Great post

I wouldn’t go the LLC route — costly. Then again, I haven’t worked the numbers for insuring an entire family, so you’ll have to do that research yourself (form an LLC and get a group rate if you can vs. stay a sole proprietor and buy individual insurance). I’ve always bought individual insurance.

Here’s an old post I wrote on individual health insurance. To those tips, I will add:

1. Talk to an insurance agent (one who represents a variety of companies). They don’t cost you a thing, and they may be able to save you money.

2. Some freelancers get health insurance through Costco, their local Chamber of Commerce, or various other professional organizations. Don’t overlook these. They’ll likely be cheaper than COBRA insurance.

3. Raising your deductible can save you a bundle in annual premiums, but it’s important to look at what sort of health care you normally need. Again, a good insurance agent can help you weigh all these questions.

I know quite a few people who got laid off recently or who are seriously concerned about their job security — who wouldn’t in this economy? I like your advice on getting a couple of freelance jobs on the side. Diversify income source is crucial.

One question I have for you: for folks who have family to support, health insurance is an important consideration. How do you freelancer handle health insurance? Do you set up a small business entity such as LLC, and buy small business health insurance? or you just purchase individual health insurance directly? I think having the extra “health insurance” back-up would also be a very important protection for many families in this economy.

thanks.