The essence of Grad Money Matters is that no matter how much money you have, it never seems to be enough. When you live on $1000 per month, you just know deep down that you would be living life on easy street if only, just only, you could break $2k. Then, when you finally reach the goal, you find that you’ve added little “extras” along the way that make you want to earn more to cover the cost.
The purpose of this blog is to teach you that you don’t need all that stuff – life would be far more streamlined if you made more money but kept your overhead low. Some things you simply cannot scrimp on, however – and your home and health should be highest on that list.
Health insurance is an essential protection to have in life, and if you work for a company, chances are you don’t have to worry much since you’re covered under a company plan. For those who are self-employed, the game is much different. There are lots of scams and overblown plans out there when it comes to shopping for private health insurance, and the trick is finding a plan that fits your needs without blowing your budget in the process.
How to Choose a Private Health Insurance Plan
Even if you think that you can’t afford health insurance, chances are you can. Every US state has a variety of private health insurance options, and if you choose a plan with only a minimum amount of coverage, it’s far better than having no coverage at all. The trick is to shop around for the best deal, and treat the process as you would any other big purchase in your life – compare your choices before you decide to commit.
If you’re in a situation where you have access to a short-term plan, then signing up for one may be a viable option to bridge your household’s needs until you can get on your feet financially with your new self-employment. When you’re looking for a more permanent solution, be sure to stick to preferred provider organization (PPO) plans, health maintenance organization (HMO) packages, or other reputable plans. Click here to find out what kinds of options may be out there for you.
Once you’ve settled upon the right plan for your household, it’s time to turn your attention to the amount of your deductible. You should always keep your budget in mind when you’re making this decision and factor the highest amount you can contribute to insurance costs during each month since you’ll be paying your own salary as a self-employed person.
This is the most crucial decision you’ll make about your private health insurance, and you need to ensure that you choose an amount that you would be comfortable paying out-of-pocket for the year if you absolutely had to. If you go with a higher deductible, your monthly premium will be lower, but you’ll have to cough up more money if you end up needing to visit the doctor or hospital at any point during the year.