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What’s a Commercial Freelancer to Do about Health Insurance?

After getting yet another email a few weeks back from a reader, suggesting a post on health insurance for freelancers, figured it was time. I know this is a hot button issue for any commercial freelancer, often looming as one of the key issues giving salaried employees/aspiring commercial writers pause when considering the leap to self-employment.

If you’re single and in good health (like I am on both counts), health insurance really shouldn’t hold you back from the commercial freelancing life – psychologically or logistically. As I see it, there are far bigger boogeymen (usually imaginary if you’ve planned well) facing free agents like us. Will I go broke? Will I lose my house? Will I be reduced to standing on a corner with a “Will Write Copy for Food” sign? Nonetheless, it’s still one more thing to consider.

Since 1997, I’ve used Kaiser Permanente. I rarely step foot in the place (but you’re paying for peace of mind), but over the years, have been pretty impressed with their offering, services and thoroughness.

I’m not crazy about the fact that, like clockwork, my premiums go up every year by roughly 15+ percent, but all in all, I still pay a not-unreasonable $325 a month. Co-pays for doctor visits are $30, and a surprising number of other services are covered or subject to co-pays (as opposed to coming out of pocket to satisfy your deductible).

Women will typically pay more for health insurance than men of the same age, but depending on the plan, and the deductible and co-insurance level chosen, a single person of either gender can generally find a manageable plan out there.

And with some of the new clauses of the healthcare bill, you’ve got more protections than may have been the case in the past. And do NOT try to drag me into a debate on THAT issue; ain’t gonna happen. I will ignore you and delete your comments. No hablo ingles…;)

For those pondering going without – a temptation for singles in good health and feeling bullet-proof, I wouldn’t even consider it. Not worth it. One accident or illness and you’re in deep doo-doo.

And yes, if you have a family, it’s going to cost a good bit more. Not every freelance commercial copywriter has a gainfully employed and benefits-laden spouse to cover that base. But a quick look at Kaiser’s plans turned up plans in the range of $600-800+/month for a family of four, depending on options chosen (don’t take these figures to the bank; that’s Georgia. Your mileage may vary, etc, etc.).

Not great news, but not necessarily a deal-killer, either. Remember, stay in a job you hate, just for the bennies, and your health will likely suffer. Sort of defeats the purpose.

For the uninitiated, here’s a basic overview of an HMO. As a member of Kaiser, getting insurance on my own, I’m put in with a certain group of subscribers. I have no choice in the matter – that’s the nature of the HMO model – and I don’t know who they are (i.e., we don’t catch up for coffee…).

The nice thing about the HMO group model is that individual consumption of services doesn’t directly affect one’s rates. That’s good news and bad news. Good news: if you use a lot of services in a given year, you won’t be singled out for a skyrocketing rate increase. Bad news: even if you don’t use it at all, your rates will still go up every year.

A few resources:

For more information on health insurance (as well as life and disability insurance), click here.

To find a health insurance agent in your area, click here.

For insurance plans for creative folk, click here.

Assuming you don’t have a spouse with benefits, what do you do for health insurance?

If you have a family and had to get insurance on your own, how did you go about finding the best deal?

Any good health insurance resources you’ve come across for the self-employed?

Any strategies you’ve employed to get the most from your health care dollars?

The Confidence Conundrum: How a Newbie Writer Builds Enough to Succeed…

In my first commercial freelancing group coaching series, one of the participants said: “I think my biggest problem is uncertainty. I prefer feeling confident about what I’m doing – to be able to do it with authority, and I just haven’t been able to reach that point so far. I’m always afraid I’ll do it ‘wrong.'” Welcome to the human race.

Not at all surprisingly, that statement resonated with all the other “coachees,” and the same issue has been brought up by many folks in every series since. When you’re starting out in a new field, and often, as one’s first foray into self-employment, to boot, it’s easy to get mighty wigged out by this Big Unknown (a.k.a. commercial writing).

Sure, I’d like to think that commercial copywriting resources like my book can demystify the business-building process quite a bit, and it no doubt does. But still, until someone takes those steps for themselves, everything they read about in my book (or any other) is still untried, unproven – to them – and hence, still theoretical.

So, how does one develop the confidence necessary to make it as a commercial freelancer? How do you know you’ve got what it takes to succeed? How do you get yourself to a place where you can boldly go where you’ve never gone before?

Well, the bad news is if you’re a newbie, chances are, you’ll have to deal with this. But, that’s also the good news: most commercial copywriters starting out deal with this. Sure, if you’ve left a corporate position, and carry experience, clients and work from that industry – or ex-employer – with you, you’ll likely have an easier transition. But, that’s not the norm.

