Disability Insurance for Small Businesses & the Self-Employed

It is difficult for most people to think about what would happen to them and their families if they were injured and had to live with a disability.   Even worse, you cannot work now, and the risk of losing your job because of this sudden disability is very real. Without a stable paycheck, it would be extremely difficult to pay for the bills, putting you in an even worse situation. In order to avoid living this nightmare scenario, you may want to consider purchasing a disability insurance policy to help protect you and your family.  Here’s how your disability insurance will help you in case of unfortunate events.

Disability Insurance, what is it?

Disability insurance is a special kind of insurance policy that provides a temporary income for a worker if he or she cannot work for an extended period due to a disability. The exact definition of the word disability, as well as what injuries can actually constitute a disability, is wholly dependent on the organization which provides this service to you.   So you should definitely ask your insurance provider all the policy details regarding this definition.

What types of disability insurance are available?

Generally, there are two main types of disability insurance: short-term and long-term.

• Short-term disability insurance: this kind of insurance is typically for people with disabilities for three to six months. It mostly replaces from 60 to 70% of your base salary, and it will last from a few months to a year. You will have to wait for about two weeks, a period called the elimination period before you can receive your disability benefit.
• Long-term disability insurance: this is for those who cannot work for 6 months or more because of their disability. The benefit will only be about 40 to 60% of your base salary, but the benefit will end only when the disability ends. If it continues for a long period of time, it will end after a few years, or when you reach retirement age. Similar to short-term disability insurance, you will have to pass an elimination period before you can receive your disability benefit, but for long-term disability insurance, it’s 90 days instead.

Why should you sign up for disability insurance?

It seems very unlikely that you will be caught up with a disability, but the reality is that at least 1 in four 20-year-olds will take at least 90 or more days off due to a disability before they turn 67? Disability is much more likely than you think, and if you are not able to work, who will pay for your medical bills? For that reason, even if you are still young, getting disability insurance will not be a waste. Plus, some companies offer this kind of insurance at group prices, so finding affordable disability insurance may be less expensive than you think.

Even if the chance of you getting disability is quite unlikely, it’s always better to be prepared for anything. Disability insurance will ensure that you will still have a source of income even when you are not able to work which makes it a potentially wise investment. If you are looking to sign up for disability insurance now, look no further! Call us now for more information!