Overlooked Self-Employed Insurance

Overlooked Self-Employed Insurance

When you pulled the trigger and decided to “free” yourself from working for someone and became a freelancer, you probably felt this sense of power.  You can now make the decisions and do the kind of work YOU want to do!  Being a freelancer has many perks; flexibility, opportunities, independence, control, TAX deductions (yay!), and overall freedom!

However, the major downside to freelancing is losing ALL the security benefits that your employer provided in the past. We all know that we need health insurance and that is usually the first thing you would purchase when you “free” yourself.  After getting sick from the sight of their monthly bill for health insurance, many new entrepreneurs stop there.

Life and Disability Insurance are thus easily forgotten as a freelancer, with your “living” benefit being next on the list!

Disability Insurance replaces your monthly income in case you are unable to work.  Ironically, it is the most overlooked but MOST used insurance. After the crazy COVID years, I think we can all agree that anything can happen, especially to our health.  Car accidents, work accidents, ANY accident, cancer, surgeries, carpal tunnel, herniated discs, concussions, and the list goes on and on.

Think about what YOU would do if you couldn’t work.

How would you pay for your home, car, food, bills, etc.  It is a scary thought, and it could change your financial world quickly if you are not insured or prepared.

Here are some interesting stats and facts about Disability Insurance:

• A 35-year-old has a 50% chance of becoming disabled for a 90-day period or longer before age 65
• Almost 90% of long-term disability claims are caused by illnesses, not accidents and aren’t work related
• Average long-term disability claims for group members last 34.6 months.
• 51 million working adults in the U.S. are without disability insurance.
• Americans are 5 times more likely to become disabled than die but they are more financially prepared for death.
• The top 3 reasons for Long-term Disability Claims are Musculoskeletal disorders (29%), Cancer (15%) and Pregnancy (9.4%)
• More than 375,000 Americans become totally disabled every year.

Disability Insurance is based on your current age and health.  It gets more expensive as you get older and it gets harder to obtain it as your health declines. It can also play a role in tax planning strategies to mitigate your tax debt.

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