What You Need To Know About Disability Benefits For The Self-employed

As a self-employed individual, there’s no better time to apply for disability insurance than today. The last thing you’d want is being unable to work as a result of an injury with nothing in your pocket to support yourself or your family.

What You Need To Know About Disability Benefits For The Self-employed

Saving for that rainy day can make a huge difference in your life as well as in the lives of the people who matter to you most. As a sole- entrepreneur, disability insurance will protect you and your income in case you are injured and are unable to work. 

How Disability Insurance Works For The Self-employed

When applying for any type of insurance, there are a lot of things you must know to help you in making an informed decision. You just don’t want to go into it blindly. It’s also important that before applying for any insurance policy, to ask all the right questions from your insurance agent.

With that out of the way, there are two types of disability insurance for both the employed and the self-employed. These include: 

  • Long-term disability insurance
  • Short-term disability insurance

Disability insurance for the self-employed works differently from that of the employed. One thing to note is that the application process can be a bit involving and with a lot of requirements to meet.

The most important thing, however, is to prove to your insurance provider that you have a steady income and are willing to commit to your monthly deductions. 

It’s A Fairly Easy Process To Apply

With so many insurance companies out there and insurance agents spread all over, applying for disability insurance has been made easy. You can talk with your agent to help you shop for the best policy and walk you through the underwriting process.

Nevertheless, It becomes a problem when filing a claim after a terminal illness or when you cannot work after a work-related injury. As a sole-entrepreneur, you can click here if you need to be guided on how to file a disability benefits claim.

It gets even trickier when you are denied your disability claim by the insurer and this is where social security disability lawyers come in. 

How Much To Expect In Benefits

This will be dependent on several factors. First and foremost, it will depend on the type of coverage you are on. As earlier mentioned, there are two types of disability insurance for both the employed and the self-employed namely, long-term disability insurance and short-term disability insurance. 

Additionally, there are other factors such as your age at the time of the application, your annual income, and your health status.

Now, this is what most insurance companies won’t tell you. Your pre-existing medical conditions will not be covered by the insurer. It’s therefore important to ensure that such information is disclosed before you can apply for disability insurance. 

You Need A Fall Back Plan Even With Disability Insurance In Place

disability benefits

The fact that you applied for disability insurance isn’t enough reason why you shouldn’t have a plan B. The thing is, some insurance companies may deny you your disability benefits. It’s a stressful situation given your condition.

This is why most people resort to hiring social security disability attorneys. Among the reasons the insurer might deem it wise to deny your claim include: 

  • Late filing – There’s a timeline within which you can, as a self-employed individual, file for your disability claim. 
  • Contractual reasons – Any information excluded from the agreement can be all that it takes to give the insurance reason to deny your claim. 
  • Insufficient evidence to prove disability – When filing for disability benefits, you must provide the insurance with evidence to support your claim. This might involve going for blood tests, X-rays, or a conclusive doctor’s report. You might also be required to go for a medical assessment test. The reason to have such strict requirements has to be because of the many scams posed to insurance companies.

How Expensive Is It To Apply For Disability Insurance?

It all depends on the type of coverage you wish to apply for and the insurance company in question. It’s for this reason that you should take the time to shop for the best coverage options.

For the self-employed, most insurance companies might require that you pay a third of your annual income. 

It’s never a bad idea to be prepared for the worse. Just because you are self-employed doesn’t mean that there are no risks involved in your line of work.

Everything will fall on your shoulders in the eventuality that you can no longer work as a result of a work-related injury or a terminal illness. You want to ensure that your income as well as those you love are protected. 


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