As a self-employed contractor, you may find it difficult not to have all the benefits of a permanent employee. If you ever get sick, you would have to see if your monthly savings will be enough to support you during your time off your contractual duties. As a result, one of the top things you should consider if you are a contractor or business owner is an insurance policy.
Accidents or injuries may happen without warning, but these should not stop you from getting your income. Contractor Sickness Insurance will protect you if you cannot work for a prolonged time due to illness and other similar circumstances. This particular type of insurance will be beneficial for you if you are not covered by workers’ compensation.
Contractor sickness and accident insurance policies are particularly beneficial for contract workers, part-time workers, small business owners, or traders. With a vast number of businesses not covered by workers’ compensation, there is a need for more contractors to know about how sickness insurance works and why it is hugely significant.
Sickness insurance includes all illnesses that prevent you from doing your job. Depending on your insurer and the policy you choose, you would typically get about 65% to 85% of your gross income. The way it works is that you get a monthly income to cover your expenses and ensure that you can still pay for your necessities.
Sickness insurance policies typically also come with dividends from your contracting company, and possibly government benefits. The latter may depend on the severity of your accident or illness. Other insurers may offer you additional benefits like rehabilitation or assistance when you have to return to work, so you can look through different policies before choosing one.
One of the great things about Contractor Sickness Insurance is that you can easily customize your plan depending on your needs. Some insurers might give you the option to get an accident-only coverage, sickness-only coverage, or accident and sickness coverage. Some may also give you the benefit of receiving a lump sum payment in case of total or partial disablement.
Your benefits typically depend on your income and the deferred period that you choose. Some policies may allow you to select a waiting period, but others will immediately cover you from the first day of your accident or illness. Similar to other insurance policies, you can decide how long you want your plan to last, which can be up until your retirement.
In case you have any pre-existing health conditions before taking out a plan, you have to make sure you declare it in your policy. Insurers will have different policies for cases like this, so you may find some that will cover your condition with the same terms or on a premium, or exclude the condition altogether.
Choosing an Insurer
If you are set on getting a sickness insurance policy, then you need to consider several factors when choosing an insurer. Make sure you get in touch with a company that has the experience and credibility of protecting contractors. It would be best if you also were extra cautious and read through all the terms of your policy to make sure you receive the benefits once you cannot do your job.
When looking through policies, you should also make sure that the one you choose is inflation-proofed. This way, the amount you receive will still be enough to cover your expenses even if inflation occurs.