The life of a freelancer can be very exciting and fulfilling. You don’t have a time clock to punch, there’s no supervisor to answer to, the potential to grow your business is seemingly unlimited, and your income potential is exciting.
But, like anything else in the business world, freelancing has its drawbacks. Chief among them, for many freelancers, is not having group health, life, and disability insurance benefits available. It falls on the freelancer’s shoulders to search out good, affordable insurance coverage, which is no easy task.
As a freelancer, you may be concerned about having health insurance to pay doctors and hospitals if you needed medical attention. You have no doubt read about the skyrocketing prices for health care, and you purchase health insurance to pay your medical bills to protect yourself from a financial disaster.
Most freelancers protect their bodies and checking account with health insurance, but don’t protect their income with long-term disability insurance coverage. It makes good sense for you to make sure your healthcare providers get paid when you’re sick or injured, but how are you going to get paid if you can’t work for a prolonged period of time because of a serious illness or injury?
Buying life insurance to protect your family financially when you die is a smart, responsible move. In fact, over half of adult Americans have purchased life insurance coverage. But, according to the Social Security Administration (SSA), the probability of dying before retirement age for a 20-year-old is 13 percent, while the likelihood of becoming disabled is 25 percent. You’re about twice as likely to become disabled during your working life as you are to die.
Most of us can’t see ourselves laid up in a hospital bed for a prolonged period of time because of a serious illness, or we can’t picture ourselves convalescing at home for weeks because of a severe injury. Unfortunately, none of us are immune from the potential for a serious medical event that can keep us from earning our freelance income.
If you became disabled tomorrow and you had no longer had an income, what would you do? That is a very unnerving question for a high percentage of people. Still, for freelancers whose income is totally dependent upon their ability to work and earn an income, it’s a question that needs to be considered.
As a freelancer, the options to replace your income if you become disabled include:
This last option is clearly the most effective way for you to fortify your financial safety net against serious injuries and illnesses. But how exactly does long-term disability insurance work?
As a freelancer, your best bet for getting long-term disability insurance coverage is to buy an individual policy. The younger and healthier you are, the lower your premium rates will be. That’s why it makes good financial sense to put a policy in place early on in your career and adjust your coverage as your needs change.
First, you will want to compare long-term disability quotes to evaluate your needs. Once you find a plan that works for you, submit your application online. If you are approved for coverage, now all you have to do is pay your premiums to keep your income safe and sound.
When you buy long-term disability insurance, your carrier is obligated to pay you the monthly benefit amount selected on your policy if you experience a covered disability. Because your premiums are paid with after-tax dollars, any benefits you receive will be treated as tax-free income that is paid directly to you. This means
In addition to your benefit amount, there are two key decisions you need to make: when benefits will start paying out and how long benefits will last.
It’s important to note that your job occupation will also impact the cost of your disability insurance policy.
Protecting what you earn requires you to be proactive by putting a policy in place when you are healthy and working, rather than waiting until something bad happens.
To evaluate your income protection needs, there’s Breeze, the easy way to buy disability insurance online.
Not only will you be able to enjoy your freelance career with greater financial security, but it also might be the easiest thing you do today.
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