I see the confidence-building game as three-fold. Arguably, a lack of confidence is driven by a lack of mental adjustment, a lack of experience and a lack of knowledge. The mental side? Get comfortable with the fact that you likely won’t be comfortable for a while (one reason this field pays so well…). Just the nature of the beast, and knowing that’s the case should make it easier to deal with.

The experiential side? Self-evident. You gain confidence by doing. Every new commercial writing experience you have, every copywriting project you work on and complete successfully, is a brick in your own personal Confidence Wall.

You learn a little more about the commercial freelancing process, you understand a little more about copywriting clients – what they expect, how they are to deal with, and how to make their lives easier (your goal, by the way…). Sure, all situations are a little different, but there are always some commonalities in every scenario.

String enough successful commercial writing projects together (translation: growing respect, competence, portfolio, testimonials, and bank account), and one day you’ll wake up and realize that this gig is for real, and so are you. That’s where confidence is born. But it takes time.

The knowledge side? Along the way, of course, you can hasten the process by reading books on copywriting, marketing, sales, etc. The more you know, the more tools you have at your command when talking with clients about their challenges. In addition, study the work of fellow commercial freelancers. Visit their sites, see how they position themselves, look at their samples (starting with mine) to get a sense of the required skill sets.

How did you build confidence in your abilities when you were starting out?

Was there one particular project that stands out as a big confidence booster for you?

Do you remember the moment when you realized you had what it took to make it in this business?

Growth in Temps: Bad Sign for Employees, Good Sign for Freelancers

Saw an interesting bit in the Associated Press this morning entitled: “Use of temps may no longer signal permanent hiring” (link).

Here’s an excerpt:

When employers hire temporary staff after a recession, it’s long been seen as a sign they’ll soon hire permanent workers. Not these days. Companies have hired more temps for four straight months. Yet they remain reluctant to make permanent hires because of doubts about the recovery’s durability.

Even companies that are boosting production seem inclined to get by with their existing workers, plus temporary staff if necessary.

“I think temporary hiring is less useful a signal than it used to be,” says John Silvia, chief economist at Wells Fargo. “Companies aren’t testing the waters by turning to temporary firms. They just want part-time workers.”

All of which bodes well for commercial freelancers like us. Now, don’t get me wrong. Certainly don’t want to get gleeful about an ominous economic sign – one that appears to argue against a speedier bounce-back to the economy than perhaps originally anticipated.

That said, I have little control over the speed of the economic recovery, but if there’s one thing I’ve learned through the business ups and down over the past few decades, it’s this: what’s a bad sign for those seeking full-time employment is often a good sign for temporary/contract workers like us.

Fact is, the economy taketh away and the economy giveth. As the above article highlights, if you’re a temporary worker these days, opportunities are rich. And bottom line, that’s exactly what we freelance copywriters are: temporary workers.

And temporary workers like us offer some sound bottom-line pluses to those who hire us:

1) Buy only what they need and only when they need it
2) No salaries, benefits and vacations to provide
3) Fresh “outsider” perspectives
4) Access to a wide range of talent

The rise in temporary worker hiring underscores the growing workload these companies have, but as the article points out, in an uncertain economy, workers like us represent a darn good solution. And companies know it. The clincher: this is nothing new.

Over the past few decades, when the economy hit rough patches, and downsizing was the order of the day, I and others noticed the increased use of copywriting folks like us by companies who’d shed full-time staff (or pricey creative agencies), but still needed to get work out the door. And sure, once things turned around, as the above article points out, many companies added back full-time staff where it just made sense to do so.

However, many small-to-medium-sized companies (say, 50-200 employees and $5-$50 million in revenue; i.e., the business “sweet spot” for commercial writers), having seen, firsthand, the real bottom line advantages of the freelancer model over the full-time employee model – never went back. And it’s happening again as companies realize a lot of the services they need can be delivered by contract workers. And simply put, it’s changing the face of the workplace forever. Note the line in the excerpt above:

Even companies that are boosting production seem inclined to get by with their existing workers, plus temporary staff if necessary.

And heck, companies aren’t the only ones falling in love the idea of independent workers. Freelancers themselves have been discovering the joys of working for themselves for years now. And these days, you can’t spit without hitting yet another article about the rising trend in self-employment.

Sure, for many, it wasn’t their first choice, and in many cases, they had no choice. But, I know plenty of folks who started out as reluctant freelancers out of necessity some years back, got bitten hard by the bug, and like the companies that hire them, they too will never go back. Not just because of the dramatically enhanced quality of life, but because they finally “get” what us long-termers realized a log time ago: there’s far more job security in self-employment than there’ll ever be in a J-O-B.

Have you seen this scenario play out in your business experiences?

Have you had clients contact you to fill the work gap left by departing full-timers (or the dropping of an expensive agency)?

Did you start out as a reluctant freelancer only to be converted forever?