When people are shopping around for disability insurance, typically they classify themselves with a specific occupation. But what if you are an entreprenuer?
Applying as an entrepreneuer can be a lot more tricky. Companies like to check a box such as an accountant, attorney, executive, etc…
Here are some tips for entrepreneurs looking to protect their income with disability insurance:
1) Clarify with the company your job activities. Are you working in an office? Do you travel? How many hours a week do you work? What is your educational background? All of these factors will come into play when the company decides how to classify you in an occupational class to determine how much premium to charge.
2) How long have you been working as an entreprenuer? If you are just starting and don’t have a track record for at least 1 year, you will need to wait until you have established a working and income pattern.
3) How much earned income did you receive last calendar year? When applying for disability insurance, you will need to verify earned income. If your income is all passive or set up in stock options, it will be difficult to obtain coverage. Companies need to see that you have been in business at least one year and have a pattern of income to insure.
The best advice is to work with an experienced broker to help you navigate the various options and to help you determine and find the most suitable policy for your needs.