What Should Be Your Insurance Strategies And Plans If You Are Self Employed?

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Insurance Strategies And Plans

Gaurav Bannerjee, is a young, smart and talented guy!

He left the comfort of his big fat job as a copywriter with a reputed advertising firm to start working as a freelance writer, which could give him ample creative liberties! Well, quite happens with creative people, right?

However a health emergency in the family immediately made him realize that the security cover of insurance over his head, which was provided by his company, has been taken away and now he has to now fetch for himself!

Apart from planning his strategies for getting business, he has to also think about the best way to go about getting health insurance and other covers in place so that he and his family don’t suffer in times of unexpected calamities.

Let’s see what is the best strategy for him and for many others like him.

  • Individual/Group policy: When in a job, his employer provided an insurance cover for him as well as his family. Now that he is an individual and self-employed with no staff, he will have to go for an individual policy, which most of the times is expensive compared to a group policy. In order to work around it, if he needs any family members to help him out in his work, he can hire them as employees and give them legitimate salaries and can include them in insurance cover. If after a while he does hire outside staff, he can cover them with insurance policies and tie the premium towards their policy with the kind of lifestyle they have. This will help for them to live a healthy lifestyle and be more responsible as well.
  • Tax Deductions: There are many companies offering insurance policies, but now as a self-employed professional or a businessman, he will have to make sure that the policy he chooses gives him maximum tax benefits. For that, he needs to research well and go into the fine print of various policies on offer.
  • Based on Job Profile: While deciding on buying a policy, a very important factor to be considered is what kind of a business or work he is getting into. In Gaurav’s case, he is a writer, which means spending a considerable amount of time sitting in front of a computer. This means that the policy he chooses should cover, apart from other major ailments, treatment costs for getting physiotherapy. This is just an example, but applies to all who are working in environments, which can prove detrimental to their health in the long run.
  • Coverage While Travelling: For those who have to travel extensively, both within the country and outside should study whether the insurance policy covers them when they are not at home. Overseas coverage along with covering the costs involved in getting treatment outside the home centre should be an important aspect while selecting the best insurance plan.
  • Personal Accident Plan: Since Gaurav is now the sole earning member and any absence from work owing to an accident can erase all his savings, not to mention the added treatment costs, he needs to be assured of getting a total coverage in case of accident at work or outside. There are companies which offer different policies to take care of loss of limbs, eyes etc. for self-employed people. Just find out the right one for you!
  • Doctor/Hospital of Your Choice: As such every insurance provider in the country has tied up with a long list of doctors, hospitals and nursing homes to help you with ease of getting the right treatment at the right time. However, it would be prudent to check if your family doctor or the hospital near your house is part of their associates or not. In times of emergency, we normally tend to rush to our family doctors or nursing homes we have dealt with in the past. It’s always better to get an insurance cover which has a tie-up with your known medical practitioner.
  • Rewards: Well, if you are living a healthy life, that in itself is a reward, but a small trend is beginning where your insurance provider rewards you for living a healthy life and you can use your reward points to redeem for various benefits! It is not yet a common practice, but no harm in finding out if you can avail of such benefits.
  • Your Spouse’s Coverage: this is like resorting to the last resort wherein you rely on your working spouse’s insurance coverage which has the complete family covered under it. However, make sure it is a stop gap arrangement and not a permanent solution because such policies don’t cover all the major diseases as well as the insurance cover may not be enough to pay for all your medical needs.

If you are self-employed too, keep these factors in mind while choosing your insurance plans and once you buy one, put all your energies and focus in making your start-up a roaring success!

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