We often associate insurance plans with conventional employment.
You are, therefore, likely to be confused about the type of insurance that makes sense to you as a freelancer.
Being a freelancer means working on your own time based on your schedule and preferences. This reduces the stress from work compared to the traditional employee.
However, you still face many risks.
Ever thought about what could happen in case you were sidelined for long or unable to work entirely due to injury?
Maybe you already have a personal emergency fund! But that can also run out when bills pile up, and you cannot work anymore.
This post emphasizes why it is essential for you as a freelancer to get disability insurance to secure both yourself and your family financially.
- Risks always come knocking
Whether you are a freelancer, journalist, or mechanic, the possibility of getting injured is always there.
Some careers may be safer than others, but the risks aren’t entirely removed. Working as an accountant, for instance, might seem to have fewer risks than a mechanic dealing with sharp and crude metals. But even accountants are exposed to the surroundings where accidents can happen at any time.
The risks of getting injured are there for freelancers, whether in a mall, driving around, cooking in the kitchen, or attending a concert. Apart from injuries, you can also get sick or be infected while working from the comfort of your home office.
What is important is how well you are prepared for the unknown.
Getting disability insurance cover for a self-employed person is the best step to securing yourself and your family when an injury or sickness attacks your physical and financial capabilities.
- It’s Easy
Insurance agents are always willing to guide you through disability insurance coverage.
Finding an agent who understands freelance work and its risks won’t take you much effort.
All you have to do is correctly disclose your income because the monthly benefit will be calculated based on what you earn.
The agent will then take you through all the documentation and purchasing processes.
You may be thinking, why not just stick to the Social Security Disability. With disability insurance, you face no risks of benefits being denied or being forced to hire a lawyer who will charge you more money to try and get your benefits.
- You can afford it
It’s so cheap you cannot afford not to buy it.
Depending on your occupation, disability insurance can cost you as less as 1% of your income.
A bookkeeper will certainly have a cheaper premium to pay compared to a mechanic.
The Freelancer’s Union provides a good tip when selecting a disability insurance policy. The trick is to look for a cover that is 50% of your monthly income. If you earn $72K profit per year, it’s best to go for a cover that guarantees you at least $3,000 monthly benefit.
Depending on your age and health, you may end up paying as low as $20 or as high as $300.
Considering the age and occupational risks, these values are affordable to freelancers seeking safety from the financial devastation of a serious injury or illness.
- A Choice on the Cover You Want
There are key clauses in disability insurance that ensure you get what you want or, most importantly, what works for you.
You can consider either “own occupation” or “residual disability” coverage.
- Own Occupation Clause.
This clause works for you if you become unable to work in your current position and occupation.
This cover is best applicable if you are earning a high salary from your current occupation that cannot be easily replicated elsewhere.
Or for freelance writers who get diagnosed with nerve conditions that make it impossible to type.
- Residual Disability
Residual disability covers a disability that does not completely prevent you from working. Say you previously worked for 8 hours, and after Chemotherapy, you are too exhausted and can only afford 3 hours of work.
Depending on what you are comfortable with, you can easily switch up your occupation clause to get the cover you need. This might attract higher premiums, but you will certainly be taken care of during the challenging times.
Conclusion
When you face short or long-term disability, your bills continue running.
Eventually, the bills will outrun your savings. Your social security disability benefits might also be declined.
Having disability insurance is the best way to deal with the financial and emotional risks after an injury. You can opt for a residual or occupation clause that guarantees a monthly check that can take care of you and the family.
