|
|
|
Common Mistakes To Avoid When Purchasing Term Life Insurance
When purchasing term life insurance, there are a number of factors to consider. Consumers should make certain they understand the concept of term life insurance and make purchases accordingly. Here are a few of the most common mistake people make...
Insurance For The Self-Employed
The biggest concern I hear from people who are thinking about starting, or already have, their own business is the lack of medical insurance. What most people don't know is that there are many options available that will allow you to have both...
Insurance providers weather the storm while the claims of consumers flounder
We have just had the first year’s anniversary of the flash flooding which occurred at Boscastle in Cornwall. The floods saw some of the worst damage wrought by sudden rainfall in the UK for many years. The flood was caused by the remains of a...
Online Insurance: The End of the High Street Broker?
Once the insurance salesman visited you, then you visited his office. Now you pick up your phone or click your mouse. Does the Internet herald the end of the high street insurance broker in Britain?
When I was a lad, some 25 years ago, the Insurance...
What is Home Insurance?
Home Insurance is designed to provide you with financial protection against any damage and possible risks that your property and possessions within it may face against unforeseen events and circumstances. Home insurance is commonly taken to...
|
|
| |
|
|
|
|
Health Insurance for the Self-Employed
Having health insurance and being able to afford it is a great concern for many who leave a corporate job to run their own business.
The national crisis in health coverage is hitting the small business owners especially hard. About 24 million small-business employees and their families are uninsured, according to a study by the Kaiser Family Foundation.
After you leave your employer you may elect to continue to receive coverage in the employer's group plan at your expense for up to 18 months. The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a federal law that requires employers to allow departing workers to buy health insurance through the employer's group plan.
However, the cost of the monthly premiums for COBRA can come as quite a surprise if you're accustomed to you employer picking up most of your health insurance tab.
Luckily starting in 2003, if you work as a consultant, freelance worker, and
other self-employed individual you will be allowed to deduct all of your health insurance premiums. This is an increase form the 70% that was deductible in 2002. You can take the self-employed health insurance deduction even if you do not itemize your tax return.
But, even with health insurance the medical expenses that come out of your pocket can overwhelm you. If you have to dip into your retirement savings for certain medical expenses, the best way to do so is to transfer your IRA or previous 401(k) account to a Self-Employed 401(K) plan that you set up. You can then take a loan from that plan. Loans from a Self-Employed 401(k) plan are tax-free and penalty free as long as they are paid back.
About the Author
By Daniel Lamaute of www.InvestSafe.com Daniel is a retirement plans specialist and owner of Lamaute Capital, (InvestSafe.com) an investment brokerage firm that works with individuals and small businesses.
|
|
|
|
|
|