Direct answer
It depends on your monthly overhead expenses and your current net income, though most experts recommend covering 60% to 80% of your pre-tax earnings. You must ensure your coverage accounts for business-related expenses that would persist if you were unable to work.
Financial planning standards for independent contractors provided by the Council for Disability Awareness. For additional information about managing personal financial risks, see the American Institute of CPAs‘s professional resources for independent practitioners.
What this means for you
It depends on your monthly overhead expenses and your current net income, though most experts recommend covering 60% to 80% of your pre-tax earnings. You must ensure your coverage accounts for business-related expenses that would persist if you were unable to work.
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