What You Need to Know about Disability Insurance when You are Self-Employed: Disability Insurance: Essential for freelancers, sole proprietors, and business owners to protect against loss of income due to illness or injury. Types of Coverage: Short term disability insurance (STD) for temporary income protection and long term-disability insurance (LTD) for more extended periods. Policy Details: Policies define premiums, benefits, benefit periods, waiting periods, and the definition of disability. Business Overhead Expense Insurance: Covers ongoing business expenses like rent and salaries if you’re unable to work. Coverage Needs: Typically, personal income coverage is up to 80%, and business expenses can be covered up to 100%. Cost of Coverage: Premiums can range from 1% to 3% of annual income, influenced by factors like age, gender, and occupation. Policy Types: Non-cancellable and guaranteed renewable policies offer stable premiums and benefits, while conditionally renewable policies may change over time. Remember, it’s important to consult with a financial professional to tailor a policy that fits your personal and business needs.
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