Those who sustain an injury that prevents them from working have the chance to obtain disability benefits that help cover living expenses. However, this begs the question — can self-employed workers qualify for long-term disability benefits?
Given how many entrepreneurs, small business owners, and other similar individuals are their own bosses working their own schedules, whether or not LTD benefits are an option to them may seem up in the air. Fortunately, self-employed workers can qualify for benefits in many circumstances.
If you’re curious about long-term disability for self-employed workers, it’s best to speak with a professional. But, here is some general information that can help you get started.
First, a Quick Overview of Long-Term Disability
Long-term disability insurance is a financial safeguard that replaces a portion of lost income when illness or injury prevents a person from performing substantial and material duties of their job. This coverage helps protect personal income when an individual cannot engage in substantial gainful activity.
What Must a Self-Employed Worker Prove to Qualify for LTD?
To qualify for long-term disability benefits, a self-employed person must demonstrate that their condition prevents them from completing the substantial and material duties of their occupation. The insurance company will require medical records and evidence supporting the disability claim.
It is also worth noting that self-employed people need to show proof of income and monthly business expenses to determine the amount of disability income insurance they are eligible to receive. Those who pay self-employment taxes may also need to provide records of these payments to confirm eligibility for certain benefits.
What Kinds of Injuries Can Prevent a Freelance Worker From Performing Their Duties?
Self-employed workers who suffer from injuries that impair mobility, cognitive abilities, or overall stamina may be unable to continue their work. For instance, a spinal injury could limit a self-employed worker’s ability to meet physical demands, while any mobility impairments can seriously impact those who regularly travel for their job.
Whether the impairment qualifies as a disability depends on how it affects their ability to perform substantial gainful activity. A self-employed person who files a disability claim for such injuries will need to document how these issues prevent them from completing their essential responsibilities.
What Do Entrepreneurs and Small Business Owners Gain From Disability Benefits?
Protecting Their Business
Disability benefits help small business owners maintain stability when they cannot work due to illness or injury. With financial support from personal disability insurance or group disability insurance, they can cover ongoing business expenses like rent, salaries, and utilities.
This support prevents business owners from depleting savings or accumulating debt. For those who have paid Social Security taxes, limited support may come from Social Security disability benefits. However, private disability insurance may offer more reliable coverage.
Choosing Their Own Policy
Unlike many employees who work for corporations and big businesses where insurance decisions are already decided by upper management, small business owners have the freedom to choose a disability insurance policy that fits their specific needs. They can select options like short-term disability insurance for temporary issues or long-term disability insurance for ongoing conditions.
After consulting with a financial professional, self-employed people can identify policies with appropriate benefit payments, elimination periods, and coverage amounts. By customizing their insurance policy, self-employed individuals can have confidence that they can manage potential disruptions to their income.
To Speak With an Experienced Disability Lawyer, Call Rosen Moss Snyder LLP
Are you a freelancer, small business owner, or other self-employed individual who needs help qualifying for disability benefits? Then the long-term disability lawyers at Rosen Moss Snyder LLP will be there to fight on your behalf. Reach out today to schedule a consultation and a long-term care lawyer from our firm will help you understand the complexities of disability benefits.