What You Should Know about Life Insurance as a Freelancer

Life insurance for Freelancers

What You Should Know about Life Insurance as a Freelancer

As a gig economy worker, you have many day-to-day and long-term priorities, but life insurance may not be one of those, at least for now. It’s easy to see why, especially when you have important things to take care of, including your family, health, and affordable housing. If a 2019 report is anything to go by, you belong in a special group that should constitute half of the U.S. workforce by 2020.

However, if family is part of your priorities today, now is the right time to consider getting life insurance for freelancers.

Here are some essential facts you need to know before you make up your mind about life insurance as a freelancer:

Why Life Insurance Coverage Should Be a Priority

You work in an economy that doesn’t guarantee a steady income, which is why you hesitate to get a life insurance policy. There’s no telling where your next gig will come from and how much you may earn from it. After you’re finally hired, you could wake up one morning to a contract termination email, dealing a devastating blow to your long-term budgeting efforts.

Under such circumstances, you may never prioritize freelancer insurance, which is a long-term or even lifelong financial commitment. However, when you have a family that counts on you to put food on the table every day, purchasing insurance protection is one of the most important decisions you could ever make in your entire freelancing life.

The coverage serves as your family’s financial safety net in the unfortunate event of your death. When you’re the sole breadwinner, life insurance can ensure that your spouse, kids, and other dependents have the support they need to get by or even have a comfortable life even when you’re gone.

Keep the following factors in mind when buying life insurance for freelancers:

1. Duration of Coverage

Do you need protection for only a specific duration, such as before your kids become adults and independent? Do you want a policy that matures after you pay off your mortgage? You will have to determine the duration of your coverage, depending on your unique needs.

2. Your Family Needs

Consider the financial needs of all your beneficiaries, including children and spouse. Your family is the primary reason for buying life insurance.

3. Financial Objectives

You need to save or invest when you’re a freelancer, and certain types of life insurance can help with that. For example, permanent life insurance policies have a cash value element that grows over time, besides the death benefit.

Joining a Freelancers Union Helps a Great Deal

You’re not on your own in the freelancing world. There are unions of like-minded persons that you can join and secure insurance plans tailored around freelancers’ financial needs.

With a freelancer union life insurance policy, you can get a coverage that considers the uncertainties of freelancing. Organizations like Freelancers Union have exclusive packages that you can’t easily access on your own or anywhere else.

Spousal Coverage Isn’t Always Sufficient

You may want to weigh your options before embracing spousal coverage while you have your own freelancer life insurance plan. Such a move usually attracts a spousal surcharge, increasing the cost of insurance for your entire family. If securing your dear ones’ future through your partner’s employer-sponsored plan is too costly, consider a more viable alternative.

Keep in mind that spousal coverage isn’t always comprehensive. It may not always give you the coverage benefits you seek. That’s why you may need to get your own life insurance cover to optimize protection.
Income volatility doesn’t have to stop you from protecting your family’s future by purchasing life insurance for freelancers. After all, such protection isn’t that hard to come by or budget for when you’re a member of professional freelancer unions.

Looking to secure an ideal life insurance plan based on your financial circumstances and needs? Contact us at Club Agency Insurance Brokerage in Garden City, New York today. We are here to assist you with all your coverage needs.


COVID-19 Update:

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