There has, in recent years, been a huge rise in the number of people who choose to work for themselves rather than seeking conventional employment. There are now more self employed people and ‘micro’ businesses (businesses consisting of only one or two people) than ever before, and it is a trend that doesn’t seem likely to reverse as more and more people see the appeal of managing their own time, and using their own talents and skills to make money.

Whether you work as a freelancer doing various types of consultancy, technical or creative work, you work in a trade on a self employed basis, or you have your own business selling products, when you are your own boss you depend only on yourself to get things done and bring in the money you need to live the lifestyle you are used to.

Managing your own financial security

This is definitely something many people prefer to working for a company, however, without the benefits that tend to come along with employment contracts, like health insurance and a death in service benefit, it becomes completely down to you to prepare for any circumstances where you can no longer bring in your income – whether for a short period due to illness, or permanently because of a career ending health problem or death. This means the question of whether or not you should invest in a life insurance policy can be a very important one.

Dependents and commitments

One of the main factors in considering whether, as a freelancer or sole trader, you need life insurance, is your current financial commitments and whether you have any dependents. If you own your home and have a mortgage, or have any other significant debts that would be passed on to someone else should you die before they are paid off, then life insurance will make sure that your family will not be landed with unmanageable debt in this event. This makes insurance something of an essential.

If you have children who you provide for, the life insurance is also a very good idea, as should you die they will no longer have your income to sustain them. This is the case even if your partner works and provides more of the household money than you do – if you work from home and look after the kids while you do it, they would be faced with childcare costs or need a change in working lifestyle to cope if you were no longer around to do this, and a life insurance pay out would make this far easier.

For people who are single or in relationships where their partner has their own reliable and adequate income, with no children, living in rented accommodation and with no significant debt, life insurance is less of an essential, however it can still be worth considering. Starting a policy now may mean cheaper rates later on when you do have children or a mortgage, and will also give you the peace of mind of knowing that should anything happen to you, your partner, your parents or whoever else you care about will have money for things like arranging your funeral.

Choosing the right life insurance cover

There are all kinds of different life insurance policies available in Canada. If you have decided life insurance is something you definitely need to protect your family in the event of your early death, then you should begin by researching the different options available to you, and comparing quotes from insurers who can provide something that suits your needs and circumstances. The amount you will have to pay will depend on a lot of factors, including the style of insurance you choose, your age, lifestyle, and the amount you would need the policy to pay out, so the more you know about your needs before you begin getting quotes, the better.

Shopping around for a good deal is now easier than ever before thanks to the internet, so you can do all kinds of comparisons and look at all kinds of different policies without needing to book an appointment with a financial advisor or broker. Of course, if you feel you need more advice, this is always still an option for you.

For some self employed people life insurance is an essential in safeguarding their family’s future. If this is the case for you and you are not currently covered, now is the time to act!

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