Intro
Imagine that you were unable to care for your patient, provide your massage services and earn money for an entire year. How would your life change? How would you replace your income if you got too sick or injured to work? Some people have enough money saved away to sustain themselves through long periods without an income – but what if you didn’t? In the United States, living paycheck to paycheck is the most prevalent financial lifestyle, with a rising number of even high-income individuals living this way. Disability insurance (or disability income insurance as we like to call it at Asteya), is your financial safety net should the unpredictable happen. Disability isn’t just a theoretical possibility, in fact, one in four working adults will become disabled during their working years.
Why does every massage therapist need disability insurance?
To answer this question, let's start by defining what disability insurance or income insurance as we like to call it at Asteya. It is a policy that supplements your income in the event you’re unable to work due to illness or injury – you can think of it as your financial safety net. Disability insurance is often time overlooked because people either are unaware that it exists or have the wrong idea behind what it actually is.
Many professionals don't think disability insurance is important because they think it covers the same kinds of injuries that can happen on a construction site or factory floor. Little do they know that most disabilities are actually caused by health problems.
In fact, and according to study, cancer, heart disease, and arthritis cause 90% of long-term disabilities. The same study reveals that 95% of accidents and illnesses that can get in the way of your work are not actually caused by the job itself.
Working as a massage therapist can provide you with several benefits. Everyone who seeks your help will benefit from your skills, and you'll have the opportunity to be your own boss while making a good living. Like any employment, though, such perks aren't without their share of dangers, and you should take all precaution to keep what you've built intact.
When disability happens, you would have an overwhelming amount of medical costs leaving you unable to meet important payment dues even with your savings, such as mortgage, child school tuitions, the cable bill, groceries etc. Not to forget that the road to recovery can also be costly. Your disability can have psychological effects such as mental anguish, loss of enjoyment, stress, and so on.
“I have an emergency savings account that I can rely on, I don't need disability insurance"
You might be thinking, “I have an emergency savings account, so I don’t need disability insurance” – if that’s the case, that’s incredible! But even if you do have enough savings to provide you with a financial safety net when the unexpected happens, have you thought about how long your savings could sustain you? Or what draining your savings might mean for the future? For example, you now might not have the capacity to afford college tuition for your kids.
The reality is that disabilities are unpredictable – they can happen anytime, anywhere, and will no doubt effect your financial wellbeing, which influences your overall wellbeing.
“I can get benefits from SSDI, I don’t need additional coverage”
For some people that become disabled, they can get Social Security Disability Insurance (SSDI) benefits from the Social Security Administration (SSA). However, disability benefits from Social Security are insufficient. The payouts can be small and limited.
As of 2021, the average monthly payment received by people with a disability through social security benefits is approximately $1,280 per month, or $320 per week, which is usually not enough to meet basic living costs, let alone retirement and other long-term goals. Having a private disability insurance policy can be the best way to protect your income sufficiently as it typically covers 60-80% of your income as a massage therapist.
“Disability Insurance is super expensive, I’m not sure I can afford it”
Protecting your income shouldn’t be a luxury, so here at Asteya, we’ve created affordable and easy solutions that won’t drain what you’re trying to protect (your income!). We offer disability insurance (or disability income insurance, as we like to call it) that’s simple, fast, and affordable. Our 100% digital process means we don’t tire you out with proof of income, medical exams, phone interviews, or wait times, so you can go from applicant to insured in no time. Our prices start as low as:
Permanent Disability Income Insurance: starting at $6.05/month
Sickness & Injury Disability Income Insurance: starting at $5/month
How much disability coverage do massage therapists need?
How much you pay for disability insurance as a massage therapist is determined by several factors, including the policy options you choose (such as the benefit amount and waiting period length) and your individual needs (such as your health and the nature of your business). Your premiums will be lower if you sign up for health insurance when you're still young and healthy.
That's why it's wise to start preparing early in your career to ensure you get the best possible rate. It's easy to add more protection later.
