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Solopreneur Money

May 24, 2021

Welcome back to the latest episode in the Financial Planning Basics series. In this series, you’ll find tips, tricks, and stories to help you master your finances so that you can live the life you want. 

In this episode, you’ll learn about disability income insurance for solopreneurs. Did you even know that this valuable insurance was available to you as a solopreneur? Today you’ll hear a story to help you understand the importance of this essential insurance product. Listen in to learn why preparing for the worst can help you in your time of greatest need.

You will want to hear this episode if you are interested in...

  • A story about Elaine and Lloyd [2:12]
  • Things to consider when getting disability income insurance [5:16]

The story of Elaine and Lloyd

I had some clients recently who discovered terrible news. Elaine was diagnosed with advanced cancer, so her husband Lloyd reached out to me to see where they stood financially. After several weeks of talking to doctors and taking tests, Elaine learned that the way to save her life was by having a life-altering surgery that would leave her disabled and unable to perform her job. Listen in to hear how their story ends. 

Disability income insurance is important to have

Disability income insurance may be the one insurance product that you think is unnecessary but I urge you to err on the side of caution and not forgo it. Just like all insurance, you won’t appreciate it until you really need it. Have you accounted for the threat of a disabling event with your business and family? What will you do if the worst happens?

What a solopreneur needs to consider to get disability income insurance

Most people get their disability income insurance through their employer, but as a solopreneur, you’ll need to contract it yourself. There are differences between signing up for employer-sponsored disability insurance and enlisting your own as an independent contractor. You’ll need to provide a few years of tax returns to the insurance company so that they know your income. The most important piece of information is that you’ll need a definition of disability for your occupation. The definition of disability details the material substantial duties of your occupation that you would be unable to perform if you were disabled. 

There’s no doubt that becoming disabled would be a tragic thing to happen to anyone, but make sure to listen in to hear how you could make the best of the situation and use disability insurance to your advantage. 

The right financial advisor can help you

If you haven’t obtained disability income insurance, discuss it with your financial advisor to see how they can help. If you don’t already have a financial advisor you can head over to my website to schedule a consultation to see if we would be compatible. Preparing for the worst can be overwhelming but with a trusted advisor guiding you through you’ll gain peace of mind knowing that you are prepared for any eventuality.

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