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Considering Self-Employment? Consider Disability Insurance as Part of Your Plan

Taking the plunge into the world of self-employment due to an unexpected job loss or a desire to pursue your dreams can be exciting. In this article, we discuss considerations for coverage.

Taking the plunge into the world of self-employment due to an unexpected job loss or a desire to pursue your dreams can be exciting, nerve racking, and busy.


Leaving a traditional employer, which likely provided benefits that covered you in the event of a disability, means that you are exposed to significant risk if you are unable to work due to an illness or accident.


Obtaining disability insurance as a newly self-employed individual can be difficult. Insurance companies find it difficult to assess employment stability and income, and it is difficult to determine how successful you might be in the early years of self-employment.

  • Have you had prior experience or a related occupation?

  • Are you going to be working on a contract basis with a former employer or have you secured a long-term or renewable contract?

  • Do you have solid past employment history and earnings, and are you working in a skilled or professional occupation?

  • Do you have financial statements demonstrating that your business is profitable?

  • Are you going to be working in a full-time, on a year-round basis? Do you have employees, and are you going to be working outside of the home?

While your answer to any one of these questions does not necessarily preclude you from getting coverage, these factors influence whether a contract will be issued.


Some insurance companies offer established professionals a 20% discount on disability insurance. You must have earned at least $100,000 in the last two years and have at least three years of experience in your present occupation.


Who qualifies? Accountants, architects, medical specialists, engineers, executives, lawyers, and computer specialists.


Book a meeting if you would like to discuss your options for disability if you are already self-employed or considering taking the plunge.

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