5 Things Freelancers Should Know About Getting Life Insurance

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Freelancers are in control of their work lives. They follow their own schedules and charge their own rates.

When it comes to managing finances, freelancers have many responsibilities. You are alone when it comes to saving and insurance.

If you’re a freelancer, there are a few things you should know about life insurance.

Can freelancers get life insurance?

Despite what you may have heard, freelancers can certainly get life insurance. Some freelancers have been led to believe that many insurance policies aren’t for them. 

The only truth to is that a freelancer’s options are slightly more limited. But only when it comes to other forms of insurance like short-term disability insurance.

However, it’s still very easy for a freelancer to get a life insurance policy.

Life insurance isn’t linked to an employer in the same way health insurance is. As a freelancer, you have the same access to life insurance as an employee.

Term life insurance should suffice

There are two popular types of life insurance: permanent life and term life. Permanent (whole) life insurance, as the name suggests, lasts for your whole life. Term life insurance covers a set period.

As a freelancer, term life insurance is the simpler and more affordable option. Most people, not just freelancers, are sufficiently and more affordably covered with term life insurance.

Your business debts can affect how much coverage you need

End-of-life expenses vary widely from person to person. For freelancers who are sole proprietors, business debt is one area that your coverage can’t overlook. Make sure your insurance policy covers those liabilities.

On top of business debts, don’t forget coverage for typical personal debts like:

  • Mortgages
  • Car loans
  • Student loans

Your policy’s necessary coverage will depend on your financial situation and your beneficiaries. There is no difference between freelancers and employees in this regard.

The baseline (excluding business debt) is normally a policy for 5 to 10 times your average annual income. As a freelancer, you can just average out your varying income for past years. Then, you can consider not only debts but also healthcare/childcare costs and funeral expenses.

Salaried employees need individual life insurance, too

You may feel singled out as a freelancer. But the reality is that everyone needs individual life insurance as well. Most people in a group coverage policy also need to find private insurance.

Life insurance policies covered by employers typically don’t provide enough coverage. These policies also don’t stick with an employee when they quit and find a new job. Some employees might be able to convert from group to individual life insurance.

If you’re salaried, but considering leaving your job, it pays to shop around for better coverage.

It’s still smart to shop around 

If you have a group insurance policy and you’re thinking of converting, you will have to pay the full cost of its premiums. If you’re not very old or unhealthy, you can likely find a much better policy.

When you shop around, you can make sure you get the best policy for you. You can often get the exact coverage you need while still paying less. The best time to get life insurance is today, while you are younger and healthier.

The life insurance marketplace is large enough for you to find what you need. When you compare policies and rates across the market, you’ll find it pays to shop around.


Freelancers don’t need to any worry more than salaried employees about life insurance. Having an employer may make many things easier. But life insurance is easy to find regardless of how you get paid. Freelancers don’t sacrifice access to life insurance in their pursuit of freedom. Even if you’re a salaried employee, it pays to shop around for private life insurance. Have a look at your current group insurance policy. Then compare it to the many policies on the market. If you’re considering leaving your current employer anytime soon, it’s best to plan ahead.

Read Next: 18 Simple Ways To Be More Productive As A Freelancer

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