The Self-Employed Need a Paycheck Protection Program
At any given time, a lot of people are out of work due to illness or injuries and need paycheck protection.
What will YOU do when the paycheck is no longer coming in? How many checks can you miss before the pain is too great?
It’s one thing to be unemployed, yet another to be physically unable to work. Self-employed? If you are not covered by a disability income plan or a paycheck protection plan through your employer, it clearly makes sense to consider purchasing an individual disability income paycheck protection plan.
Why do I need this? Won’t Social Security cover me if I’m disabled?
Disability income insurance replaces a portion of your income if you become disabled and are no longer able to work. No plan will cover ALL of your salary for fear that you would have little or no incentive to return to work.
Be aware – there are conditional rules which you need to know. Social Security pays benefits to people who cannot work because they have a medical condition that is expected to last at least one year or result in death. Federal law requires this very strict definition of disability. While some programs give money to people with partial disability or short-term disability, Social Security does not. So, essentially, Social Security is NOT a paycheck protection program.
Disability is something most people do not like to think about, right? But the chances that you will become disabled are probably greater than you realize. Studies show that a 20-year-old worker has a 3 in 10 chance of becoming disabled before reaching full retirement age.
What questions should you be asking yourself before applying for a disability income plan?
- How much income will I need each month? ($2,000; $3,500; $6,000; $20,000)
- How many years would I want it to continue? (For one year? 3 or 5 years? Until retirement?)
- From the time I become disabled, how long would I want to wait before the disability income starts paying me? (It’s called “an elimination period.” (30 days? 90 days? 6 months or longer?)
Call me if you would like more information or a proposal.
I have clients paying as little as $40/month for a $2,000 income protection plan.