Skip to main content
No. of Recommendations: 0
"<< In our society there is an assumption by insurance companies that a person not covered by company group insurance is a poor health risk. >>

Actually Chris, this is NOT an "assumption" . . . .it's a fact. Keep in mind that insurance companies set their rates and underwriting requirements by large groups of people . .. NOT custom underwritten per individual."

Actuarily, of course you are correct. But the original questioner, and I when I was self-employed and paying for individual insurance, was not necessarily high risk. Right, the companies don't custom underwrite per individual, although they will ask questions about weight, smoking habits, prior conditions. I paid fancy prices for health insurance for several years and never used it. Wasn't sick. But I'll agree this is probably not, for large numbers of people, the overall experience of the insurance industry.

I don't see any reason why a self-employed person is necessarily higher risk than a person working in the same business for an employer who provides group insurance, but the self-employed person gets charged about double the rate paid by the person getting group insurance. Maybe the rate seems lower because the employer pays part, but the cost of health insurance is a real factor in making such desicions as when one can retire, and whether to accept employee status or be self-employed.
Best wishes, Chris

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.