| |
As
a self-employed person, disability insurance may
be even more important for you than for the average
employee. If you suffer an injury and are unable
to work, you don't have the built-in luxury of
paid sick leave to tide you over. Thus, you should
take a serious look at your financial situation
and decide whether your cash reserves are sufficient
to carry you through an extended disability. If
not, disability insurance may be a good idea for
you.
|
|
| |
|
|
| |
If you choose to purchase it, disability insurance
could be the only thing that prevents you from
losing your home, your business, etc. If you're
unable to work for an extended period of time
because of an injury or illness, disability
insurance provides a financial safety net by
paying you monthly benefits until you are able
to return to work. Since your business is likely
your only source of income, your disability
insurance policy should have as short a waiting
period as possible. Most disability policies
have waiting periods of 30-180 days after the
onset of the disability or illness, but you
can typically negotiate for a shorter waiting
period. Keep in mind, however, that your premium
may increase as the waiting period gets shorter.
|
|
| |
|
|
| |
Since you can't get disability insurance through
your employer, you will have to purchase it on
your own. This is typically not difficult to do.
In fact, many people purchase individual disability
policies to supplement the coverage provided by
their employers. |
|
| |
|
|
| |
Individual
disability insurance is truly a basic concept.
It is an insurance product designed to replace
anywhere from 45-60% of your gross income on a
tax-free basis should a sickness or illness prevent
you from earning an income in your occupation.
Every disability insurance policy from every insurance
company is very different, this is not a product
to simply shop for the most competitive rate.
To buy the cheapest disability insurance policy
on the market is to throw money away. The odds
of getting paid a monthly benefit under a cheap
contract may be significantly lower than receiving
benefits from a quality contract. |
|
| |
|
|
