INSURANCE IN THE GIG ECONOMY
When people talk about security you often get different responses but commonly, the answer to that question is financial security. In traditional workplace settings, employees are registered with various insurance services (education, health, housing) that they continue to invest a part of their income in, because they are hoping for security when they eventually retire.
Reasons why Insurance is important:
- Insurance Provides a Measure of Security and Safety
Death is inevitable and unforeseen. Therefore, having yourself covered in time for death is not just financially smart but also helps relieve your loved ones of the burden of thinking where to get money from..
- Insurance Generates Financial Resources
Life insurance brings with it peace of mind, as you know that if something were to happen to you, your family will not be financially vulnerable. Having a back-up plan to have an insurance policy to pay your debts when you pass away is a good thing. Without life insurance, this would likely come out of your estate, which directly impacts your partner and your children.
- Encourages Savings
No quantity of cash will replace your health and the role you play in your family. But having insurance also encourages peace of mind knowing that whatever unwanted events might come in the future, you can have savings to cover any loss and damages.
However promising insurance sounds, this is probably the biggest disadvantage faced by freelancers, working for yourself means setting up all the benefits you used to get through your employer. For this reason, freelancers have a need to get insurance. You may not consider your side job worthy of insurance but it can protect you against liability exposures, such as workplace injury, and can protect you against damage resulting from an accident at your work.
