Thinking of starting your own business? You’re not alone. The age of the entrepreneur is in full effect.
According to Census.gov, over 5 million new businesses were registered in 2021. Given that it typically takes some time to get the plan off the drawing board and into real world application, we can only assume that number is probably much larger now as 2022 winds down.
With the rise in outsourced services and website builders that make creating an online presence much simpler than even the last decade, if you have an idea worth pursuing, it’s easier than ever to begin your own journey as an owner/operator.
There are plenty of hurdles in the way, and at the end of it all, it takes will and perseverance to succeed.
When you are self-employed though, one of the things you may not consider right out of the gate is how this will affect your life insurance.
My Employer Provides My Life Insurance, But Now I’m Self-Employed?
If you work for yourself, whether as an owner, operator, freelance, or contractor, you still need to cover your bases with life insurance. To parallel the rise in self-employed individuals, there’s an equally rising number of options to consider for your life insurance needs.
Many who come from retail, service, and corporate work are used to having a handful of options to choose from provided by their employer, which is either partially or wholly covered. But as they transition to freelance or owning their own business, they can realize very quickly just how much noise you need to wade through.
Fortunately, life insurance experts like Low Cost Life Insurance can help you navigate these waters and come out of it better educated with a solid plan for the future.
Planning For Life Insurance Differs for Self-Employed People
Life insurance planning typically aims to consider 10x of your annual income. This can be a little tricky for self-employed individuals, as their incomes, especially when starting out, can wildly fluctuate.
Luckily, the template for this formula has become more readily available, taking cues from commission based salaries. Most recommend looking at average earnings to help determine that yearly accrual.
Even still, there’s an advantage for self-employed individuals to consider a plan that allows for adjustment with time, such as term life insurance.
Challenging Traditions, Young Entrepreneurs Seek Instant Results
Typically, getting approved for a life insurance policy can take weeks. In the faster paced, tech-savvy world of today, younger people entering this pivotal time in their lives are looking for instantaneous approval.
Many insurers are answering with online applications and even 24-hour policy turnarounds when applicable. If you’re looking for a quick response, those will be most beneficial to you. However you should still consider your overall coverage goals regardless of the plan you choose.
If you’re an emerging entrepreneur, contract worker, or freelancer, and want to learn more about the best choices for you with term life insurance, get in touch with the LCLI team today! 1-877-794-TERM (8376)