Self Employed Status for Health Insurance
- Thread starter janetj123
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- health insurance
anyone can purchase an individual policy... what does self employ status have to do with it?
- Thread starter
- #3
lemme get this str8... an individual policy is half price on the open market is your are "self employed"... 20 years in the biz.... never heard of that b4
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- #5
- 15,319
You must be new to insurance. When I go out to dinner all I tell the waiter is that I'm self-employed and my check is cut in half.
This is a neat trick to know and it works for everything. I told my mortgage company that I was self-employed and POOF, half of what I owe disappeared.
This must be hard for you to understand, living in South Oklahoma.
Rick
- 15,041
New York is a different world when it comes to insurance.
I highly recommend you find a local, independent agent.
I highly recommend you find a local, independent agent.
- 3,384
Some states allow SE individuals to purchase under a technical "group" pricing arrangement instead of straight up individual and down to 1 life "groups". In certain states, the rates for SE individuals who qualify under that arrangement are substantially lower than the standard IFP rates, esp in certain GI states.
OP, you should specify your state as NYS in the original post as health insurance has state-specific rules that only agents (generally) selling in that state are qualified to answer. We do have a couple of NYS agents on here somewhere.
The answer depends on the type of documentation that the insurance company, co-op or group that allows you to purchase insurance at a self employed rate. If they require nothing more than you saying you are self employed, then you are... If they require more documentation, then you may need to follow thru and actually become self employed. Technically speaking, you are not now self employed, you merely live from passive investment income which the key word being "passive"... An employment, whether self or otherwise, is an "active" involvement.
This could be easily rectified in that you could become your own investment advisor, having one client... you. You could form an entity or do so a sole proprietor, either one, but then you must keep records as such... (again depending upon how picky the org is that determines your status for ins purposes). You should file taxes as either a self employed person or an employee of the entity that you create. This may still be worth it to save 8K+ per yr on health ins. You will have to determine what is required and then decide if the red tape of being self employed is worth it to you... Count on paying more to get your taxes filed if you have an entity or self employment return, and then you may also pay self employment taxes based on 15.3% of you declared self employment income, which could be rather small...
What you need here is some tax advice so that you don't become declared a professional investor which may make more of you income subject to self employment taxes, as opposed to a passive investor as you are now... Nothing is easy, is it...?
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