Self Employed Disability Insurance
If you are self employed disability insurance is critical. Every small business owner is the key factor in the success of the business. If you became disabled for a long period of time it could financially devastate you. Disability Insurance for self employed individuals ensures that an income comes in on a monthly basis if a long term disability occurs. What to look for in disability insurance policy for a self employed individual? - Coverage for illness AND injury
- Exclusions – look for the policy with the least exclusions
- Elimination Period – make sure that you are comfortable with how long it will take for benefits to start if you are disabled.
- Benefit Period – How long do you want benefits for in the event of a long term disability? To retirement age is ideal.
- Definition of Disability – look for own occupation coverage. “Any occupation” is least favourable
- Non cancellable coverage is best – the insurer can not cancel your coverage (except for non payment)
- Guaranteed Renewable – if the policy must be renewed on a regular basis it is best to have the terms of renewal Guaranteed
- Cost of Living Adjustment Rider – keep up with inflation
- Future Income Option – as your income goes up you can increase your coverage regardless of health
As you can see by this summary of coverage - disability insurance can be tricky. It is a very good idea to work with an insurance broker who can help you to shop the market. If your business is brand new you may not be able to get all of the features mentioned above. That’s okay, it is important to have some coverage in force. You can always upgrade as your income and business stability increases. Go to Disability Insurance Canada for similar information. Note: Keep in mind that insurance licensing, legislation, and policies often vary by province and most certainly by country. Canada Insurance Source is a free information source. So use this site to gain a general understanding of insurance with your own area and situation in mind. This insurance information is general in nature and the policy wordings always take precedence. Make sure you review the "please read" page. |
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