insurance through their employers, being self-employed means, you need to find and fully fund the policy yourself. The coverage can vary depending on the insurer and the policy, as well as any additional benefits you choose, but typically has the following:
- Specialist consultations
- Diagnostic tests
- Treatment and surgery
- Rehabilitation and therapy
- Cancer treatments
- Mental health support
- Outpatient, inpatient, day-patient treatment
- Dental and optical
What is not covered by a self-employed health insurance plan?
It is important to note that with health insurance plans there are often exclusions. These can include the following:
- Pre-existing conditions.
- Chronic illnesses like diabetes or asthma.
- Cosmetic treatments.
- Experimental treatments
- Routine pregnancy and childbirth – however, some complications may be covered.
- Emergency care (this remains under the NHS in the UK).
The cost of self-employed health insurance
As a self-employed individual, cost is often a significant factor when deciding to take out health insurance. Premiums depend on several factors, including your age, health history, and the type of policy you select.
One option to reduce costs is to opt for policies with higher excess payments. This means you will pay more out-of-pocket when you make a claim, but your monthly premiums will be lower. This can be a good option if you don’t anticipate claiming a lot.
The Cost of Self-Employed Health Insurance
If you are self-employed, cost is often a key consideration when choosing health insurance. Premiums are influenced by several factors, including your age, medical history, and the level of cover you choose.
Ways to Manage Costs:
- Increase Your Excess: Opting for a higher excess means you will pay an agreed-upon amount when making a claim, but your monthly premiums will be lower. This is ideal if you don’t anticipate frequent claims.
- Customise Your Policy: Some policies also let you choose your benefits such as limiting your hospital options to certain facilities or excluding extras like dental care, these can all help keep the premiums down.
- Select Essential Cover: Focus on what you truly need, such as core benefits for specialist consultations and treatment, rather than add-ons that might not be necessary.
By tailoring your policy to suit your needs and budget, self-employed health insurance can remain an affordable way to access quality private healthcare.
Can you claim health insurance as a business expense?
One of the benefits of being self-employed is the potential to offset certain expenses against your taxable income. Private health insurance premiums might be considered a business expense, particularly if you are operating as a sole trader or through a limited company.
However, it is a good idea to consult a professional accountant or financial advisor. They will help you determine the best way to handle your premiums and whether any tax savings apply.
How UK Health Insurance can help
We understand that finding the right health insurance policy can be overwhelming. That’s why UK Health Insurance is here to make the process simple and hassle-free. As a broker, we work with a range of trusted insurers to provide tailored advice and help you choose a policy that will best fit your needs and budget.
Here’s how we help:
- Understanding your needs – whether you’re a freelancer, contractor, or running a small business, we take the time to understand what is important to you
- Comparing options – we do the hard work of comparing policies from multiple providers, saving you time and ensuring you get great value for money.
- Expert guidance – our team of health insurance specialists can thoroughly explain policy details, helping you make informed decisions without confusion.
- Ongoing support – once you have chosen your policy, we are here to help with any questions or issues, from making claims to reviewing your cover as your needs change.
Contact us
Get in touch today at 01202 756 352 or email us at [email protected] to get a free, unbiased advice.