Medical Coverage and Tax Incentives

When an individual is considering working independently there are many issues to discuss.  The first item on the agenda is to discuss the issues with your family because they are ultimately involved in this decision too. Instead of having an employer to depend on for medical coverage, you must rely on your own devices. The health insurance coverage you had with your employer will expire soon and you need to find another source. If your spouse remains employed you could add yourself to the policy and that will relive the headache in the search for health coverage.

Another issue to consider before acquiring private medical insurance is where your base of operation is. Are you planning to rent an office in a public building, utilize your garage area, or turn one bedroom of your home into an office? These decisions in regard to acquiring affordable health insurance will also factor in. The ability to utilize one’s home is a definite tax saver when it comes time to file the annual taxes. There are items available to once a year deductions most individuals and homeowners never think about. For example:

1. An individual can deduct a portion of the homeowner insurance.
2. An individual can deduct a portion of those utilities such as electric, water, gas and telephone providing it qualifies.
3. An individual carrying a mortgage is also eligible to deduct a portion of the property and school taxes.

All of these items, if applicable, will be a tremendous savings when factoring in which type of low cost health insurance you are interested. These combined factors contribute to the amount of the insurance policy as a whole. The more available cash on hand, the less pressure you will be facing. The choice of which type of medical insurance coverage you decide is an important one.

Since you are still searching a group health plan is another consideration. This depends more on your current health rather than past medical history. If you or your spouse has a pre condition this may be the desirable plan. Group health plans in general do not make you tolerate a waiting period of three months to eighteen months. The average monthly cost for health insurance is more affordable, therefore, a plan worth investigating.