Health Insurance 7
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Do I need to get disability insurance?
Long-term disability insurance is often overlooked because it is expensive and because no one likes to think about the possibility of becoming disabled. Nevertheless, if you should be unable to work for a long period of time due to accident or illness, you would have long-term living expenses. Long-term disability insurance can help cover those needs.
How much disability insurance do I need? Enough to replace all my salary?
Usually people get disability insurance to cover 50 to 65 percent of their salary. Insurance companies usually will not give you coverage for your full salary since they feel a greater percentage would be a disincentive to rehabilitation.
What should I look for in a disability policy?
Look at what the policy pays, when it pays (how long the waiting period is, how long you would continue to receive benefits), and look at the policy definition of disability. Some policies will pay if you are unable to work in any occupation; others pay if you are unable to work in the trade or occupation you were pursuing when you were disabled. A policy that pays if you can't work in your own trade or occupation would be best.
Isn't it difficult for homebased business owners to get disability insurance?
If you are just starting out in your own business, it might be difficult to get adequate disability insurance, since the amount a policy will pay is based on your previous earnings.
Is there any other insurance I might need?
If you don't have life insurance, you should look into getting a simple term or low-cost universal life policy. Other insurance you may need will depend on your individual circumstances. A good insurance broker who is familiar with the needs of businesspeople and your type of business can help you identify potential risks. You may find it beneficial to deal with two insurance brokers, one for health and life insurance and one for property/casualty insurance. Once you know the risks, you will have to assess the potentials for financial loss to determine what types of insurance protection to buy.
Useful Web Sites
http://www.ehealthinsurance.com
Compare costs for many different types of policies, see doctor lists and policy details. You can even apply online. (Not available for all states.)
http://www.netquote.com/
Quote comparisons for life, health, and business insurance.
http://www.healthinsurance.org
Offers information and quotes. Targets small businesses families, individuals and the self-employed.
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