Medical insurance for self-employed

[lookingforjob]

I'm curious, if most self-employed people pay for medical insurance? I for one don't pay, but I'm considering doing so.

Do you pay for your own medical insurance if you are self-employed?

[RSTech]

I got set-up a year ago. I live in Ontario so of course OHIP (or whatever they call it these days) will cover a certain amount like Doctor visits, emergency room at the hospital, etc. But there is a lot it doesn't cover.

My financial advisor is also an insurance broker so she custom tailored various benefits for me. I pay for my own:
- Term 100 Life Insurance policy for both my wife and I. Good until I'm 100 years old or dead; whichever comes first! Also got life insurance policies on the kids which they can continue after they hit 25 years old if they like.
- Critical Illness insurance for me. If I get a critical illness such as cancer I will be paid a lump sum to use however I feel fit.
- Long term disability insurance for me. I'm in and out of factories every day and if I happen to get in an accident I want to make sure I still have income. This will pay me a monthly wage for life if I can't perform the duties of my job.
- Hospital and Drug benefits. This covers 80% of prescription costs, a certain amount of glasses and eye exams, chiropractor, semi-private hospital room, anesthesia, and a slew of other things for the whole family.
- Out of Province Travel insurance. This covers my entire family when I'm out of the province whether for business or pleasure. Hospital stays, medical transportation home, etc.

I also have Worker's Compensation Optional Insurance through the WSIB to cover up to a maximum of about $70,000 per year if I'm involved in a work-related accident.

I wanted to make sure I had decent coverage because although my job isn't excessively dangerous I am around dangerous equipment a lot. Primarily I work with lower voltages, 600Volts and less but it can still do a lot of damage (death). I work around moving equipment but I am quite strict when it comes to applying safety rules such as proper guarding, equipment, lockout, etc. Believe it or not but my biggest concern is always being run over by a fork lift truck. Those guys drive like maniacs!

All told my benefits cost about $4500 per year and the Worker's Comp is an additional few hundred dollars. Don't even ask about the CGL and Errors & Ommissions insurance I pay to protect myself from lawsuits!

[lookingforjob]

Thanks Rob,

$4,500 sound a lot, but I guess that's the prices for all these benefits. At one point I was looking for Errors & Omissions insurance, but all companies I called didn't want to deal with one-man company (they all said they do group insurance only). What company does your Errors & Omissions insurance? Is the Errors & Omissions insurance expensive too? What is CGL?

Thanks for taking the time to help me!

[RSTech]

I have my Errors & Ommissions and CGL (Commercial General Liability) with Enron through Aon Reed Stenhouse (broker) out of Ottawa. I am a Certified Engineering Technologist through OACETT (Ontario Association of Certified Engineering Technicians and Technologists) and one of the benefits is access to this liability insurance through a group plan set up for OACETT. Since it is a group plan it is reasonably priced (relatively speaking). I pay about $3500 per year for 2 million CGL and 2 million E&O. The next closest quote I had was for $7500 per year for a 1 million dollar policy. I had similar problems getting turned down because I worked for myself. Funniest thing is Enron turned me down as an individual but had no problem insuring me through a group plan.

By the way, the $4500 I pay for my other benefits was the best price and best benefits out of 4 different quotes I got. I also got quotes from the local Chamber of Commerce Group plan, an OACETT group plan, and an individual policy I looked at. The best value and best benefits I got were through my Financial Advisor; I guess that's why its good to go through a broker.

[lookingforjob]

Thanks Rob,

Your help is greatly appreciated!

[contractor]

I agree it is not very easy to find good insurance package when you are one-two people company. My wife and I are both self employed and we don't have medical insurance and every time I visit the dentist I think about that but the insurance companies prefer to work with companies of 10 people and up... Maybe we should all go together and ask for a group insurance. :)

[Tsveta]

The best value and best benefits I got were through my Financial Advisor; I guess that's why its good to go through a broker.


I agree with Rob that the best thing you can do is to work with insurance broker. If you call Manulife or Canada Life you are just getting nowhere.

I am curious do you need to do a physical for the life insurance?

[RSTech]

I am curious do you need to do a physical for the life insurance?
When I got this insurance I did not. When I got a different insurance policy about 6 years ago I had blood work and a urine test from a nurse that came to the house. It depends on the insurance company. All of them have fairly detailed questionnaire's about your health and the health of your parents (looking for hereditary issues).

[Tsveta]

When I got this insurance I did not. When I got a different insurance policy about 6 years ago I had blood work and a urine test from a nurse that came to the house. It depends on the insurance company. All of them have fairly detailed questionnaire's about your health and the health of your parents (looking for hereditary issues).

Thanks Rob,
I guess all that is important when you are setting up your insurance policy…

[lana]

Can you get covered only for dental, or you have to choose from different packages?

[limberloc_11]

I believe that is possible to get just dental...not too sure will have to look

[RSTech]

Can you get covered only for dental, or you have to choose from different packages?

You can get just dental but I opted not to get dental coverage at all because it is really expensive! It was going to cost about $200 per month for my family (myself, wife, and 2 kids). None of us have dental problems we just go for an annual check-up. Also the plan has all kinds of exclusions such as braces and orthodontry work. So what good is it. I can pay the insurance company $1200 per year to get 80% of my annual check-up costs back or pay all my own costs for around $300-$350 per year. And before you ask, dental accidents such as getting a baseball in the teeth at a ball game or injury from a car accident or something like that is covered in my Health Care package. In my opinion, dental insurance is crazy! But that's just based on the 3 quotes I got.

[Tsveta]

I think it is worth it only if you have major dental problems, need crowns, bridges that sort of thing. Most packages cover you only 50% for major dental work anyway.

[philip]

Insurances are not only expensive but in many case impossible to get. that is why we offer access to all these covers to our members, cheaper than I have seen them else where.
By simply bundling up all of our members and employees we have finally got to the level where we can negotiate better deals from the companies. Simple group purchase power, happy to give details but don’t want to be seen to be self promoting on the site so if interested drop me a line or visit the site, see below.

[limberloc_11]

While do some reasearch it is possible to just purchase dental....or anything else you are looking for. Best of all save more money if you can go with group plan insurance

[lana]

You are right; it doesn't make sense to get only dental. The insurance will be too high…I wonder why this is not covered by OHIP?