Term Life Insurance Tips & News
A 360 View of Life Insurance
Are You Self-Employed and Looking for Disability Insurance and/or Income Replacement?
Being self-employed comes with a lot of perks….you often get to make your own hours, work at your own pace, and if you stay home, you can even do your job in your pajamas if you want! But there are also a lot of responsibilities that come with working for yourself, and one of those is whether or not you need disability insurance.
Disability insurance for the self-employed is basically a means of protecting you if you become seriously ill from a covered illness or injury and can’t work. This policy is designed to replace a portion of your lost income.
While most companies or organizations provide short/long term disability for their employees, people who are self-employed don’t have this option unless they obtain the policy for themselves. And let’s face it – you never know when you may need to take an unexpected absence from work. In these situations, it’s best to know that you will still have an income while you’re not working, because that is the last thing you want to worry about when you are sick.
As far as the insurance goes, there are three types: short term disability, long term disability and critical care insurance.
Short term disability policies have benefit periods that last anywhere from 13 to 26 weeks. This type of policy also has a short waiting period, usually about two weeks, before you start receiving benefits.
Long term disability, on the other hand, has a lengthier waiting period of somewhere between 30 and 180 days. People with long term disability can expect to receive about 50-60% of their pre-tax income when a disability occurs. These benefits can be for 5 years, 10 years, or up to the age 65 or 70.
Critical care insurance policies can provide lump sum payments when an individual has been diagnosed with a covered illness. Covered illnesses can include suffering a heart attack, a stroke, cancer, or kidney disease. Most companies have approximately 20+ diseases or conditions they cover as a benefit.
Before choosing a policy, be sure and do your homework. Find a reputable insurance company that will offer you a plan that works best for you, and do some research so you’re informed and know exactly what you’re getting.
Special Insurance Types
