Disability Insurance Articles

How Self Employed Individuals Can Still Secure Disability Insurance

2011-11-01

It's true that disability insurance isn't the easiest type of insurance to get when you're self-employed, but it doesn't mean it's impossible. There are insurance limits that you must adhere to as well as minimums that you must meet in order to qualify for the insurance. Once you become insured, you're then able to provide for your family if you become disabled in any way.

The insurance limits you to certain things. For example, you will need to provide proof of income and most insurance companies require that you make at least a certain amount of money per year. From there, you will then be able to get as much as 60% of your income back if and when you become disabled.

This 60% can vary from insurance company to company. This is the high end of the spectrum, so you will need to shop around for the options available to you. There is also the factor to consider of the monthly premium cost. The higher the percentage that you can collect, the more money you will pay each month. You should also look for the verbiage in your policy. You can get one to say disability for your "own" occupation or for "any" occupation. This is critical because it could prevent you from collecting disability. If you are unable to do your own job but could do some other job, you might not be able to collect.

Each state has guidelines for insurance and it's a good idea to familiarize yourself with these before you go in search of disability insurance. This way you'll know exactly what you are entitled to when you speak to the insurance companies to make it much easier on yourself. Another thing that you can do is go through an insurance broker. The broker has no fees for you to pay as they are paid by the insurance company you eventually choose. A broker works with many different insurance companies and can help you choose the best disability insurance for yourself employment status.

When you choose a broker, you are almost guaranteed that you get the best policy at the best price because they can explain all of the terminology to you. More importantly, they shop around for the lowest premiums so that you don't have to. You just tell the broker what you want and they'll provide you with more than your fair share of rate quotes to make it easy for you to decide which company you want to go with. Disability insurance is critical when you're self-employed, so make sure you have it and have the right kind.