How to Make a Contractor’s Disability Insurance Policy Work for You
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Working as a contractor can be a dangerous profession. Because no matter how many precautions you take or how attentive to detail you may be there is always something that can go wrong. Some contractors may be more at risk than others but even a simple slip on the way to work in the morning can put you out of work for a long, long time. And if that time becomes extensive or leaves you permanently unable to work you need to have a financial backup plan. Having a quality Contractor’s Disability Insurance Policy can give you the financial security you need even in the harshest of circumstances. Listed below is some information you will need to know to find the right insurance policy for you.

What does disability insurance do?

If you’re not working then income may be hard to come by once your workers compensation package runs out. Contractors’ disability insurance is designed to supplement or replace a portion of your income in the event that you become disabled or can no longer perform the tasks you were previously able to. What portion of your income is replaced depends on the type of group plan offered by your employer. The insurance package typically replaces around 60 percent of your income but can go as high as 80 percent if you choose a supplemental or individual disability insurance policy.

How long do they last?

It may be great that your policy will replace 80 percent of your income but if that replacement only lasts for a year or two you could end up in a fairly precarious position. Luckily, our packages are slated to last quite a few years or until you reach retirement age. After you reach retirement age it is assumed that you will no longer be reliant on that work-related income and will have transferred over to retirement income. So, with some quality financial planning and a good retirement package you should be able to focus more on managing your disability than worrying where you income may be coming from.

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