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Newly Self-Employed

For the self employed, disability underwriters generally require financial documentation in the form of business tax returns for the past two years, to show proof of income. What if you have a client that just opened their own business and has not yet filed a tax return? Due to the fact that many new businesses do not make it in the first two years or have very little or no profit, carriers have previously not issued coverage to these business owners until they can present sufficient financial documentation. However, many carriers have now adopted Newly Self-Employed guidelines that provide starter plans for individuals with options to increase coverage when they become more established and profitable. See the Financial Underwriting & Taxation file in Broker Resources.


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