Disability Insurance For Self Employed


These days, disability insurance is available for everyone including the self employed. While everyone needs disability insurance, it is even more important for those who are self employed.

An illness, accident or any unforeseen injury could hamper your earning abilities. Thus, it would only be a sensible decision to invest in a disability insurance policy. These days, disability insurance is available for everyone including the self employed. Here are some things that self employed individuals must know in case they are looking for disability insurance.

Importance of disability insurance for the self employed
While everyone needs disability insurance, it is even more important for those who are self employed. This is because salaried individuals are still entitled to various benefits such as paid leaves and medical allowances. However, self employed individuals do not have any source of income if they happen to suffer from an injury or fall sick.  Thus, if you are self employed, it would only be wise to invest in a disability insurance policy.

Things to consider
If you are a self employed individual and you are considering a disability insurance policy, then there are various things that you need to bear in mind before you zero in on a particular policy. Here are some of them.

* Cost of your lifestyle. You need to determine the average cost of your day to day living before you zero in on a particular policy. Whatever disability insurance you choose, it should at least be able to take care of your daily finances.
* Other source of finance. Self employed individuals are also entitled to certain grants from government resources. Besides, most individuals have several other sources of income other than their business. This could be in the form of interest for some money lent. Consider these sources of income and then decide how much you would want from your disability insurance policy.
* Coverage. Typically, disability insurance policies for the self employed offer coverage for only 50 to 60 percent.
* Waiting period. This refers to the time period for which you have to wait before you start receiving your disability insurance benefits. In case of disability insurance for self employed, the ideal waiting period is 30 to 180 days from the onset of illness. Try to ensure that the waiting period is as less as possible because your business is the only source of income. However, make note that lesser the waiting period, the higher will be the insurance premiums.
* Benefit period. You also need to decide the benefit period for your disability insurance. Different policies offer different benefit periods. So, you can easily make a choice.

Bear these things in mind if you want to take the right decision as regards choosing a disability insurance policy.

Don't let your business run into losses in case of a disability. Have disability insurance and prepare yourself for any unforeseen eventualities.