Why Disability Insurance is Crucial for the Self-Employed

August 13th, 2014 → 3:16 pm @ MacDev Financial Group| Stephen Devlin // No Comments

Many of my self-employed friends quip that they don’t get sick days. Paid time off is something they left behind with the cubicle. But, as much as they may joke around, they still get sick. And, sometimes, more frequently than anyone wants to consider, they suffer injuries that make work painful or impossible. This is why disability insurance, one of the most misunderstood and overlooked insurances, is crucial for self-employed workers.

More people suffer long-term disabilities than die prematurely. That’s a fact. And if your business supports you and your family, you may want to do the math to answer this question:

Would you family be financially okay if you died prematurely, or suffered a long-term disability?

If you have life insurance, but not disability insurance, there’s your answer.

Statistics on disabilities suffered during prime working years are staggering:

• A typical female non-smoker, age 35, with a healthy body weight and healthy lifestyle has a 24% chance of becoming disabled for 3 months or longer during her career.
• A slightly overweight female who smokes has a 41% chance of becoming disabled for 3 months or longer.
• A typical healthy male’s chances of becoming disabled for at least 3 months is 21%, with the average disability lasting seven years.
• An overweight male who smokes has an increased risk of disability of 45%.

 

This is Why You Need to Set Up a Self-Employed Benefits Package

Just the like any good boss, you have to take care of your employee: You. Consider it part of the cost of doing business. If you’re young and healthy, then at minimum you’ll need disability insurance, life insurance, and critical illness insurance.

If you’re not getting sick days now, then what will you do when you need a longer period for recovery? It’s time to have a word with your boss about your self-employed benefits, even if it means talking to yourself.

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