Whether you’ve been dipping your toe into the pool of self-employment for a while now, side hustling before and after your day job, or you’ve recently jumped feet first into business-owner life, congratulations!
Building something from the ground up isn’t easy, however, you choose to do it. But, you’re making it work and starting to see the clients and cash rolling in.
Starting your own company is a big deal and not for the faint of heart. You’re suddenly wearing every hat under the sun—from sales to marketing to accounting. While it’s incredibly exciting to see your invoices paid and know that every single penny is owed to your hard work, what happens if you need to take time off for an illness or injury? When you’re in charge, there’s no financial safety net to support you if the worst should happen.
We promise we’re not trying to scare you. But when one in four people will be forced to stop work due to a wellness issue, it’s important to think practically about what this could mean for your business. Thankfully, there’s plenty that you can do right now to prepare yourself and protect your future income—and that starts with disability insurance.
Before you start to think that it’s just one more thing to add to your never-ending to-do list, we’re here to show you how quick and simple it can be. We’ll walk you through how to look for long term disability insurance quotes, the most important policy points you need to know when comparing providers, and how to start your application in no time at all so that you can get back to doing what you do best: running your business.
What is disability insurance?
So what is disability insurance? It’s a type of insurance policy that provides you with a payout to replace your lost income if you’re not able to do your normal job due to a health or wellness issue.
Typically, disability insurance is broken down into two categories: long term and short term. What type of policy you take out will depend on what you need to be covered. Short term is best for temporary illnesses or wellness conditions, like maternity leave and pregnancy costs or surgery that may take a couple of months to recover from. Long-term policies are usually for health issues that have the potential to span many months or years, or even permanent disabilities.
With long term disability insurance, you’ll be covered as soon as your application is accepted and you can make a claim at any point during the term of your policy. If you find yourself facing an unanticipated medical situation, your insurance will provide you with a set amount of cash (paid out monthly, quarterly, or annually) that you can use for all of your essential living costs.
Whether it’s bills that need paying, groceries to feed your family, ongoing business expenses, or even wellness tools to speed up your recovery, there are no questions asked about how you spend those funds. Ultimately, your disability insurance is there to support you and your dependents if you’re not able to earn an income as a result of your health or wellness condition.
What you should look for in disability quotes
Now that you have a better idea of what disability insurance is and how it can help you, it’s time to start shopping around for quotes.
As a business owner, you know how important it is to do your research to make sure that you’re spending your hard-earned money wisely. Especially when you’re buying disability online, understanding all of the different aspects of a policy will help you to compare plans and providers to find the right one for your situation. Here’s what to consider.
The number one question that everyone wants to know: “How much is this all going to cost me?” Generally speaking, you should budget around 1-6% of your annual income to pay your insurance premiums. Many providers offer discounts if you pay annually rather than monthly, so that’s something to look for when comparing plans.
The overall cost will depend on different factors, like how old you are, the type of work you do, how healthy your lifestyle is, and if you have any pre-existing conditions (we’ll touch on that in a minute). But the good news is that, since you’re paying for your insurance using post-tax income, you won’t be charged any tax on your premiums. Plus, any money that you’re paid out if you make a claim is also tax-free.
You may also be wondering if you can expense these premiums since you own a business and any payouts are to replace your business income. In most cases, you won’t be able to expense your insurance since it’s paid for with after-tax dollars, but there are certain types of policies like business overhead expense (BOE) insurance that can be.
There are also optional extras that you can add to your policy like student loan repayment riders or cost of living adjustments (COLAs). While your premiums will be slightly more, those additional funds could be incredibly helpful should you ever need to make a claim. Particularly if you have significant loan debt, that extra money will be sent directly to your loan company, meaning that any other payouts you receive can be used for something else.
As with any other type of insurance you might have personally or for your business, you should be looking at exactly how much you’ll receive as a payout if you need to make a claim.
Even if you take out multiple policies, you’ll never be able to cover more than 60-80% of your after-tax income. That’s why we’d always recommend having some rainy-day savings tucked away to supplement any money you may receive from your insurance.
When you’re looking at long term disability insurance quotes, understanding the different waiting periods of each provider is crucial.
This is the amount of time between when your illness or injury first starts to when you’ll begin to receive your payouts. That can be anywhere from a few weeks to a few months, during which time you’ll be responsible for finding other income to support yourself.
Pre-existing conditions or exclusions
If you already have an existing health or wellness condition before you take out your policy, there’s a good chance that any medical issues associated with that won’t be covered.
Most policies will cover similar illnesses like cancer, diabetes, heart conditions, mental health issues, and fractures or sprains. But each provider defines “disability” differently, so make sure you read the fine print on your disability quotes to compare like-for-like.
How to get an online disability insurance quote
Not all insurance providers are best equipped to handle claims from self-employed individuals or freelancers. That’s why looking for quotes online with companies who specialize in working with entrepreneurs can often give you more affordable rates and a much faster application process.
You’ll start by filling out an online application where you’ll be asked a few questions about your background, health, work, and lifestyle. At Asteya, we offer no-exam disability income insurance. That means no doctor examinations and no bloodwork before your policy begins.
We base our pricing and coverage on your application's answers without any medical underwriting (a lengthy process that determines how risky of an applicant you are). This isn’t just for the young and healthy—if you have pre-existing conditions and are usually rejected from other providers, we can help.
Once you have your quote, you can compare this to any other quotes you’ve received and make the best decision for you. We’ll be here to answer any questions you might have about the policy before you sign on the dotted line and ensure that you’re covered as soon as possible. With a quick and easy online application, your future earnings can be protected in no time.
Build a stress-free future with protected income
One of the smartest moves that you can make as a business owner with unpredictable income is to put plans in place to safeguard your money. Especially if you have a family that relies on your income, taking out a disability insurance policy could mean the difference between financial peace of mind and long-lasting hardship.
You’ve put your heart and soul into creating the life of your dreams, so don’t let an unexpected medical issue be what gets in your way.
Check out Asteya today to start your application and get a commitment-free disability quote in minutes.