Disability Insurance For The Self-Employed

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Disability Insurance For Home Based Business Owners

Disability Insurance for the self-employed is vital to protect yourself and future earnings. Individuals who are self-employed rely on themselves and their business to make money. Protecting yourself and family with this type of insurance will protect your future earnings and save you from debt in the future.

Why Do I Need Disability Insurance For The Self-Employed?

  • Being self-employed and having your own business is one of your greatest assets. You depend on yourself to efficiently run your business and earn an income. Disability Insurance protects this asset.
  • Disability Insurance will be able to replace about 60% of your income if you are ever unable to work due to an injury, illness, or disability.
  • Having this coverage in place will allow you and your family to continue paying for your mortgage, utility bills, childcare, groceries, etc. while you can’t work.

Why Else Should I Consider Disability Insurance?

  • You are more likely to face a disability than death in your working years.
  • Most illnesses/injuries/disabilities last longer than 3 months. The money you gets from your insurance policy will help you avoid taking from your savings, maxing out credit cards, and borrowing from others.
  • While you are recovering, you are unlikely to take on another job. The money you get from your insurance policy will help with your daily bills and unforeseen expenses.
  • Sell-employed individuals don’t have access to Group Disability Insurance that is usually offered to people who work for companies. Getting Disability Insurance for the self-employed from a private advisor is the way to go.

Special Considerations For Your Policy

  • The formal definition of Total Disability should be defined in your policy as “Own Occupation”.  This term means you will be considered disabled if you can’t complete the duties of your own occupation, versus any occupation.
    • With this definition, you should be able to collect benefits as long as you can’t perform as owner of your company.  This provision helps you, as the business owner, maintain financial protection and security until you can do the exact job that you specialize in.
  • The definition of Residual (or Partial) Disability should be “Loss of Income”.  While more expensive than “Time & Duties”, Loss of Income ensures your benefit will make up the difference in your pre-disability income up to a set percentage (usually 80%-90%) until you can earn that amount on your own.
    • Because it may take months to rebuild a client base once you return to work, Loss of Income is necessary to cover your income until things begin to improve.

Reward and Protect Yourself With Disability Insurance

Being self-employed is a great accomplishment and will be one of your greatest assets. By having Disability Insurance for the self-employed, you will be financially protecting yourself in case you can not work and earn an income.

We can customize a policy that will protect you when you really need it. Call us at (800) 788-8921 or fill out our Contact Form to be contacted by an experienced advisor.

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