Term Life Insurance for Freelancers | The Ultimate Guide

  • Last updated Sep 30, 2018 at 8:14PM | Published on May 2, 2018
  • Richard Reich
life insurance for freelancers

Being a freelancer is now more popular than ever. This is a giant group of people who refuse to get a “real” job. Please don’t misunderstand – this is not a bad thing. In fact, we know that there are more than 53 million freelancers out there that wear many hats. That represents about 34 percent of the total workforce.

These folks are self-employed and do everything from web design, marketing, social media management, home repair, pool installation, and just about any other job you can think of.  Certainly, the Internet has spurred this explosion in the “gig” workforce because the web allows people who work from home to do business globally instead of locally.

Freelancers are at the forefront of an exciting shift in the U.S. economy, an economy that’s adding $1.3 trillion to the national piggy bank. But, as the profile of the American workforce changes, one thing hasn’t – insurance. Being a freelancer makes you on your own when it comes to benefits like health insurance, disability insurance, and life insurance.

 

Even though there are many aspects that freelancers love about their independence, mitigating their financial risks is something that is still confusing – unless you freelance in the insurance and financial planning marketplace. For those who are stressing about benefits, we’re here to simplify the life insurance portion. In this article we’ll cover three common questions that most freelancers have about life insurance:

 

DO I NEED LIFE INSURANCE?

HOW MUCH INSURANCE DO I NEED?

HOW CAN I COMPARISON SHOP TERM INSURANCE ONLINE?

Do I Need Life Insurance?

life insurance for freelancers

To answer this question, we’ll start by asking one; will you ever die? Of course, the answer is simple and you probably just rolled your eyes when you read it. Here’s the thing, when you die, it is going to cost your surviving loved ones some serious money to properly dispose of (bury) your body.

Unless you want to leave these costs to your loved ones or friends, you will need to leave the money to them in some manner that will make sure they can have access quickly in order to pay for your funeral and burial or cremation.

Certainly, the easiest and most cost-effective way to accomplish this is with life insurance. No other way is better and there is no need to debate this. So then, you know you need some life insurance to at least pay for your funeral.

How Much Life Insurance do I Need?

Sorry but the answer to this question is: it depends. The amount of life insurance you need is based on what you want the benefit to do for your surviving loved ones. Most people who want to financially take care of surviving loved ones consider the following:


Loss of Income

If you are the primary source of income for a family, you can leave enough money to pay living expenses for a period of time you think is sufficient, like 5 years.


Current Debt

It’s a good idea to consider the debt your income is servicing and include enough money to pay it off or at least substantially reduce it.


Home Mortgage

Leaving a home for your surviving loved ones makes sense and it will help them through the grieving process.


Education and College Expenses

Unless you know without a doubt that your kids are a shoe-in for scholarship money, it makes sense to anticipate the amount of money they will need for tuition and housing.


Retirement

If your income was used to invest in retirement planning, you should consider leaving funds to make certain your spouse can have the retirement income needed for him or her to retire comfortably.


Final Expenses

As we mentioned above, final expense is the category that is a must to get covered. Final expenses typically include funeral or cremation expenses, and any other lingering medical expenses that are not covered by other insurance.

According to Parting.com, the average cost of a funeral and burial service is somewhere between $8,000 and $15,000. Here is what they have to say about it.

Here is a reasonable “ballpark” estimate of the main funeral costs. It’s important to note that funeral prices vary considerably between funeral homes and geographic areas of the country.

  • fee for the funeral director’s services: $1,500
  • cost for a casket: $2,300
  • embalming: $500
  • cost for using the funeral home for the actual funeral service: $500
  • cost of a gravesite: $1,000
  • cost to dig the grave: $600
  • cost of a grave liner or outer burial container: $1,000
  • cost of a headstone: $1,500

In this example, total costs would approximate $9,000….and that’s just for the “main” items.  There could be additional charges for things like placing the obituary in the newspaper and buying flowers. Read the article

 

You can get help determining your life insurance needs using an online life insurance calculator like the one that LifeHappens.com offers on their website.

 

Okay, I get it. How much is this going to Cost?

This is my favorite part of the article because I get to deliver some really great news. The answer to your “how much” question is 1 or 2 large Supreme Pizzas. That’s about how much you’ll pay for life insurance each month. Here is an example:

Evan is a 30-year-old married male with two children. After using an online insurance calculator, Evan determines that he needs about $1,200,000 in life insurance to take care of his family and pay off his debts which includes his mortgage. Evan is in good health and a non-smoker, here’s how much he can expect to pay a month for a 20-year term insurance policy:

$39.73

About the Same You would Pay for 2 Large Pizzas

 

Life Insurance for Freelancers | Comparison Shopping

If you are a freelancer who is too busy to drop everything and shop for life insurance, consider contacting an experienced and reputable insurance broker like LifeInsure.Com. You can visit their website and get a lot of information that will help make your insurance purchase quick and easy, and most importantly, very affordable.

 

Speak with a Professional
If you are concerned about buying the right amount of life insurance, call us now! We would be delighted to speak with you about your life insurance needs and expectations. You can reach LifeInsure.com at (866) 691-0100 during normal business hours, or contact us at info@lifeinsure.com at your convenience.

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