Importance of Life Insurance for Self-Employed

Seema, an ambitious woman, opened the publishing company that she had dreamed about since she was a small kid. She hired the staff, published magazines and soon took her small company to great heights. But, unfortunately, cancer knocked on her door and she was left hopeless. Her kids struggled with their education and her husband had to spend all his salary and savings on Seema’s treatment. Soon, the publishing company that Seema had opened started incurring huge losses and was on the verge of being shut down.

As Seema lay on her hospital bed, fighting between life and death and contemplating the decisions of her life, her mind wandered to the conversation that she once had with her friend many years ago. Her friend had suggested her to opt for life insurance and Seema waved her off, saying that she will think about it in the future. But, now it was too late. She never got around to invest in life insurance because she was too busy managing her company and the consequences had to be faced by her and her family.

We all can learn from the mistakes Seema made and realize the importance of having life insurance. With pandemic refusing to leave any time soon, it is all the more important to invest in a good plan that would save your family in your absence.

Life insurance is important for everyone, but it is all the more important for the ones who are self-employed. The reasons are as follows:

  • Unstable Revenue and Income:With the responsibility of paying salaries and dues of those working under you, a self-employed person often has to face difficulties in managing their overhead expenses. With the income source not fixed, it is all the more important for them to invest in life insurance so that they are able to meet the expenses without burdening themselves.
  • Not Enough Enough Savings in Case of Medical Emergencies: Unlike the medical incentives that employees enjoy, a self employed person has to manage everything on his own. A sudden medical emergency, like the one Seema had to face, can deplete your savings in the blink of an eye. But, with the benefits of medical coverage provided in the life insurance plan, you will save tons of money. This benefit not only covers the monetary medical expenses but also urges you to have regular medical check-ups.
  • Loans, debts and liabilities: To set up your business, you must have the burden of working capital and other kinds of personal loans on your head. These loans and debts, when left to be accumulated, can create a massive pile of burdens on you. This can affect your lifestyle. But with life insurance, you can make sure that these debts and liabilities don’t affect the lives of those you love when they are left alone.
  • Lack of employee benefits: As you are your own boss, you are left with no incentives that an employee receives, like health and insurance covers, paid sick leave, bonuses etc. This leads to even less savings for medical, education and marriage purposes. A need for life insurance becomes the need of the hour in this case so that whenever you receive the profits, you can reinvest it and enjoy the benefits that you lack as a self employed.
  • Burden of both household and business:  As a self-employed, you have to take care of the financial expenditure of both your business and your home, which can be troublesome. In that case, opting for life insurance can be a smart move.

Future is not in any of our hands, but the decision of securing it is definitely in none other than our own hands. Seema made a mistake of delaying investing in life insurance and her family had to suffer the results. But you have the chance and opportunity to amend her mistakes and make sure that your loved ones can carry on their lives comfortably even when you are not around to support them. Get in touch with me to know more. I will be happy to assist in the best possible way.



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