Disability Income Insurance for the Self-Employed

Are you self-employed? If yes, then perk up your ears.

If you couldn’t work because of an illness or accidental injury, how would you pay bills and provide for your family and yourself? An individual disability income (DI) policy provides monthly income and protects your family, income, retirement, and assets so that you can pay bills, pay off debt, maintain lifestyle, and save for retirement.

Most claims for disability aren’t from on-the-job injuries, rather they’re for musculoskeletal disorders like back pain, illness, cancer, depression, and pregnancy.

An individual DI policy allows you to customize options, receive a tax-free benefit, and keep the policy no matter where you work, unlike most employer sponsored disability plans.

The Social Security Administration (SSA) offers disability benefits, but these federal benefits are difficult to qualify for and benefits are very limited. There are no federal benefits for partial or short-term disability. The SSA assumes you can cover a period of short-term disability with other insurance, worker’s compensation, savings, or investments.

How much does an individual DI policy cost?

There are several factors that impact the cost of self-employed disability insurance. These include the definition of disability, benefit period, percentage of income replacement, waiting period, a non-cancelable or guaranteed renewable policy, and various riders to improve your coverage. Your monthly premiums will also vary based on your job, age, gender, location, health, and tobacco use.

An individual policy is more expensive than an employer plan, but you will have more flexibility. For example, you may be able to choose from multiple definitions of disability, the waiting period, insurance company, and riders.

If you’re self-employed and you want coverage, ideally you need to have been in business for at least 2 years so the insurance company can see tax returns and the growth of your business.

To properly protect your business, family, and future, consider buying disability income insurance.

Get a disability quote here.

Request Your Proposal Here

Are you ready to save time, aggravation, and money? The team at Steadfast is here and ready to make the process as painless as possible. We look forward to meeting you!

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