Individual disability insurance is a solid option
While many people have access to group disability insurance through their employer, this type of coverage is often not available to small business owners and other self-employed professionals. Fortunately, most people in this situation can secure similar, and in many cases, more protection by purchasing an individual disability insurance policy from an insurance company.
It protects your ability to earn
If you’re like most of us, your income is vital to you and your family. It’s the cornerstone of your finances. It keeps a roof over your head, food on the table, and helps you build a more secure future. As part of a protection-first financial strategy, individual disability insurance can help protect you and your family in the event of future loss of income due to a disabling sickness or injury that leaves you unable to perform the material duties of your occupation.
Here’s how it works
If you become disabled while this coverage is in place, you may be eligible to receive monthly disability benefit payments that you can use to help financially support your loved ones and maintain your quality of life. Payments begin at the end of your Elimination Period (an amount of time specified in your policy) and are sometimes free from federal income taxes depending on how you fund the policy. Unlike health insurance payments, disability benefits are paid directly to you, so you are free to use them however you like. In most cases, these payments will continue until you are able to return to work, or until the end of your benefit period, whichever comes first.1
Why does disability insurance make sense for the self-employed?
Over the course of their lifetime, 1 in 4 people in the workforce will become disabled and potentially face financial hardship at some point during their lives2. If you’re a self-employed professional, this can be especially difficult because there may not be anyone who is qualified to step in—even temporarily—to keep things running during your absence. With individual disability insurance in place, you will receive a steady flow of benefit payments that can help fill the financial gap caused by your absence.