As a self-employed professional—freelancer, contractor, or consultant—you may feel you can take care of anything. But what happens if illness or injury prevents you from working? With high living costs in Los Angeles, Disability Insurance is essential for protecting your income and lifestyle.
1. What is Disability Insurance?
Disability Insurance provides income replacement if you can’t work due to illness or injury. Policies may be short-term or long-term, depending on your needs. It ensures that bills, rent, and everyday expenses are covered even when your ability to earn is temporarily or permanently impacted.
2. The Risk for Self-Employed Professionals
Unlike salaried employees, self-employed workers don’t have employer-paid sick leave or built-in disability benefits. That means if you stop working, income stops too. Add in high fixed expenses like rent, software subscriptions, or equipment leases, and the impact can be devastating. Income volatility only adds to the uncertainty.
3. Types of Disability Plans
There are several ways Disability Insurance can be structured:
- Short-term vs. Long-term: Short-term covers weeks to a year, while long-term extends benefits until retirement age.
- Own-occupation vs. Any-occupation: Own-occupation policies pay if you can’t do your specific job, while any-occupation requires that you be unable to work at all.
- Riders: Add-ons like residual or partial coverage ensure some benefits even if you return to work part-time.
4. A Real-Life Example
Take Maria, a freelance graphic designer in Glendale. She had no employer benefits and worried about what would happen if she couldn’t take on projects. After reviewing options, she secured a long-term own-occupation policy with partial income protection. This means even if she can only work part-time during recovery, she still receives support. Her policy provides stability and peace of mind while she continues to grow her business.
5. How Legacy Partners Supports You
Disability Insurance isn’t always straightforward. Policies differ in terms, cost, and flexibility. Working with an independent agency like Legacy Partners means you’re not tied to one carrier—we compare options from multiple providers. That way, you can choose a policy that truly fits your lifestyle, income, and goals. Our team also offers policy reviews and flexible consultations to make the process less overwhelming.
Conclusion
If you’re self-employed, Disability Insurance isn’t optional—it’s vital. Protecting your income means protecting your future, your independence, and your family’s stability. By understanding the different plan types, assessing your risks, and reviewing options, you can make an informed decision that keeps your financial foundation secure. Legacy Partners is here to help you explore those choices with clarity and confidence.
FAQ for Why Disability Insurance is Essential for Self-Employed Professionals in Los Angeles
Q1: How much of my income does disability insurance replace?
Most long-term disability policies replace 60–80% of your pre-disability income.
Q2: What’s the difference between short-term and long-term disability insurance?
Short-term covers temporary illnesses or injuries (weeks to a year). Long-term may last until retirement age.
Q3: What does “own-occupation” vs. “any-occupation” mean?
Own-occupation pays if you can’t perform your specific job. Any-occupation is stricter, requiring that you be unable to perform any work at all.
Q4: Do I need disability insurance if I already have savings?
Savings help, but they can be depleted quickly. Disability insurance ensures consistent income without draining your assets.
Q5: How much does disability insurance cost for self-employed people?
Premiums vary by age, health, and benefit amount. On average, it costs about 1–3% of your annual income.