How to Put Together a Benefits Package When You’re Self-Employed

You’ve finally decided to be your own boss. You won’t miss your overbearing manager, endless meetings that should have been emails, or white-knuckled commute. But you certainly will miss some of the perks that came with the job, like health insurance or a retirement savings… How to Put Together a Benefits Package When You’re Self-Employed as published on Women Who Money You’ve finally decided to be your own boss. You won’t miss your overbearing manager, endless meetings that should have been emails, or white-knuckled commute. But you certainly will miss some of the perks that came with the job, like health insurance or a retirement savings plan employer match. Fortunately, it is possible to put together a robust benefits package when you’re self-employed. We’ll show you how. Chat with Human Resources The first thing you should do is chat with your soon-to-be (or already) former employer’s human resources department. A representative from there can go over what will happen to your benefits after you leave the company. Be sure to get answers to all of your questions and discuss things like: When will your medical insurance coverage end?How much does COBRA coverage cost? Will you get your unused paid time off in a lump sum in your last paycheck?Is your employer-sponsored life insurance policy portable (meaning you can keep the policy and pay for it on your own)? Will you get your full pension?What’s the contact information for your retirement savings plan provider? Pro Tip: Now’s also a great time to determine if you’re eligible to get on someone else’s insurance coverage, like a spouse’s or parent’s. Prioritize Your Perks Once you know what your previous organization will do for you, list all the benefits you want to replace. Then, rank them in order of importance. That way, you have a plan to keep you organized. For example, if your spouse can add you to their health insurance, you can shift your focus to rolling over the funds in your 401k into a new retirement savings account or getting a new life insurance policy. Pro Tip: Don’t forget to double-check your list. You probably included the major benefits, such as health insurance, life insurance, and retirement savings. But did you account for perks like long-term care, pet, or disability insurance? Determine Your Budget As an employee, your employer might have covered a high percentage of your insurance premiums, matched a portion of your retirement savings plan contributions, and paid for other perks. But now, that responsibility falls solely on you. So, before you start assembling your self-employed benefits package, you must determine how much you can afford to spend. To do this, review your existing budget and your new income level. Do you have any wiggle room? Will you need to cut other spending to free up funds to pay for your benefits? Make sure you set a monthly limit that you can comfortably sustain. That way, you won’t find yourself scrambling to cover your insurance premiums during a lean period in your business.  Shop for Insurance Now that you have a budget in place, you can shop for insurance. Many freelancers, contractors, and solo business owners visit the Healthcare Marketplace. From there, you can review your options and enroll in the right coverage for you and your family (if applicable). Depending on your income, you might qualify for a plan premium subsidy, reducing your monthly cost. Even if you’re not eligible for a subsidy, a comparable marketplace plan will likely be cheaper than COBRA coverage. Note: Since your loss of employer coverage is considered a qualifying event, you don’t need to wait until open enrollment to obtain a new policy. If you don’t find a policy you like or can afford on the marketplace website, you may want to check out a Health Care Sharing Ministry. It’s not health insurance. Instead, it’s a program where group members help to pay for each other’s medical expenses. You need to be religious to qualify, and there’s no guarantee a particular claim will get covered. However, your monthly financial responsibility will likely be far less than if you opted for a traditional health insurance plan. Need dental and vision coverage? Your health