Why Do Gig Workers & Freelancers Need Life Insurance?

The gig economy is thriving. In fact, more people than ever are ditching the 9-to-5 grind for the freedom and flexibility of freelance and gig work. But, this freedom comes with a catch: no traditional workplace benefits.

Without access to a traditional HR department, self-directed financial planning is a must. Life insurance plays a crucial role in the process. It can be your financial safety net; there to make sure you and your loved ones are covered if life takes an unexpected turn.

Common Myths About Life Insurance for Freelancers

As important as it is, many freelancers and gig workers, as well as the rest of the population, shy away from getting life insurance because of common misconceptions. Let’s set the record straight by debunking a few of these myths.

Myth 1: Life Insurance Is Too Expensive

Think life insurance will blow your budget? Not so fast. Life insurance is often more affordable than you’d expect. Take term life insurance, for example. It can provide life insurance protections to cover significant expenses for a specific period of time (anywhere from 10 to 30 years) with a relatively low premium. For example, with our 20-year Family Plan term policy, a 30-year-old female can get $250,000 in coverage for $15 per month.

Look at your options, and you’re sure to find a policy that works for you.

Myth 2: I Don’t Need Life Insurance Because I Have Savings

Sure, savings are helpful when you’re freelancing—but they’re not your financial superhero. Life insurance brings the kind of backup that savings on their own just can’t. It’s hard for anyone, freelancer or traditional employee, to have enough in savings to cover the loss of an earner’s income.

Whole life insurance not only provides lifelong insurance protection, but it also builds cash value you can tap into during emergencies. Imagine that—life insurance that works as hard as you do.

Myth 3: You Need a Steady Income to Qualify for Life Insurance

Opted out of the traditional 9-to-5? No problem. Gig workers, freelancers and side-hustlers can totally get in on the action. Many insurers offer flexible payment options that fit variable income. As long as you can show you’ve got some consistent earnings, you’re probably good to go.

Flexible Features Built for Freelancers and Gig Workers

Insurance providers recognize that freelancers and gig workers have unique needs, and offer features designed for fluctuating incomes and non-traditional careers. Here are a few options to consider:

• Adjusting Premiums: Some policies let you decrease your coverage to lower your premiums, giving you flexibility if your financial situation changes. However, increasing coverage typically requires underwriting or taking out a new policy.
• Term Life Coverage: Term life policies offer the greatest amount of coverage at the lowest cost because they are designed for a specific duration If you only need coverage for a certain life stage—like raising young children or paying off a mortgage—you can secure a lower premium compared to a policy that lasts your entire lifetime.
• No Medical Exam Options: Many insurers offer policies that don’t require a medical exam up to a certain face amount/death benefit, making it easier to get covered quickly. But if you’re healthy, you would likely get a lower rate with an underwritten policy that takes your health into account.

Life Insurance Options for Self-Employed Freelancers or Gig Workers

When considering life insurance, be clear on the different types of policies available and how they align with your needs. Here’s a look at two popular options:

• Term Life Insurance: This is your go-to for affordable, straightforward coverage. Term life insurance provides coverage for a set term (10, 20 or 30 years), making it a great way to protect your family during crucial years.
• Whole Life Insurance: Want something more long-term? Whole life insurance, also known as permanent life insurance, offers lifelong coverage and builds cash value you can borrow against or receive when you cash out the policy. While it’s pricier than term life, it’s like a double-duty policy: coverage plus a financial cushion.

Get Covered Today

No matter how wild your day-to-day gets, life insurance is a solid move for any gig worker looking for added financial stability. With a little research and some flexible options, you can find a policy that fits your unique lifestyle and gives you and your family the needed security.

Ready to lock it down? Contact Us or call 1-800-704-2180 to review your options. You can also use our online quote tool to find out what kind of coverage fits your budget. Don’t let the gig life keep you from getting the peace of mind you deserve.