About Catastrophic Health Insurance for the Self-Employed

Catastrophic health insurance is for healthy people who need protection from a catastrophic illness or health emergency but don't have the money to pay the higher premiums of a regular health insurance policy. The trade-off for lower monthly premiums are the higher deductible rates, making this type of policy for use only during a health catastrophe.

What's Covered

• Once the deductible is met, catastrophic health insurance covers major medical expenses such as emergencies, lab work, surgeries, ambulance rides and hospital stays.

Premiums and Deductibles

• While monthly premiums are lower than traditional health insurance, ranging from $125 to $270 a month, the deductibles are extensively higher at about $500 to $15,000.

Be Healthy

• Catastrophic health insurance is specifically for the healthy. If you have a preexisting illness or health condition such as heart disease or diabetes you will not qualify for this type of insurance.

Not for Routines

• While this type of insurance can prevent you from going uninsured, know that it's not for routine checkups. Catastrophic health insurance can help prevent your business from going under should a health emergency arise, but only if you can afford to pay the high deductibles before the coverage takes over.

Types of Insurance

• Comprehensive insurance is similar to traditional health insurance, yet with a lower monthly premium and a higher deductible. Supplemental insurance acts as a supplement to other health insurance policies you may have, with a lower monthly premium than a comprehensive plan.