Disability Insurance for Self Employed Professionals
Today, due in large part to the mass company layoffs of the past several years, more people have become self-employed. For those who fall into this category, disability insurance for self employed professionals is extremely important, as it can be the only thing that protects your income in the event of an unexpected illness or injury.
Imagine for a moment what would happen if you were unable to bring in an income for a week, a month, or a year. How would your living situation be affected? Would you be able to maintain the same lifestyle? Would your mortgage be paid on time? Or would it require substantial cutbacks, dipping into savings, or a reliance on family and friends for financial support?
Where to Look for Disability Insurance for Self Employed Professionals
Today, searching for disability insurance coverage can be easy and convenient thanks to the Internet. Our company can allow you to compare the features and benefits of top rated disability insurance companies and to obtain quotes quickly.
In most cases, you can protect between 60 and 80 percent of your wages – which essentially can also help you in shielding some or all of your savings as well, keeping funds in-tact and in place for the purpose they were originally intended for.
Constructing a Disability Policy
Disability insurance for self employed professionals and the policies that they can purchase contain several components. These include:
- Benefit Amount – The amount of benefits that you will be paid are based on your income. In most cases, disability insurance policies will pay out between 60 and 80 percent of your pre-disability wages. For those who are self-employed, it will be important to provide proof of your income to the insurer, as it is oftentimes more difficult to show all of your income sources.
- Length of Benefits – The length of your benefits can be stated as a number of years such as 2 or 5, or you may alternatively choose to have your benefits paid until you reach a certain age. Many financial professionals recommend that you opt for a benefit period of at least 5 years.
- Elimination Period – The elimination period refers to the length of time between the beginning of your disability and the time that your policy’s benefits start to pay out. With this in mind, it is important that you have at least some cash on hand to pay your expenses during this period of time.