What is Self-Employed Disability Insurance?

Diane Goettel
Diane Goettel
A self-employed woman can take time off for maternity leave with self-employed disability insurance.
A self-employed woman can take time off for maternity leave with self-employed disability insurance.

Self-employed disability insurance covers individuals who work for themselves in the event that they become disabled and not capable of continuing to provide for themselves. There are two kinds of self-employed disability insurance. One is for long-term disability and the other is for short-term disability. It is more common for people who are self-employed to register for long-term self-employed disability insurance and, for that reason, this kind of insurance is more common and easier to find. There is also short-term self-employed disability insurance for pregnancy, which can be used by women.

Self-employed disability insurance can help people take an extended break off work following an injury.
Self-employed disability insurance can help people take an extended break off work following an injury.

Long-term self-employment disability insurance is meant to cover people who are self employed in the event that they are unable to work for a significant period of time. This kind of insurance may also cover people who are rendered unable to work for the rest of their lives. In the event that a person with this kind of insurance becomes disabled, his insurance company will compensate him based on his salary. Depending on the wording of the insurance policy, the insured person may be eligible to receive 100 percent of his salary or just a portion of his salary.

Self-employed disability insurance might help pay for medical costs associated with recovery from an injury.
Self-employed disability insurance might help pay for medical costs associated with recovery from an injury.

Short-term self-employed disability insurance is meant to cover people who are unable to work for shorter periods of time. If, for example, a freelance illustrator sprained his wrist, he might not be able to work for a week or so while recovering from the injury. During this week, he would stand to lose income.

A woman who is self employed may choose to purchase self-employed disability insurance for pregnancy. This is a way for a woman who is self employed to experience the benefits of maternity leave without being employed by a company that offers this specific benefit. This kind of self-employed disability insurance gives a woman time to recover from labor and spend some time bonding with her new baby before returning to work.

Short-term self-employed disability insurance may cover a freelance illustrator who is suddenly unable to work due to a sprained wrist.
Short-term self-employed disability insurance may cover a freelance illustrator who is suddenly unable to work due to a sprained wrist.

In order to apply for any kind of self-employed disability insurance, a self employed individual will have to establish his salary. This salary will determine how much the insurance company will pay him in the event that he becomes unable to work. It is common for people who are self employed to experience more fluctuation in their salaries than people who are employed by company or corporation. This means that people who hold this kind of insurance may have to update it on a regular basis in order to account for changes in their income.

Diane Goettel
Diane Goettel

In addition to her work as a freelance writer for , Diane is the executive editor of Black Lawrence Press, an independent publishing company based in upstate New York. She has also edited several anthologies, the e-newsletter Sapling, and The Adirondack Review. Diane has a B.A. from Sarah Lawrence College and an M.A. from Brooklyn College.

Diane Goettel
Diane Goettel

In addition to her work as a freelance writer for , Diane is the executive editor of Black Lawrence Press, an independent publishing company based in upstate New York. She has also edited several anthologies, the e-newsletter Sapling, and The Adirondack Review. Diane has a B.A. from Sarah Lawrence College and an M.A. from Brooklyn College.

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    • A self-employed woman can take time off for maternity leave with self-employed disability insurance.
      By: MaxRiesgo
      A self-employed woman can take time off for maternity leave with self-employed disability insurance.
    • Self-employed disability insurance can help people take an extended break off work following an injury.
      By: imageegami
      Self-employed disability insurance can help people take an extended break off work following an injury.
    • Self-employed disability insurance might help pay for medical costs associated with recovery from an injury.
      By: Alison Bowden
      Self-employed disability insurance might help pay for medical costs associated with recovery from an injury.
    • Short-term self-employed disability insurance may cover a freelance illustrator who is suddenly unable to work due to a sprained wrist.
      By: iceteastock
      Short-term self-employed disability insurance may cover a freelance illustrator who is suddenly unable to work due to a sprained wrist.