How to Get Private Health Insurance if You’re Self-Employed?

Health Insurance for Self-Employed: What You Need to Know

Private health insurance is necessary for most people, but it can seem even more complicated if you’re self-employed. How does personal health insurance work? What does private health insurance cover? How much will my tax be affected by my private health insurance status? In this blog post, we’ll answer all your questions & help you decide what the next best steps are for your situation.
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What Does Private Health Insurance Cover for Self-Employed Workers?

Private healthcare plans, in general, have two types of coverage: hospitalization and medical care (i.e., doctor visits).

Therefore, it’s essential to understand how each type of plan covers these items before deciding on one that suits your needs.


You see:

If an individual isn’t under any other policy, then their private health insurance will cover 100% of their hospitalization costs up to the plan’s limits. However, if they have another type of policy (i.e., public), then it’s possible that they may not be covered for all or part of these expenses depending on what other plans are in place and the rules outlined by each insurer.

Medical Care

Private health care plans also help with medical costs such as doctor visits, prescriptions, and dental treatment. But, again, there can be some questions about how much your plan covers and whether you need a supplemental policy called an “excess” policy.

Private medical insurance won’t pay your lost earnings for the time you’re unable to work, which is why it’s essential to also have an income protection policy in place.

What It Doesn’t Cover

There are a handful of things private health insurance may not cover that many people don’t realize. One is any medical expenses that are deemed to be a pre-existing condition. If you had some chronic conditions1 before taking out your policy, it might not cover the cost over time.

Here is a list of things it doesn’t cover:

Let’s have a look:

  • Medical expenses that are deemed to be a pre-existing condition
  • Costs for experimental treatments or medications not approved by the government
  • Obstetrics and pregnancy care, even if you’re expecting. These services may be covered under some policies but will have limitations on what they cover. For example, some policies may only pay up to $800 in maternity hospital charges. Your policy might also require a referral from your general practitioner before it covers maternal health costs incurred after giving birth (postnatal)

Do I Need Income Protection Insurance?


If you become unable to work, income protection insurance covers a percentage of your pre-disability earnings. This type of health cover can benefit self-employed workers who don’t have access to superannuation or other benefits.

You could choose two kinds of insurance, a long-term plan that typically covers you until you can work again or short-term coverage that lasts for one or two years and can protect your income and any outstanding debts.

How Does Private Health Insurance Affect My Tax?

Private health insurance2 is not tax-free. If you pay for private cover, your premiums are considered to be an additional expense and will need to be included in your taxable income at the end of the year.

If you are self-employed and offer private health insurance to your employees, it’s tax-exempt.

Private health insurance premiums are not deductible for those who earn more than £100,000 per year.

And the bottom line?

If you’re self-employed and have a high risk of incurring significant medical expenses in any one year but less likely to incur them throughout your working life (e.g., because you travel overseas often or work in dangerous industries), private cover can be worthwhile even if it is exempt from taxation.

Common Questions

What Is the Best Health Insurance If You Are Self-Employed?

Should I Put My Health Insurance through My Limited Company or Personally?

Can Limited Company Directors Pay For Private Healthcare Insurance for Their Employees?

Where Can I Find Private Health Insurance If I’m Self-Employed?

In conclusion

In short,

Private health insurance for the self-employed is a smart move that can help you protect your finances and manage an unexpected illness or injury. Whether you choose to get long-term coverage or short-term, it’s important to know how private health insurance affects tax so make sure you read up on what type of plan best suits your needs – no matter where in life you are right now!

In addition to income protection, some private plans also offer other benefits such as maternity leave cover which may not be available with state funded healthcare.


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