Is Disability Insurance for the Self Employed available? Yes. In today’s job market more and more people are becoming self employed. Considering the rise in unemployment, layoffs and business closures, individuals within this class may also find themselves as the main source of income for their family. In the event of an unforeseen accident or injury, disability insurance for the self employed is one of the best ways to protect you from a financial misfortune. If you are self employed, purchasing disability insurance will safeguard your assets, net worth, lifestyle and the welfare of your family. Your greatest asset is your ability to bring in an income. It is, in fact, that income that permits you to acquire other assets such as automobiles, homes, boats or vacation homes. However, since a self employed individual does not have the benefit of paid sick leave or employer paid disability insurance, purchasing disability insurance ins your only option.
What is the Benefit of Disability Insurance for the Self Employed?
An untimely injury coupled with unprotected wage loss can lead to an immediate financial crisis. Disability insurance serves to protect your assets by providing coverage when income is lost. Typically, these policies go beyond mere asset protection and include food and other day-to-day expenses. When considering disability insurance determine precisely what your expenses would be to maintain your current lifestyle.
Things to Keep in Mind When Considering Disability Insurance for the Self Employed
- Locate a trustworthy insurance agent.
- Purchase the maximum coverage that you are capable of affording.
- Determine the costs of your lifestyle. For example, your mortgage, automobiles, and foreseeable future medical expenses.
- Determine what you would receive from existing sources and governmental resources.
- Keep in mind that most disability insurance for the self employed will only provide coverage up to 50 to 60 percent of your income.
- There will most likely be a waiting period imposed. In the event that you select a shorter waiting period you can expect higher insurance premiums.
- The length of the benefit period is also a variable item. You can select anywhere from months, years or your entire life time. This is another item that will affect your premiums.
As a self employed individual, disability insurance will provide you with a piece of mind knowing that your assets and lifestyle stay protected.