As a self-employed worker you can create a lot more options for improving your earning potential while also enjoying a more flexible schedule. However, you are still susceptible to injuries which can prevent you from working and earning a regular income.
Being self-employed also means that you do not have access to the health benefits provided by an employer if you fall ill or injure yourself. In this regard, short-term disability insurance may be even more important for self-employed individuals.
Self-employed Short-Term Disability Cost
All self-employed people are going to be operating under different conditions and risks, so there is no one-size fits all pricing solution. However, a baseline figure of about an hour’s wage per week will give you a rough budget from which to work.
Insurance premiums take a lot of factors into account before arriving at cost so your best bet is to contact an agent or broker who can provide you with the best value.
Policy Features on Self-Employed Short-Term Disability Insurance
Choosing to include or exclude various features of your policy will influence the price a great deal.
Here are a few of the features which will most dramatically affect your monthly premiums:
1. Elimination Period – This is the time it will take from when you first become disabled to when the policy will kick in. Shorter elimination periods such as accident cover starting at zero days, and sickness payments kicking in after 7-days will cost more than a prolonged period of 90-days.
If you can support yourself for 3-months, then you can save a lot on your yearly premium costs.
2. Benefit Amount – Of course, higher payouts will attract a more substantial premium. Calculating the bare minimum monthly payment you require to live will prevent you from paying for unnecessary cover.
3. Benefit Period – Covers the amount of time you will be receiving payments. Naturally, a shorter period of 3-months will cost a lot less than a policy which pays out for 24-months.
Occupational Hazards
The industry in which you work will play a large part in determining your policy cost. Every occupation has a different risk profile, and your insurance provider will rate you accordingly.
Occupations are awarded a letter rating, with A being the lowest, and D the highest.
A few examples of occupations and their level of risk – Accountants, lawyers, and financial planners could be grouped into an A classification. Drivers, mechanics, and caterers might rate as C, and welders, nannies, and bus drivers will fit a D classification.
Talk to your insurance broker about your insurance requirements, and they will be better able to present you with policies which can provide you with relevant cover at a fair price
Here’s What To Do Now…
Are you concerned about having to pay a high premium for short term disability because you are self employed and not on a large company plan?
eSupplmental.com offers affordable short term disability insurance policies for self employed individuals.
They have the ability to shop around to different insurance providers to find you the best policies and premiums, for which you do not have to pay anything extra for.
Click here to contact us today and compare all of your options so that you can make an informed decision.
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