Can I File a Disability Claim if I am Self-Employed?
x

Book a FREE Initial Consultation

To Learn How We Can Build a Winning Case For You.

    Note: Your Privacy is Safe with us. We will never disclose your information to external parties.

    x

    Book a FREE Claim Assessment

    ...with our Disability Lawyers & Learn How to Successfully Secure Your Benefits.

      Note: Your Privacy is Safe with us. We will never disclose your information to external parties.

      Disability

      Can I File a Disability Claim if I am Self-Employed?

      Can I File a Disability Claim if I am Self-Employed?

      To be successful as a self-employed individual, one needs a large amount of tenacity and drive to both get the endeavor off the ground and to generate a sustainable and consistent income. However, self-employment does bring risk of financial disaster if a disability strikes that prevents a person from working long-term. Disability for a self-employed individual can be complicated. One answer to this serious dilemma is exploring the possibility of obtaining disability insurance benefits to replace a portion of lost income disabled people incur when they are unable to work. What benefits a self-employed person may be able to obtain, given that this coverage is usually provided by an employer, may not be clear. Consequently, a discussion of the disability insurance options available to self-employed individuals follows below.

       

      Why is Disability Insurance Important?

      Unless a person is independently wealthy, an inability to work for even six months can wreak havoc on his or her financial well-being. Thus, when the onset of a disability occurs, which is usually an unexpected event caused by disease or accident, some avenue to replace this lost income is vital. While life insurance pays benefits to an individual’s beneficiaries upon death, it is does not help when working is impossible. Furthermore, the greater risk to a family’s overall financial security is an injury or illness that causes a long-term disability, which is compounded by the medical costs the disabled individual accrues trying to address and manage the condition.

       

      What Disability Options are There Available to a Self-Employed Individual?

      The primary source self-employed individuals can use to acquire a disability insurance policy is a private insurer. Private policies generally provide a payout of benefits after a specified waiting period, typically between 30 and 90 days, depending on the particular policy, although the waiting period could be longer. It should be noted that if a self-employed individual has employees, the self-employed individual may be able to obtain group disability insurance coverage for the entire company, which may include better coverage at a lower cost.

      Given that long-term disability insurance policies are based primarily on one’s income, when one is self-employed, one’s income is not as easily determined as if one were an employee with a regular paycheck. In some cases, insurance companies may require past tax returns or other documents verifying income. Working with an experienced disability insurance lawyer can help you locate the necessary documentation. More importantly, a disability insurance lawyer can also advise self-employed individuals on how to structure their businesses so that verification of income can be done in such a way as to more easily qualify for benefits.

       

      The Claims Process

      When making a disability claim as a self-employed individual, all communication and documentation is directed to the disability insurance company, rather than through an intermediary such as an employer’s human resources department. Thus, as there is no potential review of the documents before submission to the insurance company, becomes imperative to ensure that all documents are fully and accurately filled out, and that all supporting evidence is provided. An experienced disability insurance lawyer can help in this regard.

      If a claim is denied, most disability insurance policies provide a means by which one can appeal. As with all other aspects of disability insurance, there are many unique elements to the appeal, as well as strict deadlines. Thus, it is crucial to engage a disability insurance lawyer who knows the ins and outs of how disability insurance works.

       

      The Benefits of an Experienced Disability Insurance Lawyer

      Individual disability claims can be complicated, and insurance companies often try to drag out the claim review process. An experienced disability insurance lawyer can help ensure that both your application and the claim are complete and accurate. To find out more about how to prepare a claim, or to help respond to a denial, contact our experienced disability lawyers as soon as possible – as time is of the essence. Building an optimal application or drafting a proper response can make all the difference between a successful, timely payout of full benefits, and denied or delayed claims.

      Disclaimer: The content of this article is a general guideline made available for educational purposes only and is not intended to be used as legal advice for the reader's specific situation nor in general. By reading our blog and website content, the reader acknowledges the above and understands there is no lawyer-client relationship created between you and Himelfarb Proszanski through this content. To get specific legal advice, we encourage you to book a free consultation with one of our lawyers to clarify the legal aspects of your situation.