Why Insurance Is a Must-Have For Freelancers

More and more millennial are rooting for freelance careers. The autonomy to choose projects as and when you like it and the creative freedom one gets while working on freelance projects is cherished by the younger generation. Looking at the success of freelance gigs, professionals in their mid-careers are also stepping out of the traditional glass doors and following the freelance suit.While the freelance life is exciting, one must also consider all the risks that come with it. Possibilities of not getting paid enough or not getting paid on time are always hovering around. To secure yourself and build a robust backup fund, freelancers need to save more than people who have full-time employment. Apart from saving they also need to take care of their insurance on their own.

One of the perks of being employed with a full-time job is that you get insurance and an EPF account. Both these arrangements secure you from any financial burden in times of unforeseen events. However, when you are freelancing, you have no employer, and you must take care of these things on your own. Hence, secure yourself and your loved ones with either a term insurance plan or pure life insurance . If you have started saving for retirement, endowment plans and money back, plans will give good returns over a period.

Freelancers often don’t have a continuous stream of income. Some months they might earn just enough to survive while for a few others the bank balance in the account will shine and rise. However,
don’t let your financial volatility affect your insurance cover even if that means paying a premium that might take up a considerable portion of your income. Don’t take an insurance policy with lower coverage to save up on premium amount. Calculate how much financial security you need and get apt insurance coverage for yourself.

Check out all the policies that let you claim exemption on your taxable income. As a freelancer, you end up paying more tax than a salaried employee. Hence, you must not miss out on such lucrative opportunities to save tax.Life of a freelancer involves juggling a lot of hats at the same time. Therefore, it can get quite stressful at times. Getting insurance will bring some relief in the heat of such an unpredictable professional life.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.