There is no denying that being your own boss has its perks. But if you are also the primary earning member of your family, then it means a lot of responsibilities. One of your prime duties is to safeguard your family financially in case of an emergency. Accidents come unannounced and can result in a disability. So, getting a disability term insurance policy is a sound plan.
Benefits of disability term life insurance for a self-employed individual
Before getting into the basics of choosing the right disability term insurance for a self-employed individual, here’s outlining a few benefits of the same:
The disability of the primary breadwinner of the family can financially impact the family. Apart from the money spent on taking care of the individual, the family has to handle the day-to-day expenses as well. A disability insurance policy can really come in handy in this situation.
A replacement income source
Suffering from a disability means the person will not be able to start working for at least some time. It puts a lot of financial pressure on the family. With a disability term plan, they have at least a way to replace that income source.
Focusing on recovery
When a person is facing the pain and stress of sudden disability, the last thing they should be worrying about is the finances. The added stress and anxiety of constant worrying will only delay their recovery. If they have disability insurance, then they can focus on their recovery instead of stressing over arranging the necessary funds.
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Enjoying tax benefits
As per the income tax laws, you can get major tax benefits on term insurance plans. It is really helpful when you are trying to find ways to save up on taxes.
Selecting the right disability insurance
Now that you are ready to get the disability insurance, let’s show you how to choose the right one:
Choose the right coverage
You can get a pretty good sum assured under disability term life insurance even as a self-employed individual. However, it will depend on your age and annual income. After all, the insurer will set the premiums accordingly, and they need to ensure that you have the capacity to pay the premiums without defaulting. So, discuss with your insurer the right coverage.
Read the policy documents
So, you have a general idea about the policy but do not just rely on that. Read the policy document carefully before investing in disability term insurance. Make sure you understand all the terms and conditions stated there. If you don’t understand something or have doubts, then get in touch with the insurer before signing.
Analyze what the plan covers
Simply because it is a disability insurance plan, don’t assume that it will cover all kinds of disabilities or all the costs. You need something that offers the widest ranging coverage. At the same time, it needs to come with affordable premiums. Compare a few policies to get an idea. It is better to have a disability insurance policy with comprehensive coverage than one with limited coverage. Though the former will have higher premiums, it is more useful in the long run.
That’s it! Go ahead and discuss your term policy needs with your insurer for more details.
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