Do I Need Long-Term Disability Insurance if I Run My Own Business?

Research shows that one in every four workers will become disabled before they reach retirement age. As an employee, this means that if you want to cover yourself for injuries that could put you out of work for more than two and a half years, you need to invest in both short-term and long-term disability insurance. Most people fail to include this in their monthly deductible because in most employment cases, you cover the cost of the premium 100 percent. Well, the situation becomes completely different when you are not employed but own your own business.

Business and disability

When you are running a small-scale business, it means that you are completely in charge of all the operations, profitability, and costs associated with running the business. Now think of a situation where you were diagnosed with a long-term illness, and it put you out of business for a year or two. Obviously, the profitability of the business would take a hit, and you would still have your regular expenses to deal with. If you do not have insurance, you will soon find your medical expenses eating into your savings and things could get really tough.

How much you get

When you pay your premiums regularly, you will be entitled to up to 60 percent of the amount of income that you get monthly for a period of up to two and a half years if you are out of work for that long. There are some plans that can pay you well into your retirement also. This is a great arrangement because it will pay for close to all of your regular bills. If you have a medical cover in place, you will not even have too much to worry about financially.

Elimination period

This insurance deals with the assumption that if you are disabled for a short period of time, you will be using your own income before the cover sets in. This is where a short-term disability cover comes in handy. Alternatively, you can use own savings till you start receiving the money.

Knowing about the options that you have in disability cover is the first step towards making your business future secure. Take time and look at the products available. This will protect your business from possible losses, safeguard your family from financial strain and make it easier to handle any disability which may come along the way.

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