To better help you understand what areas in your life need coverage, start by figuring out how much you spend on living each month:
- Housing
- Utilities
- Food
- Childcare
- Loan payments
- College savings and/or tuition
- Retirement savings
- Auto expenses
- Any other recurring bills
Then, look at your monthly business costs:
- Rent or mortgage
- Utilities
- Insurance
- Pay, benefits, and other forms of payment
- Taxes
- Loan payments
- Miscellaneous
Most of the time, you can only get coverage for 60-80% of your personal income, but you can get coverage for 100% of your fixed monthly business costs.
If you have a lot of money in savings or other liquid assets, you can take those into account and change what you need.
You may also decide later that some expenses aren't necessary. However, when you start looking for a policy, you need to have a good idea of how much your personal and business expenses are.
How much does disability insurance for massage therapists cost?
Insurance companies underwrite disability coverage based on the likelihood of a claim being filed by an applicant. They also consider how much and how long a person can receive those benefits.
You should also know that your profession has a significant impact on your premium rate. Insurance companies classify jobs based on their hazards, as some are more prone to injury or illness than others. Different jobs are classified according to their level of risk.
Your career may also be evaluated based on how difficult it is to return to work after an injury or illness. The more difficult it is to perform a job with certain injuries or illnesses, the more benefits the insurance company may have to pay.
Your needs and way of life are unique to you, just like your business has its own customers, processes, assets, and liabilities.
And so, when it comes to the policy, it needs to be customized with a specific benefit amount and length that addresses these needs, as well as other components such as getting a Cost-of-Living Adjustment rider to take inflation into account.
A policy with a smaller benefit, a longer waiting period, and a shorter benefit period will cost less than one with a larger benefit, a shorter waiting period, and payments that last until retirement.
Your premium costs will also depend on things like your age, gender, lifestyle, and job. One rule of thumb is that a policy that gives you the coverage you need will cost between 1% and 3% of your annual income.
How to apply for disability insurance as a massage therapist
As a massage therapists, there are two things you should look for in a disability insurance policy.
Insurance companies categorize jobs into various risk categories based on collected data. The greater your risk of submitting a claim, the higher your premium. According to statistics, the older you are, the more likely you are to become disabled and the more likely you are to have higher premiums. By getting coverage now, you can save money in the long run.
Additionally, it's a good idea to have a policy with a future purchase option, also known as a future increase option, a future insurability option, or a benefits update rider. This lets you buy more insurance coverage for a disability policy you already have through your employer.
And with this, you increase your coverage by showing proof that you can pay for it, without having to go through any more medical underwriting.
Asteya’s disability policy is the right fit for you. It’s quick, easy, and totally online.
At Asteya, applying for disability insurance as a massage therapist is incredibly simple. The application is completely digital so there’s no need for medical exams, blood tests, phone calls or lengthy paper applications. Asteya's underwriting occurs in real-time which means you can obtain a policy in 30 minutes or less!
What are the typical extras that massage therapists need to add to their insurance?
Own-Occupation Rider: Massage therapists’ disability coverage must include an "own-occupation" rider. The criteria that define a disability is set forth in an own-occupation rider. A self-employed massage therapist would be eligible for full disability benefits if they lost the use of their hands, even if they could still work in other capacities. Without an "own-occupation rider," a massage therapist would forfeit their monthly benefit if they took a job in a different industry, regardless of how much money they made.
The bottom line
No matter your occupation or your background, disability insurance should be one of the main policies that you should consider getting. The peace of mind that comes with having disability insurance is knowing that you and your family's living expenses will be covered no matter what happens to you.
If you're still on the fence about whether disability income insurance is for you (hint: it is), here are a few extra points to consider while thinking about it:
- Asteya’s policy is a no brainer, seeing that it is 100% digital. We don't require blood tests or doctor's appointments, unlike other insurers. We'll just ask you a few questions to determine your best policy.
- You’ll be all set once your policy is in place! You'll pay your premiums quarterly, monthly, or annually for the duration of your policy.
- If the unexpected happens and you need to file a claim, our team will be there to assist you in receiving the funds you require as soon as possible. When your claim is approved, you'll receive a payout that you can put toward whatever you need, such as bills, groceries, or medical expenditures.