subject: Self- Employed: Do I Really Need Long-term Disability Insurance? [print this page] Do you own your own business or work for yourself? If you do, you know that being self-employed comes with its own hurdles; one of the most important is obtaining life and health insurance since you are not covered by an employer. But how do you know which insurance to purchase? How do you know what insurance product best protects your assets? For example, if you are self-employed, do you need long-term disability insurance? The answer should be - and is - simple. Yes!
Firstly, what is long-term disability insurance? Long-term disability insurance provides coverage to you if you find yourself in a position where you are unable to work. Any number of things can leave you disabled, or in a position where you are unable to work. If you are hurt and cannot return to work right away, how are you going to maintain the lifestyle you enjoyed before?
Through monthly payouts, a long-term disability insurance policy provides you with an income replacement (the amount of which depends on how much you want to be covered for and is determined when your policy if first purchased). With this money you can be sure that you are able to continue paying the bills that keep a roof over your family's heads and as well as maintaining your business.
What is covered by long-term disability insurance - how does it work? By sitting down with an insurance broker and customizing a plan to fit your needs, you are able to select such options as the monthly payout that best fits your budget and the length of time that you will be covered. If you are a self-employed individual this is crucial, as, unlike those people that have employer coverage, you may need your insurance policy to begin sooner and cover you for a longer period of time. Each plan determines what is covered, and so it is essential to work with an insurance broker to find out what you feel best suits your current financial situation.
Can you afford the consequences of a disability without coverage? Paying your mortgage, saving for retirement, or putting money towards your child's education is only possible if you are receiving an income. If you review your finances, and find, as the majority of people would, that you need your monthly income to support your bills, clearly long-term disability insurance is important. Perhaps you would be able to support yourself and your family for a short period of time, but if the period turns out to be much longer, then you need to consider the importance of obtaining long-term disability insurance.
Deciding what type of insurance policy best suits your needs as a self-employed individual can be tough. Often individuals incorrectly assume that a life insurance policy offers enough coverage to protect their family - but that is only in the event of a death. If you are self-employed, it is crucial, in order to protect your loved ones, to obtain long-term disability insurance.
by: Gary Mandel
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