Life Insurance for freelancers

3 min
Published on updated on

What is Life Insurance?

Life insurance is essential insurance for freelancers as it can replace the employee death in service benefits that you left behind when you decided to go freelance. It will pay out a lump sum on your death to clear a mortgage, pay off any outstanding debts, cover funeral expenses and even provide an income to your dependents to replace your earnings.

There are a number of different options available so your policy can be tailored to your family’s needs and some policies can even be paid for via your company as a legitimate business expense:

Level term assurance

  • Covers you for an agreed period in your life for example, until your dependent children turn 18 or 21.

  • Pays a set lump sum to your dependents that they can then invest to gain an income. It is important to ‘inflation-proof’ this policy so that your dependents receive the agreed amount in line with inflationary growth.

  • Saves your family from being left with your debts by protecting any outstanding debts such as loans or a mortgage.

Decreasing term assurance

  • Pays a lump sum that will be a steadily reducing level depending on when death occurs through the term of the plan.

  • Can be used to provide funds to help settle a repayment mortgage if you die as the level of cover will decrease in line with the repayment schedule on the loan.

Family income benefit

  • Provides a set monthly or annual income over a pre-determined term so that your family will have help with the bills etc.

  • Saves your dependents the hassle of investing a large lump sum and then drawing an income as the policy automatically pays them a monthly income. This can make all the difference in the early days of dealing with your loss.

  • The total pay-out will differ according to how far into your policy you are i.e. if you die early on then the overall payment will be larger than if you claim at the end of the policy.

Whole of life policy

  • Covers you for the whole of your life and is useful if you don’t want a policy to have an end date.

  • The policy can be backed up by investments that build up over the life of the policy to ensure that premiums are kept more manageable as you get older.

  • Prices can be competitive if you take the policy out early and with an investment-linked plan you have the option to take out a cash lump sum if the plan is cashed in before you die.

  • Please note that investment plans can increase and decrease in value throughout the life of the policy.

Why apply through Free-Work?

Free-Work recognised the need to offer our members Independent Financial Advice tailored to freelancers and teamed up with Freelancer Financials to fulfil this need.

  • Freelancer Financials specialise in finding the right insurance to suit your individual needs as a freelancer and aim to provide this essential cover for you at an affordable price.

  • The Advisers can recommend a variety of life cover policies which can be used in various ways to suit your needs.

  • Freelancer Financials are Independent Financial Advisers so they are able to search the whole of the market to find the best cover for your needs.

  • They only work with insurers that have a good history of paying claims and offer affordable cover for the duration of your time contracting.

Free-Work are not authorised to offer regulated insurance advice. Free-Work are introducers to Freelancer Financials.

Financial advice is given by Freelancer Financials, which is a trading name of Mortgage Quest Ltd and is regulated and authorised by the Financial Conduct Authority (FCA). FCA registration number 312484.

By filling in the form above you are agreeing for Freelancer Financials to contact you. For more information on how this data will be used, you can read Freelancer Financials Privacy Policy.

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