Many business owners ask can you get disability insurance if you're self employed? If a self-employed individual is unable to work due to sickness or injury, disability income insurance can provide income while they get better.
Can You Get Disability Insurance If You're Self Employed?
Being self employed comes with a lot of benefits, but it also has some challenges. When it comes to things like insurance, being self employed can be confusing.
Most jobs where a person works for someone else have insurance included. This is true with disability insurance as well. However, if you're at a job where disability insurance is not covered, or you're self employed, you might want to think about pulling out a policy for yourself. So can you get disability insurance if you're self employed?
There are a lot of benefits to having one, and you might be surprised at how affordable these income replacement policies can be.
Why Have Disability Insurance
If you're healthy, you might be scratching your head on why disability insurance would be needed. However, disability insurance isn't usually needed until the healthy have an unfortunate accident and end up disabled or out of work for a while.
Think of disability as a safety net for you when something might go wrong. As a provider for yourself and for your household, going without your monthly income could be devastating. Financial devastation because of an illness or accident shouldn't be your reality. This could all change if you just had disability insurance to start with. Can you get disability insurance if you're self employed?
Most people view disability insurance as a necessity because you never know when an accident is going to happen. Just like with car insurance or home owners' insurance, it's there for when you are going to need it the most. Many don't even think about getting disability insurance because companies provide it a lot of times. There is also social security disability insurance that many people rely on. However, pulling out a policy for an emergency could set you up with a partial income that could keep you afloat should something happen.
If you thought that disability was only for when you get injured on the job, you're wrong. There are a lot of conditions that would qualify for you to file your disability claim. While injuries that are musculoskeletal definitely qualify for a claim, so do mental disorders like anxiety or depression. Conditions like lupus or cancer also would qualify for disability, so there are a lot of ways you could get use out of your disability policy than just being physically disabled.
How Much Does It Cost?
As an average person, we don't tend to like to spend money when it's not needed. Multiple insurance policies might sound like a way to get you to fork out some extra cash, but that's not the case. While some policies might not be needed, disability insurance is one that you should seriously consider. Just like with car or life insurance, the cost of this is going to vary based on your age, your past medical history, and the type of work that you do.
Even though some policies might be more expensive depending on your line of work, it is still worth the cost that you are going to pay. Most often, disability insurance is going to cost anywhere from 1-5% of your yearly income. Just for an example, assuming a person made $50,000 a year, they could pay a monthly cost of anywhere from about $40-$100. However, a policy like that would get the person a $2,500 monthly benefit should they need to file a disability claim.
Most often, disability insurance won't cover the full salary of your job, but it does provide a nice cushion when no other income is coming through. This is especially important when you are self employed because your income might be the only one the family relies on.
Can You Get Disability Insurance If You're Self Employed? - The Bottom Line
We hope this article on can you get disability insurance if you're self employed? was informative. Depending on who your other insurance policies are with, you might need to get a few quotes to see which company could provide you with the best rate. Once you find a company, the process of getting your policy is fairly easy. They'll ask questions about your medical history and type of work, and then you'll choose which policy is the best for you depending on the amount of money you'd receive if a claim were to be filed. It's a process that shouldn't take more than a week.