elderly man sits in a wheelchair

Disability Insurance for the Self-Employed

Not everyone can guarantee a long professional life that is free of illness and injury. Self-employed disability insurance for entrepreneurs is designed to replace the income that you missed while you were ill or injured. It is a form of protection that is needed to prevent people from going broke or bankrupt. However, as a self-employed worker, you have to determine the benefits that you need and choose your own disability insurance policy.

There are several ways that self-employed entrepreneurs get insurance for disability. Collect the information that pertains to your wages throughout the years that you have worked. Look for records of your tax returns as well. Insurance providers want to see proof of your taxes and employment.

Then, contact a broker who specializes in disability insurance. This professional works with a wide range of insurance providers instead of only one. Finding the right policy is important because different policies come with different costs and requirements. As a self-employed policyholder, create your own policy. Choose the plan that allows you to receive the most benefits. Choose an amount that makes up as much as 65% of your salary. Decide the exclusion period needed if you plan to use up the savings before receiving benefits.

After you complete your policy, complete the medical application forms. Show proof of your medical history before and after the disability. With a large slew of medical problems, you may not receive a policy, but you may get a high premium to pay. Having good health is important if you want to look for a good policy.

There are several requirements that come with getting a self-employed disability insurance plan. One major requirement is that you have to be self-employed full-time and make a minimum income every year. The work must be done regularly and not seasonally. To qualify for Social Security disability assets, self-employed individuals must have worked for a set number of years and paid taxes. If you contest any disqualification of benefits, you have a right to hire a lawyer and take the matter to court.

Any self-employed person can easily run into financial problems because of a disability. You must protect personal and business assets before you drain any bank account. Receive regular living expenses to continue living and working on professional endeavors. That is why short-term and long-term options are available if you want disability insurance.

Last Updated: April 15, 2015