Outside of taxes, trying to get quality, comprehensive, low cost family health insurance can be the most frustrating aspect of being self-employed. Affordable family health insurance can be expensive, even for the traditionally employed, but as a self-employed individual, health insurance for the family can easily be one your biggest expense each month. Comprehensive family health insurance becomes even more difficult to get if anyone in your family has a pre-existing medical condition.

Some things to keep in mind as you try to secure a health insurance plan for you and your family:

1. Some states offer ways to get insurance coverage even if a family member has a pre-existing medical condition. Look into the options your state offers. Get a family health insurance quote and see if it is something that can work for you.
2. Find an insurance plan that is going to adequately cover your family’s most base needs.
3. Look into your eligibility to deduct your health insurance premiums from your federal taxes.

Action Steps
The best contacts and resources to help you get it done

Know the insurance options offered by your state

Affordable family health insurance can be near impossible to find if you or any member of your family has pre-existing health conditions. Some states offer options to help those who are self employed to afford family health insurance even if their medial history isn't the best. 34 states offer Health Insurance Risk Pools that allow individuals or families with pre-existing medical conditions to buy into an insurance pool where costs are partially offset via assessments to health insurance carriers, but be wary because many states HIRP's are woefully under funded and poorly managed.

I recommend: The Health Insurance Resource Center offers a comprehensive list of states with the best Health Insurance Risk Pools and their contact information.

Find the right mix of benefits and costs that fits your family's needs

Many low cost family health insurance plans don't begin to cover all the needs of you and your family. Often you can pay high premium and still not get basic coverage for fairly routine events such as pregnancy or wellness checkups. The best way to compare costs between plans is to get several family health insurance quotes from various companies so you can compare differing plans with the solid numbers in front of you.

I recommend: EHealthInsurance.com offers a quick and easy way to get family health insurance quotes from several insurance companies at one time.

Understand the health insurance related tax breaks available for the self-employed

With recent changes in the tax laws, the self-employed are now able to deduct the cost of their family health insurance plan premiums on their federal taxes. The deductions are allowed up to the amount of your actual income, meaning you can't deduct more than you make and use your health insurance premiums to show a loss for your business.

I recommend: IRS.gov features a section that talks about the health care deductions available for the self-employed.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  If you're leaving a traditional job looking to start your own business, COBRA can give you a chance to keep your health insurance coverage from your job for up to 18 months and gives you time to find a family health insurance plan you can afford.
• •  Don't be afraid to negotiate the family health insurance quotes you get from various insurance providers. If you don't ask, you may never know if there is wiggle room in the monthly premiums and the benefits they cover.