What are the Benefits of Disability Insurance?

If you are self-employed, disabled and unable to work, disability insurance is a safety net that can help you maintain your quality of life. The policies benefit replaces income if you are temporarily unable to work due to an illness, injury or disability. It also provides additional benefits not typically included in basic health insurance plans.


What Does a Policy Cover?

Side view of elderly man sitting on wheelchair looking at life insurance contract form

It’s always a good idea to have a little extra income on the side in case of an emergency. It’s even better to have disability insurance (DI). This type of insurance can help you and your family if something unfortunate happens to you or someone close to you. In cases of injury,

illness, accidents, or any other calamity, your insurance policy can help pay for medical care and other expenses with provision for loss of income.


How Much Do Policies Cost?

A premium can range from between 1 to 9% of your annual salary. This depends on several factors, including your age and health. Life insurers will consider the following when determining your premium: Your length of coverage you want. The amount of coverage you need the insurance for—your occupation or other factors that affect your risk of disability.


Are There Any Exclusions for Disability Insurance?

A pre-existing condition clause in your long term insurance policy will limit your benefits if you have had a known and treated medical condition before applying. Two time periods are used by most insurance companies when defining a pre-existing condition: a “look-back period” and a “waiting period.



Disability insurance can be an important tool for small business owners. We all hope we never have to use it, but a DI policy is something all small business owners should consider purchasing. It’s a financial safety net for both you and your family if something happens to you and you’re no longer able to work.