Why is life insurance important even when you are self-employed?

When you make the decision to become self-employed, you may feel like you are about to undertake a mammoth task. Opening your own business can be extremely difficult, but ultimately it is very rewarding. You may be faced with a lot of stress when it comes to maintaining your business, but if it is successful, you will feel extremely proud of yourself. Whilst you move forward with your self-employment, don’t forget that life insurance is still important to own. Here is why!

Protection for you and your family

Whether you work for a company or are self-employed, employee insurance will make sure you are protected when you are working. It does not matter if you are working at a computer or have more manual work to undertake, life insurance can protect you when disaster strikes. You may suffer from a life-changing injury or illness that makes it difficult to get back to work. You and your family need a safety net just in case the worst does happen to you. Make sure to protect them as well as yourself.

Make up for lack of benefits

Now that you are a self-employed person, you will experience a range of benefits, including when you have holidays, choosing when you want to work, and deciding who you want to work with. However, there are other times where you may struggle because you do not have the same benefits as those who are employed by someone else. This includes having certain types of insurance policies that will protect them should the worst happen. Employers may have “death-in-service” benefits. However, you won’t have these as your own employee. This means that if you should die at work, your family won’t be able to receive multiple payments of your salary. That’s why it is crucial that you invest in your own life insurance.

Different types of life insurance

As a self-employed person, you will have a range of life insurance policies to choose from. It’s important to choose a policy that will suit you, your business, and the type of work that you do. The most popular type of life insurance is “term-life insurance.” This is a policy that can last between five and thirty years.

The premiums for this type of insurance tend to be below if you get it whilst you are young, however, you will have to renew it if you continue to use it. If you want to go for a longer policy, you can get “permanent life insurance.” This type of insurance will not expire; however, you may find that it is a bit more expensive or the premiums may be higher.

Ongoing Debt

It can be expensive to open your own business. Therefore, it is quite likely that you may have accumulated debt whilst opening your company. This debt will pass on to your loved ones if you pass away at work. By having life insurance, the debt will be paid off. So, make sure you are fully covered.

And there you have it – everything you need to know about why life insurance is important even when you are self-employed.