Manuel Wallace
Disability insurance for self employed people replaces part of your income if illness or injury keeps you from working, since there's no employer sponsored plan or paid sick leave to fall back on. Coverage varies widely by insurer, with differences in monthly payout caps, waiting periods and how much of your income gets replaced.
In Brief
- MassMutual offers the highest combination of income coverage (up to 80%) and extended benefits to age 70.
- Thrivent has the lowest premiums among companies reviewed, but membership is limited to Christians or their spouses.
- The Standard pays the largest maximum monthly benefit at $35,000, aimed at high income earners.
- Assurity stands out for short term disability coverage with a $6,000 average maximum monthly benefit.
- Ameritas allows the most customization through riders and elimination period choices, though it caps income replacement at 66%.
Why Self Employed Workers Need Their Own Policy
Anyone who runs their own business, freelances or works as an independent contractor takes on a risk that salaried employees rarely think about: no paycheck if they can't work. Without an employer group plan, self employed people have to buy individual disability insurance if they want that income protected. Policies generally pay a percentage of pre disability earnings, typically between 60% and 80%, depending on the insurer and plan design.
Coverage splits into short term and long term categories. Short term policies pay out for a matter of months following a shorter elimination period, often 30 days, while long term policies can pay benefits for years, sometimes until age 65, 67 or even 70, but usually only kick in after a longer wait of 60 days or more. Business owners also have access to specialized products like business overhead expense insurance, which reimburses costs such as rent, utilities and staff salaries while the owner recovers, and buy sell or business equity protector policies that fund a partner buyout if a co owner becomes disabled.
Comparing the Top Companies
Each insurer approaches self employed disability coverage a little differently, whether through payout size, price, waiting periods or add on riders. Here's how six companies stack up on the core numbers.
| Insurer | Best For | Max Monthly Benefit | Max Benefit Period | Min Elimination Period | Max % of Income Covered |
|---|---|---|---|---|---|
| MassMutual | Overall | $30,000 | Up to age 70 | 60 days | 80% |
| Thrivent | Affordability | $18,000 | Up to age 67 | 30 days | 70% |
| State Farm | Affordability | $20,000 | To age 67 | 30 days | 80% |
| The Standard | High earners | $35,000 | Up to age 67 | 60 days | Not specified |
| Assurity | Short term disability | $20,000 | Up to age 67 | 30 days | Not specified |
| Ameritas | Customization | $30,000 | Up to age 67 | 30 days | 66% |
MassMutual pairs its 80% income replacement with coverage that can run until age 70, longer than any other insurer on this list, plus riders like an own occupation benefit and a professional replacement expense option that pays for hiring someone to cover your work while you recover. Married couples who both buy MassMutual policies get a 10% discount on premiums. The catch is a 60 day minimum elimination period and no standalone short term policy, only a rider version.
Thrivent undercuts everyone on price. For a 40 year old dentist earning $100,000 and seeking coverage to age 67, quoted monthly premiums came in at $164 for men and $206 for women, the lowest of the group. Policies can also pay dividends starting on the fifth policy anniversary, which policyholders can take as cash, apply to cash value or use to lower premiums. But Thrivent only sells to Christians or their spouses, caps income replacement at 70%, limits its maximum monthly benefit to $18,000 (the lowest reviewed) and requires applicants to sign up by age 60.
Where Price and Payout Size Diverge
State Farm gives Thrivent a run for its money on cost. Its rates for the same 40 year old male dentist were slightly below Thrivent's, though quotes for women ran more than $100 a month higher. State Farm matches MassMutual's 80% income replacement and offers a 30 day elimination period, but its $20,000 maximum monthly benefit trails several competitors, and its rider lineup is thinner.
The Standard targets a different buyer entirely: high income self employed professionals who need a big payout ceiling. Its $35,000 maximum monthly benefit is the largest among the insurers compared here, and applicants can apply up to age 64, tied for the highest cutoff in the group. Its Platinum Advantage policy adds a family care benefit that replaces some lost income if you have to step away to care for a sick relative, and its Business Equity Protector policy funds a buyout if a co owner becomes disabled. The tradeoffs are a 60 day minimum elimination period and no online quote tool.
Assurity focuses on the short term side of the market. Its short term policies average a $6,000 maximum monthly benefit, and pricing for that same dentist example runs $66 a month for men and $87 for women, still cheaper than State Farm's short term premiums of $43 and $77, though State Farm's average maximum benefit for short term coverage is lower at $2,985. Assurity also lets policyholders keep receiving benefits for the first two years of a claim if they can work in a different field, as long as they can't perform their original occupation. Its Century+ policy includes a business owner income enhancement that boosts the benefit calculation by adding 20% to account for taxes typically withheld from income. Assurity's long term maximum monthly benefit tops out at $20,000, and it lacks riders for retirement contributions or student loan payoff.
How Riders and Elimination Periods Shape the Right Fit
Ameritas leans hardest into flexibility. Buyers can choose from five elimination periods, including a 30 day option, and add riders such as a future increase option that lets you raise coverage later without a new medical exam, useful for anyone whose self employment income shifts from year to year. A cost of living adjustment rider helps benefit payments keep pace with inflation over a long claim. The drawback is that Ameritas caps income replacement at 66%, tied for the lowest among insurers reviewed here, and its maximum monthly benefit may fall short for very high earners.
Choosing among these insurers comes down to what matters most: a higher income replacement percentage, a bigger monthly cap, a shorter wait before benefits start, or the ability to customize coverage as your business changes. Someone running a growing consulting practice might value Ameritas' future increase rider, while a surgeon or attorney billing a high income might lean toward The Standard's larger payout ceiling.
MassMutual's long benefit period to age 70 could matter more to someone who plans to keep working well past traditional retirement age. There's no single best policy for every self employed worker, only a best fit based on income level, budget and how long a person can realistically cover expenses out of pocket before benefits begin.
Frequently Asked Questions
Can you be self employed on disability?
Yes. Self employed workers can hold a disability insurance policy and remain self employed; the policy simply pays a portion of income if illness or injury prevents them from performing their work duties.
Can a self employed person get disability insurance?
Self employed people can buy individual disability insurance directly from insurers such as MassMutual, State Farm, The Standard, Assurity, Ameritas or Thrivent, since they typically lack access to an employer sponsored group plan.
How much is disability insurance for a self employed person?
Cost depends on age, income, health and the insurer, but as an example, a 40 year old dentist earning $100,000 was quoted long term premiums ranging from around $164 a month at Thrivent up to higher rates at other companies, depending on coverage terms.
