Why is Life Insurance Important for the Self-Employed?


It was Alexander Pope, who once said,
“Blessed is the man who expects nothing, for he shall never be disappointed”

The above quote is proven to be true for interactions we have with people but following Pope's guidance for handling critical situations revolving around finance might not be wise.

Let us figure out why this is so.

Let us take an instance of Ramya, who decided to break free from the shackles of a corporate job to start something of her own as a self-employed woman. I believe we all have a Ramya in our lives.

But the risk of self-employment is that almost all self-employed induviduals find themselves bound and restricted in their experiments with new courses in life because of the probability of losses, Isn’t it?

However, in this case, Ramya was more than astute to not fall into the web of investments and debts. She didn’t want to risk her own money and agonize about the future uncertainties that could pertain in life. Hence, she invested in insurance policies to cover her and her family as a self-employed induvidual.

We all indeed have a Ramya with a heart of ambition in our lives. If you are a Ramya or are aspiring to be one, you know what you should do.

A few steps she undertook to do so are:

  • She decided on the tenure of the life insurance policy to opt for her requirements.
  • She looked into the policies that offer death benefit acceleration during high medical expenses due to adverse conditions.
  • She focused on applying for premium plans. These offered temporary insurance for her and her family in case of the failure of her business.
  • She invested in securing retirement schemes offered by life insurance that would provide her a monthly stipend even after retirement. This would ensure financial stability at all times.

It was wise of Ramya to take into account the uncertainties such as irregular sources of income and the unnerving expenses for her daughter in case of any risk to her health. If not, her life would have been a troublesome journey of fear with a spine-chilling dread of the unexpected. Therefore, structuring proper solutions by expecting outcomes are the essentials that act as a layer of protection during the stormy times in our lives.

A few key pointers for you to keep in mind to understand the importance of insurance for you as self employed are:

  • Moderation of variable income

    One of the factors that shed a limelight on the risks of self-employment is the variable income generated. There is a requirement for you to moderate this income using insurance plans to sustain a stable investment for you and your family. Opting for life insurance will open the door for you to designate short premium plans that will function as a cushion for you and your family by providing a monthly source of monetary assets in times of downfall.

  • Risk protection for self-employed individuals

    There is an array of insurance schemes dedicated to individuals who carry on a career of self-employment. This is majorly important if any risk befalls you. In such unfortunate cases, life insurance will help to relieve your nominee of some of the financial burdens that fall on their shoulders. As an individual who is not working under the umbrella of financial protection offered by a company, investing in long term stable insurance policies is the way to go for you.

  • Managing with no employee benefits

    Working in a corporal atmosphere provides the employees with vast benefits which include life insurance covers for the employees and their families but this is not the case if you are a self-employed individual. When it comes to being your own employer, the herculean responsibility of ensuring the safety of your business and your family lies solely on the profits of your business and personal investments. An efficient life insurance policy will aid you in regards to obtaining your financial goals through guided investments to procure the most out of your outlays.

To conclude, being self-employed comes with its own share of risks, uncertainties and anxieties. Being your own boss is not easy. Therefore, you need to be well adept at handling the challenges and dealing with them courageously. Invest in yourself and the life you want by investing in life insurance. Get in touch with me to seek the right assistance and I will be happy to guide you in the best possible way. So, what are you waiting for?