After his three private disability insurance policies protected his financial health, accomplished maxillofacial surgeon Christopher C. “Chris” Babcock, MD, DMD, became a licensed insurance broker to educate more people on the value of obtaining adequate coverage. Dr. Christopher C. Babcock frequently shares his story at finance-focused seminars geared toward helping professionals maintain their financial status during emergencies. One group particularly at financial risk due to disability is the self-employed.
While employees often receive short and long-term disability benefits from their jobs, self-employed people must purchase policies on their own. A combination of a three-to-six month emergency fund, savings to cover out-of-pocket health insurance maximums, and a long-term disability insurance policy are the best way for freelancers to protect themselves from financial ruin.
The most suitable type of long-term disability policy depends on several factors. Freelancers who do less physically-demanding work such as writing or consulting may be better served by policies that cover partial disability. On the other hand, high-earning freelancers should consider buying “own occupation” coverage, which goes into effect if the disability hinders the policyholder’s ability to do their specific line of work.