Private Disability Insurance
[by Jim Cavanaugh]
Insurance statistics tell us that we are seven times more likely to become disabled than die during our work life. Many folks have life insurance but far fewer independent photographers have private disability insurance. Many assume, if they become disabled, that they will be taken care of by Workers Comp or State Disability Insurance. But in some cases, independent business owners are not covered at all. And if covered, the amounts may be insufficient to cover your income needs and may only last a matter of months.
Private Disability Insurance can provide income to cover your salary and business overhead until you reach retirement age. It is reasonably priced for the peace of mind it can bring. The cost depends on your age, your specific job responsibilities and the amount of coverage and the length of time it will be paid. Shop carefully, some policies may provide income for a few years, others until retirement age when you would be eligible for Social Security.
Private disability insurance can be deducted on your Federal income tax returns. However, if you deduct the premium, your benefits are taxable. If you do not deduct your premiums, your disability income is not subject to Federal income taxes.
If you are not covered, look into it today. You don’t want to lose everything you have worked for due to an unforeseen accident or health crisis.
