Being your own boss will prove to be very fun and exciting. Nevertheless, being self-employed comes with a lot of responsibilities. Since you don’t have a conventional boss, you’ll have to handle everything on your own. One of the most difficult aspects of being self-employed is the risk of getting injured or hurt. If that happens, you’ll find yourself in a frightening situation. You need to make sure that you can protect your Canadian business in this scenario.
Insurance for self-employed individuals can be confusing but there is assistance out there. Since you’re self-employed, you need to learn more about the insurance products available to you.
As a self-employed individual, you’re going to have a lot of concerns about insurance. If you need assistance, you may want to speak with a lawyer since they can help you get the answers you need. Being a conventional employer is much easier. After all, you’ll receive insurance from your boss and you won’t have to worry about it unless you want a private plan. If you haven’t thought about obtaining disability insurance, you should. It will provide you with immense benefits and greater peace of mind.
The Risks Self-Employed Canadians Face
As a self-employed Canadian, you face greater risks than conventional works. For instance, you are responsible for almost every aspect of your business. If you are forced to stay home due to an illness or injury, you’re not going to make any money. You might be able to hire someone to help but that will likely be too expensive for many. Your income will drop to nothing and you’ll find yourself in a bad situation. If you cannot work for several months, you may have to file for bankruptcy. Furthermore, you may not be able to pay your mortgage.
To prevent this from happening, you should think about acquiring disability insurance. This type of insurance will be very comforting for self-employed professionals in Canada since it gives them greater peace of mind. Furthermore, it can help you make it through a tumultuous time. More about the benefits of disability insurance for self-employed Canadians can be found below.
The Importance Of Disability Insurance
Canadians never know when they’re going to experience an injury. Or, you may get sick within the next few days. Depending on the severity of the illness or injury, there is a risk that you will not be able to work. Statistics show that most people will have to take time off from work due to an illness or injury than dying in a freak accident. Dying from natural causes at a young age is less likely as well. Disability insurance can be very helpful since it offers income replacement when you’re disabled.
If you can prove that you can not return to work, the insurance will help you by providing payouts during the disability period.
How Much Will Be Covered?
Ultimately, the amount of coverage you’ll receive from a disability insurance policy depends on numerous factors. Your policy will likely differ from that of a friend or family member. Furthermore, you should know that there are many companies offering different policies. Before you can sign up for a disability insurance policy, you will likely be required to provide the insurer with information about your current income. This is the case because insurers usually do not allow Canadian consumers to purchase insurance that exceeds their current income. However, you may be able to purchase additional coverage at certain intervals.
With most private policies, you should be able to obtain more coverage. To do that, you will need to provide the company with recent information about your earnings. At this time, the company will evaluate your income and find out if you’re eligible for more disability insurance coverage.
Options For The Self-Employed
Since you’re self-employed, you’ll have to find an alternative. You don’t have a conventional employer so nobody is going to buy disability insurance for you. Instead, you will be required to purchase your own private policy. The number of self-employed individuals in Canada has climbed much higher in recent years. In 1976, it was said that Canada has 1.2 million self-employed workers. In 2018, the number comes to 2.9 million. Suffice to say, self-employed workers need protection too.
Getting a private disability insurance policy is very smart. With a private policy, you’ll be able to protect yourself from potential problems. In Canada, you’ll receive payment benefits after a certain waiting period. The waiting period will depend on the specific policy that you have. Conventional workers may be able to obtain a group disability policy from their employer. This depends on the size of the company and the number of people it employs.
In some cases, you could obtain coverage through an association. For instance, Canadian dentists may be able to get a policy through the Canadian Dental Association. This is a good way to minimize the costs and get the coverage you need.
What To Know Before Signing Up
Self-employed Canadians will have a lot of questions about signing up for a disability insurance policy. Since you’re purchasing a private disability insurance plan, you’ll likely spend more than you would with a group insurance policy. However, there are some benefits associated with a private plan. The type of coverage you get with a private plan will likely be more valuable since it will provide assistance when you’re not able to work in your regular occupation.
Recently, insurance companies have created policies saying that Canadians will not continue receiving whole benefits if they’re able to work in another occupation. If your income is decreased due to this change, you may be able to acquire partial or residual benefits. These benefits will depend on the hours you’re working and the amount you’re being paid.
Applying For Self-Employed Disability Insurance
Applying for disability insurance can be difficult. For self-employed workers, it is even harder. The process is more difficult than applying for group insurance since the employer will likely handle it for you. When applying, you need to be very thorough. It is pertinent to make sure that you answer all questions accurately and honestly. If you do not answer the questions accurately, you may be denied insurance. Alternatively, you may end up getting your policy voided for misrepresentation when you file a claim.
It is essential to prevent this from happening. With that being said, you need to be very cautious to make sure that the information is correct. Filing a claim can be daunting and it requires special care. Be sure to work carefully to ensure that you provide the insurance company with honest and truthful information so you can avoid problems in the future.
Types of Disability Insurance we offer
- Long-Term Disability Insurance (LTD)
- Short-Term Disability Insurance
- Key Person Disability Insurance
- Self Employed Disability Insurance
- Mortgage Disability Insurance
- Temporary Disability Insurance
- Supplemental Disability Insurance
Other Disability Insurance Resources that you can read
- Are Canadian Disability Insurance Premiums Tax-Deductible?
- Will My Long-Term Disability Income Be Taxable?
- Dealing With Elimination Periods For Short And Long-Term Disability Insurance
- Pregnancy And Disability Insurance
- Who Pays For Disability Insurance?
- Why Employers Offer Disability Insurance
- Maternity Leave And Disability Insurance Benefits
- How Long Do Long-Term Disability Benefits Pay?
- How Much Does Long-Term Disability Insurance Cost?
- Is Disability Insurance Worth It?
- How Much Disability Insurance Should I Get?
- What Does Disability Insurance Cover?
- What To Look For In Disability Insurance?
- Do I Need Disability Insurance After I Retire?
- Does Disability Insurance Cover Pre-Existing Conditions?
- How Does Disability Insurance Work?
- How Long Does Long Term Disability Insurance Pay?
- Is Wage Loss Insurance The Same As Short Term Disability?
- When Does Long Term Disability Insurance Start?
- Can You Buy Your Own Short Term Disability Insurance?
- Can You Get Disability Insurance If You Are Unemployed?
- Can I Buy My Own Short-Term Disability Insurance?
- Can You Get Individual Short Term Disability Insurance?
- Are Credit Cardholders Insured By Disability Insurance Plans?