Why You Need Life Insurance In This Freelance Economy

Real Estate Agent with Rise Up Local & Lead Generation Experts

I am sure you can agree that when you set up your small business or get your first gig, the last thing on your mind is life insurance.


In general, it’s hard to put value on something that you will never benefit from


But hear me out:


What if I told you that life insurance is the backbone of everything you are working to build and that there are even policies that have living benefits.


Today, I am going to go over why you need this type of insurance, how to find it online and why right now is the best and easiest time to get covered.


A Freelance Economy?


Before we go into this, let’s talk about what a freelance economy is and how it is affecting our everyday lives.


According to Whatis.com, a freelance economy, sometimes called a gig economy, is an environment in which temporary positions are common and organizations contract with independent workers for short-term engagements.


As I like to say, “In Plain English,” it’s an economy built around independent contractors & freelancers.


With companies like Lyft, Upwork, TaskRabbit, Uber, Airbnb, and GrubHub we have created a society that is built off long-term freelance contract work.


The days of having to hire a company to develop a website, or hang up painting, fix a flat tire or even make you a meal is going out the window.


According to a new study conducted by Upwork & the Freelance Union, over 57 Million people freelanced this year which is about 34% of the U.S. workforce.


It’s estimated to be at 50% by 2027, yes, in 10 years, Freelancers will make up 50% of the U.S. workforce.



Freelancers & Life Insurance - The Bad Numbers


If we take the numbers from above, it looks like Freelancing will be the way to go if you want things like freedom, ability to set your hours or the ability to create your income.


However, when it comes to life insurance, the numbers aren’t as good.


According to a study conducted by LIMRA and Lifehappens.org around 41% of people don’t have life insurance.


Even worse is that only 52% of millennials even have life insurance, but 50% of them are freelancers.


Currently, there are around 75 Million Millennials; this means that about 37.5 Million of them are freelancing, and nearly 36 Million of them have NO Life Insurance.


This is a bad thing considering that soon 50% of our workforce will be made up of a large chunk of people who have families that aren’t prepared for any unexpected loss.


Why Freelancers Really Need Life Insurance


Even though we are moving away from the traditional way of working; we still can’t forget the traditional way of protecting our family.


Any entrepreneur or freelancer may know, when you are a contracted freelance employee, in most cases, work and income aren’t guaranteed.


Your annual and monthly incomes will always fluctuate, and we just hope it’s going in an upward direction.


If you are in a season-specific industry, then you could have most of your work & money come only one time a year, and then you must be able to manage that money for the rest of the year.


Along with the funny pay schedules, we still have our daily lives, our husbands, our wives, our kids, our pets, our parents, and our community.


Even though we are living free for the most part, our lives and the lives of our family are still bound by the debt of and living expenses of life.


I know for sure that my husband couldn’t do my freelance work if I were to pass away, and that holds true probably for about 90% of us.


Remember, we aren’t buying life insurance for ourselves, we are buying it for our family.


Ask yourself these questions:


  •      If you pass away today, where would it leave your family financially?
  •      Is your spouse named as the beneficiary of your freelance income?
  •      Could your spouse or family survive on just one income?
  •      Is your freelance income the only income for your family?
  •      Do you have enough money for your kids’ college saved up?
  •      Would your spouse have enough to cover your final expenses?
  •      Do you want to leave your family in a better financial position if you pass away?


The above questions are all worth asking; if you don’t have a solid answer for all of these issues, then you need to get life insurance coverage today.

How To Find Coverage


Around 71% of Freelancers find their work online; it only fits that you would want to buy your life insurance online.


The best places to find life insurance will honestly depend on how you want to shop for it.


I think a freelancer will only need term life insurance, so below is information on how to find it online.


If you want a consumer-facing option that allows you to go only, quote yourself and buy online all without an agent then check out my site Simply Insurance; we focus on a more direct and digital way of the life insurance buying process.


If you would prefer to get several quotes from specific companies and have a few agents reach out to you, it’s best to go with places like Policy Genius or Term4Sale.


If you want more of a personal touch, then you want to reach out directly to an independent agent like Chris from Insurance Blog By Chris.


Finally, let’s not forget about reviews for specific products like this one here.


Reviews will give you the best idea of how specific products work and the most information in one place about the company.


Since term life insurance is regulated when it comes to pricing, all of the above options are a great way to find coverage; it's going to come down to which approach works best for you.


None of the places above can give you a better price for the same product.


However, none of the above sites represent all of the same carriers.

Take Action Now


Right now is the best time to get covered because there are all sorts of new Fintech and Insurtech products in the market.


This makes the rates for specific products cheaper and also makes the whole buying process faster.


In the past, it could take up to 3 months to get approved for life insurance by the time you submitted your life insurance application.


Now, there are cheap life insurance policies that can cover you in minutes or days.


We live in a Freelance society and want to have our freedom and flexibility, however, if we leave this world today, we need to make sure our family is left in good standing.


Get you some coverage today; Don’t Wait!


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Scott W. Johnson
Marindependent Insurance Services LLC - Mill Valley, CA
Insurance Broker-Agent

Thanks for the great article Matt.

It is so important for most parents to have life insurance and even families that do not have kids can do well by purchasing a simple and affordable policy for the breadwinner.

Scott W Johnson

Whole Vs Term Life Insurance.com

May 16, 2018 12:29 PM #1
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