disability insurance for the self employed

Disability Insurance for the Self-Employed: Why It’s Essential

Share on facebook
Share on twitter
Share on linkedin

If you’re self-employed, you’re probably used to taking care of everything on your own, from marketing your business to managing your finances. However, one thing that many self-employed individuals overlook is disability insurance. While you may think that disability insurance is only necessary for people who work traditional 9-to-5 jobs, the truth is that disability insurance can be just as important – if not more so – for self-employed individuals.

In this article, we’ll take a look at why disability insurance is essential for the self-employed, and what you need to know about getting coverage.

What is Disability Insurance?

First, let’s define what disability insurance is. Disability insurance is a type of insurance that provides you with income if you become disabled and are unable to work. Depending on the policy, disability insurance can provide short-term or long-term benefits, and may cover a portion of your income or the full amount.

Why Do Self-Employed Individuals Need Disability Insurance?

Now that we know what disability insurance is, let’s take a closer look at why self-employed individuals need it. Here are the key reasons:

1. You’re Your Own Safety Net

When you work for an employer, you may have access to disability insurance through your employer’s benefits package. However, when you’re self-employed, you’re responsible for your own safety net. If you become disabled and are unable to work, you won’t have a steady paycheck coming in unless you have disability insurance.

While there may be some worries about payout, there are disability insurance lawyers that can ensure you get what you deserve. Without disability insurance, you may have to rely on savings or take on debt to cover your living expenses.

2. Your Income is Directly Tied to Your Ability to Work

As a self-employed individual, your income is directly tied to your ability to work. If you become disabled and are unable to work, your income will suffer. In fact, depending on the severity of your disability, you may be unable to work for an extended period of time. Disability insurance can provide you with the income you need to cover your living expenses while you’re unable to work.

3. You’re More Likely to Become Disabled Than You Think

Finally, it’s important to remember that disabilities can happen to anyone, at any time. According to the Council for Disability Awareness, 1 in 4 of today’s 20-year-olds will become disabled before they retire. The risk of disability only increases as you get older. If you’re self-employed, your income may be particularly vulnerable to a disability, since you don’t have the same financial safety net as someone who works for an employer.

4. You Have More Control Over Your Recovery

When you’re self-employed, you have more control over your schedule and work environment, which can be a good thing in many ways. However, if you become disabled, you may also have more responsibility for managing your recovery. Disability insurance can provide you with the financial resources you need to focus on your recovery without worrying about how you’ll pay your bills.

5. It’s a Smart Business Move

Finally, getting disability insurance is a smart business move. If you become disabled without insurance, you may have to shut down your business or significantly reduce your workload. This can not only impact your income, but also your reputation and future earning potential. On the other hand, having disability insurance can help you stay afloat and even thrive during a difficult time, which can help you build a more sustainable and successful business in the long run.