How to Find the Best Disability Insurance When Self-Employed

Declines in job security have encouraged more Americans to move into self-employment. The latest research reveals that nearly 30% of Americans are now self-employed.

Self-employment has traditionally not been the norm and you may be wondering how you can get the right insurance coverage for disabilities. Will insurers even cover you? How can you get an affordable policy with the right amount of coverage?

How to Find the Best Disability Insurance When Self-Employed

See Also: Health Insurance For the Self Employed: Here’s What You Need to Know

Can I Get Disability Coverage?

Insurers do offer disability insurance to the self-employed in the form of individual and group plans. Without you, your business grinds to a halt and you cannot put food on the table.

Forget about relying on Social Security payouts. These have extremely strict eligibility requirements and will likely not cover all your expenses.

Thankfully, the self-employed do have viable coverage options that can protect themselves and their families in case the worst happens.

1.       Shop Around

Always shop around before settling on a policy. With almost 6,000 U.S. insurance providers nationwide, you have a lot of choices.

Comparison calculators, recommendations from friends, or even speaking to companies directly are all ways to shop around and ensure you get the best coverage for the lowest price.

2.       Factor in Payouts

It’s generally established that a disabled person needs between 50-70% of their pre-disability income to survive.

Take the time to investigate how much a policy would pay if you ever needed it. For the self-employed with no other sources of coverage, this is particularly important. 

In this situation, it is also worth considering any additional benefits that you may be entitled to help support yourself and your family. For instance, if you were in the military prior to self-employment and injured in service, you could very well be entitled to disability compensation. You can find out more here at Stone Rose Law. 

3.       Consider Policy Length

Unlike other forms of insurance, disability coverage for the self-employed generally extends only two to five years into the future. Longer policies cost more than short-term coverage.

Insurers do allow you to extend your policy for as long as you like or need, though. Consider how old you are when thinking about policy length.

4.       Think About Additional Features

Like all insurance policies, there are several add-ons available. Some of the aspects you’ll need to think about include:

  • Waiting period
  • Residual disability
  • Own-occupation

Every rider will increase the cost of your premiums, so consider the likelihood of what you’ll actually need if you do incur some form of disability.

5.       Compare Quotes

Picking out disability insurance, even if you’re self-employed, is relatively easy. What’s difficult is securing the lowest possible quote for the highest level of coverage.

You have an advantage, however. The hyper-competitive nature of the insurance market means that insurers are scrambling over each other in an attempt to secure your business.

Spend some time comparing quotes for similar policies. You could save thousands of dollars in the long term by doing your research.

Final Thoughts

The self-employed are as eligible for disability insurance as anyone else. Depending on your occupation, you may be required to pay more if insurers consider you at greater risk of sustaining a disability.

Finally, take the time to do your research because it’s worth it in the end, and don’t scrimp on the level of protection offered.

How to Find the Best Disability Insurance When Self-Employed

James Farner

James Farner is an author who has been writing professionally for eight years. For four of those years, he has been traveling full-time. So far he has visited 63 countries on five continents.

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