There are many insurance companies that offer short term disability insurance for self-employed men and women. These are policies that tend to pay an income shortly after the onset of a disability but they will only pay a short-term benefit.
Money received after filing a claim can make a huge difference to a family with a disabled member. However, by definition, the benefits of a short-term policy are temporary.
The small business owner, who will have no source of income after their disability insurance coverage stops paying, may try to go back to work too early. This can jeopardize their health. The effect of an injury or illness can make returning to work impossible or unwise for many years.
In some cases Social Security may pay a benefit to an individual. However, this typically takes at least twenty-four months and qualifying is difficult. You can pay lower rates if you purchase a short term policy because you believe that Social Security will pay you a benefit. However, the money saved may not justify the lack of protection if the government doesn’t come through for you.
The same companies that offer short-term plans usually sell policies that will cover a long-term disability. This gives many the opportunity to continue to get the care they need to heal more fully from their injuries or illnesses.
The premium paid each month for a long-term disability policy will be higher than for a short-term plan. However deciding to buy better coverage lengthens the period of time you are paid by the insurance company if you have a long term disability. This can make you glad that you paid the extra money.
It is important to note that this coverage is available to the individual who may be self-employed. Many erroneously believe that it can only be purchased by workers from their employers. Although programs available through jobs are often available to all regardless of their medical history, a healthy person will typically be able to qualify for an income replacement plan.
One financial benefit to purchasing a personal policy is that you are more likely to receive benefits without taxes taken out. (This information should be checked with a tax professional because your situation may not be typical.)
Often when a policy is purchased through an employer, the policy is lost when the employee decides to leave that employer. This is usually not a concern for the small business owner.
Purchasing a disability insurance policy can help you continue to stay in your home and continue to provide for your family. Don’t wait another day before you get quotes for disability insurance.