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Background ImageWhy You Need Income Protection Insurance As A Gig Worker

Why You Need Income Protection Insurance As A Gig Worker

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min read
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Mar 22, 2022
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Written By:
Patricia Opsima

Being a Gig Worker may seem like an easy task, but in reality, it isn’t. Most of the time, being a part of the Gig economy includes hardship, especially finding clients or customers to sell your products to or simply providing the service they possibly need. Convincing a client as a freelance worker can be difficult, especially if you’re a beginner in the Gig economy world. A Gig Worker has pros and cons, such as working anywhere and anytime! You can also decide what to work on and not just stay in one lane, though the cons of being a freelance worker would be socializing less. Nonetheless, being a freelance worker can teach you discipline, and you can even learn more from it!

As a Gig Worker, you should know what you essentially need, even when it comes to financial terms. Being a Gig Worker and protecting your income can be tricky since there are no sick pays and no income consistency. According to Great Eastern Life, the best time to get insurance can be anytime, but it would be better if it’s sooner than later. Some benefits of Income Protection Insurance are the following.

  • Income Insurance replaces some of your income if you can’t work during bad weather or if you’re experiencing other illnesses.
  • It pays out until you can work again.
  • Hospitalisaton pay-outs

But suppose you’re wondering about the differences between Income Protection and Life Insurance. In that case, Life Insurance pays a sum of cash if you pass away or if you’re diagnosed with a terminal illness. On the other hand, Income Protection Insurance can pay a death benefit in the event of the policyholder. The main goal of Income Protection Insurance is to protect your income even if you aren’t around working. Here are some more reasons why you need income protection insurance as a gig worker:

  1. Having enough to get you through
    Having Income Protection Insurance can help you get through the day if there’s an immediate need for money. Such as paying for sudden repairs and the need to buy some food if you don’t have any food stored while trying to recover from a natural crisis like flooding and experiencing blizzards if you’re nearby New York or Colorado. Having backup money is an important thing a gig worker should have!
  2. Incomes can help you cover incidents.
    According to Great Eastern Life, having Income Protection Insurance can help you cover some accidents and hospitalization such as surgeries and other medical-related expenses that might happen. According to ebn, insurance can also cover musculoskeletal disorders, pregnancy, mental health issues–such as depression and anxiety–and injuries!
  3. It can be customized.
    Protection Insurance can be customized according to your needs, though if you are a beginner, the first step in Income Protection Insurance is to prioritize your health. In that way, you can pay your medical bill without any worries if you get into an accident or just want to maintain a healthy lifestyle via check-ups with doctors at the nearby hospital.
  4. You can still have money even if you don’t work.
    There are times that people will push their limit to the point that their bodies won’t handle any more exhaustion. According to HealthLine, losing rest can decrease your immune system and increase the risk of gaining weight, even car accidents!

Additionally, when you have Income Protection Insurance, you don’t need to worry as your savings won’t be at risk as long as you have Protection Insurance. Income Protection Insurance is most likely necessary for self-employed people or Gig workers than those under a specific company name. According to Anorak, there are also risks of not having Income Protection. An example is not keeping up with the cost of living if you lose your income to an injury or illness. Especially if your family relies on your revenue, losing money on your savings can also affect relationships if you don’t have Income Protection insurance. 

It is crucial to be prepared with or without experiencing a crisis in your life and surroundings. Being financially prepared can help you get through some unexpected things in your life like accidents, hospitalization, and or injuries. Having Income Protection Insurance can also bring you peace of mind and peaceful relationships with your partner and children because they know that your money is protected. You can help them or yourself when something disastrous happens without even expecting it. 

Key Takeaway:

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Having Income Protection Insurance as a Gig Worker can help you reassure yourself that your income is not at risk but rather, it is protected even if you don’t work yourself too much or push yourself to your limits. It is also an important reminder that planning out your life can play a significant role in your life since you would know what step or goal you should be heading next.

Patricia Opsima

SEO Specialist
Gig Work

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