You work from home. You set your own schedule, you press the snooze button a hundred times. You can take your time in the morning, not only drinking your coffee, but also tasting it. Your longest commute will be from your bedroom to your desk. Just the idea of avoiding GTA gridlock altogether can be enough to make anyone consider a different career path. The pace is slower, but that doesn’t mean you don’t get the job done. After all, you are a small business owner or freelancer, and every bit of your success depends wholly on your effort. There are many perks to working for oneself, which may be why so many people are eschewing the typical nine to five job structure and easing into freelancing or small business ownership.
Self-Employment Comes at a Higher Cost to Health Care
The list of pros is lengthy, but there is one big fat con that actually prevents more would-be freelancers and small business owners from moving away from corporate life, and that is the promise of benefits. Group benefits provided by your employer are perks to keep employees happy and healthy. For those of us who aren’t covered under private health insurance, we pine after sick leave and private medical, prescription, eye, and dental care. Many of us aren’t getting the level of dental care or physiotherapy we need because of the high cost. Professional women of childbearing years will often choose or stay in a job because of the promise of maternity leave.
If you have your heart set on being your own boss, you might consider these facts as slight hiccoughs that can easily be overcome with some planning and a bit of saving. You may have to save up for your biannual dental appointments and consider buying private health insurance. There are many affordable options from which to choose, depending on your health needs and family situation. But one thing we cannot work around, no matter how optimistic or hard-working we are, is when we become severely ill or injured and can no longer support ourselves. After all, we have a lot of other, more urgent expenses we need to pay for as newly self-employed business owners. As ambitious professionals, we sometimes forget about the cost of health and well-being.
Can a Self-Employed Professional Be Financially Protected?
If you’re considering joining the millions of professionals who work as contractors, freelancers, or small business owners but are worried about what would happen in the event of an accident or serious illness that would put you out of work, it’s helpful to know what financial assistance programs are available in your time of need. Like full-time employees who have their weekly contributions automatically deducted from their pay, you can also register with the Canada Revenue Agency to have a portion of your income allotted to Employment Insurance (EI). When you register for EI, you will be contributing to the exact same services as traditional employees. For more information about eligibility and how to apply, click here.
Employment Insurance benefits only last up to 15 weeks, so if your illness or injury is preventing you from returning to work after then, you will need to be insured through other means. Long- term disability insurance is your best option for achieving full coverage. It may seem like an unnecessary expense, especially in the young and feeble stages of your business, but an illness or injury can strike at any time without warning.
Long-Term Disability Insurance
If the added cost of disability insurance is preventing you from protecting yourself, there are packages that can be tailored to your needs and budget. For instance, plans can range from basic, no-frill, injury-only coverage to those that come with all the bells and whistles that are generally geared toward high-income self-employed earners. Instead of seeing this expense as something that can be put off until your budget is right, consider the cost of insurance otherwise benefitted to you by your employer before you make the switch.
If you’re on the fence about saying sayonara to your cubicle and saying hello to job freedom, don’t let the cost of long-term disability insurance be the reason to shy away from your ultimate goal. Contact a reputable insurance broker who can assist you in finding the perfect package that suits your situation.
Are You Struggling with Your Sick Leave Benefits?
If you’re self-employed and you become severely sick or injured and can no longer support yourself financially, don’t lose hope. If you are struggling with the process of applying for your benefits or your benefits have been denied or terminated, you may want to seek trusted legal advice from an expert. Book a free consultation with Sokoloff Lawyers and rest assured that your case is in the right hands.
Sources:
https://www.labour.gov.on.ca/english/es/pubs/guide/benefits.php
http://www.esdc.gc.ca/en/ei/sickness/index.page?
http://www.rbcinsurance.com/healthinsurance/disability-insurance.html?disability-insurance=1