Life Insurance Tips for Freelancers


Being a freelancer often comes with several advantages including flexibility in work schedule and the ability to pick and choose projects that interest you. However, the thing that freelancing rarely offers is dependability or employer-sponsored benefits. With the nature of freelance work, your income can vary greatly from month to month and week to week. Because of this, it might not be clear just how much life insurance you need or if you should have it at all.

First of all, yes, you likely should have life insurance. While paying out for life insurance may seem like a waste of money when you’re young and healthy, this is the best time to get it. Not only will insurance be easier and cheaper to get now versus when you are older, it will give you and your loved ones peace of mind.

The primary exception to needing life insurance is if you do not have dependents. However, even without dependents, you should still consider any student loan or credit card debt that a spouse or co-signer could be held responsible for. Additionally, if your estate has enough in it to cover your mortgage, car loans, and funeral expenses then it is not as critical to get additional coverage.


Other Things to Consider

Term Life or Whole Life?

Whole life, or permanent life insurance, as the name implies, is life insurance that lasts your whole life. Term life, on the other hand, is set up to last for a set amount of time such as 20 years. Though whole life does have some benefits and advantages, term life is cheaper and typically recommended for most people – whether they are freelance or not.

Term life is what most people think of when they think of how life insurance works – it is set up to cover dependents after a person passes away. Beneficiaries are only able to collect if 1) the policyholder passes away before the end of the term and 2) payments are up to date.

By choosing a duration like 20-years, this is often long enough to keep the policy active until dependent children are grown and no longer in need of the insurance payout. However, this is just one scenario and you can choose another term length or extend or modify benefits later.


How Much Coverage Should I Get?

This can be a complicated topic for everyone no matter how they are employed. For some, simply having enough to cover funeral expenses may be enough. For others it may be a matter of paying off debt, providing for dependents and much more. To help you further calculate your life insurance amount, read How Much Life Insurance Do I Need?

Does Your Business Have Debt?


Along with considering your personal debt for credit cards, mortgage and more, a freelancer also needs to look at what their business owes. Without life insurance to cover this debt, your business’s legacy and your entire estate could be put at risk with nothing left for your loved ones.


Getting Your Freelancer Life Insurance Questions Answered

Still not sure how much or what kind of life insurance you need? The professionals at Arbor Creek Financial are here to help. Our knowledgeable agents will assess your needs and make expert recommendations for your financial health. To learn more, contact Arbor Creek today.