What Freelancers and Entrepreneurs Need to Know About Life Insurance

Being your own boss is a lot of responsibility. If you’re a freelancer, you’ve likely thrived on having the freedom to make important decisions. And a key part of business planning is developing a well thought-out strategy for the future. With kids in the mix and mortgage payments too, you may be wondering what kind of life insurance coverage you need.

Entrepreneurs like yourself may not have a benefits package with health insurance coverage or the kind of life insurance policy that comes with being a full-time employee. And because freelancing is such a unique lifestyle, we’ve put together these tips to help you navigate your way to the right policy that protects your family and their financial future.


Why Life Insurance for the Self-employed Is a Good Idea

Life insurance can help safeguard the financial future of everything you’ve worked so hard for. American Family Life Insurance Company offers several types of life policies, many that work quite well with the needs of freelancers. Because your family depends on the income that you provide, a life insurance policy helps provide the funds to keep your family thriving if you were to pass away.

Here are a few ways a life insurance policy could work for you:

  • The life policy can help provide funds to offset funeral expenses
  • The life policy may help pay for the education of your children
  • Your life policy can help provide income replacement funds to help keep your family financially stable

What’s the Right Life Insurance Plan for You?

You’ll have a few choices to make as you begin to explore your life policy options. First off, you’ll need to get familiar with the types of policies available. Next, you’re going to need to select a coverage amount that meets your needs and fits your budget.

There are two main types of life policies:

Temporary (term) life insurance. Term life insurance is a life policy at its simplest. Pay a monthly premium for the length of your policy term, and your family can have some financial protection for a set period of time.*

Permanent (perm) life insurance. These policies typically offer lifelong protection. Unlike term insurance, permanent life insurance policies gain cash value and allow you to take loans from them.*

Term Life Policies

Designed to be active for a given period of time, term policies allow you the flexibility to pick the amount of coverage you want for a period of years. If your kids are still young, you may want to go with a 20 or 30 year term policy to be sure they’re protected until they’re able to manage financially.

If you were to pass away during the time your policy is active, your beneficiary will be able to receive the benefit, given that the premium’s paid. Term policies are great for long-term, but temporary coverage that helps your beneficiaries when they may not be able to help themselves.

American Family Life Insurance Company offers a few options for freelancers and entrepreneurs seeking a term policy.

DreamSecure Term Life. Available in 10, 15, 20 and 30 year intervals, the premiums and benefit amount stay the same for entire the term you choose.1 It’s a great, customizable policy2 that can be crafted to fit the needs of your family and your career lifestyle.*

DreamSecure Simplified Term Life. Just like it sounds, this policy is more straightforward. Simply answer a few medical questions to help determine your eligibility, and affordable coverage for freelancers can be that easy.*

Permanent Life Policies

Here’s what you need to know about permanent, whole life policies:

Whole life insurance. Whole life insurance is exactly what it sounds like — protection for your whole life. This means you’re guaranteed3 permanent life insurance coverage4 and your beneficiaries will receive a death benefit regardless of when you pass away.

Get in Touch With Your Agent Today

As you’re exploring a life plan that fits your budget and career choice5, be certain to take time and reach out to your American Family Insurance agent to discuss your life insurance options. 6 You might be surprised at how easy and affordable life insurance coverage7 can be. We’ll help you through the process so you’ll have peace of mind — knowing you’ve protected your loved ones’ financial future.*

1Subject to policy and rider terms and conditions, including items like plan minimums and timely payment of premiums.
2Policy Forms: ICC18-33 (10), ICC18-33 (15), ICC18-34 (20), ICC18-35 (30), L-33 (10)(ND), L-33 (15)(ND), L-34 (20)(ND), L-35 (30)(ND), L-33 (10)(SD), L-33 (15)(SD), L-34 (20)(SD), L-35 (30)(SD)
3Subject to policy and rider terms and conditions, including items like plan minimums and timely payment of premiums.
4Policy Forms: ICC18-36 (10), ICC18-36 (15), ICC18-36 (20), ICC18-36 (30), L-36 (10)(ND), L-36 (15)(ND), L-36 (20)(ND), L-36 (30)(ND), L-36 (10)(SD), L-36 (15)(SD), L-36 (20)(SD), L-36 (30)(SD)
5Subject to policy and rider terms and conditions, including items like plan minimums and timely payment of premiums.
6The information described on this page is subject to policy terms and conditions. The Guaranteed Purchase Option may be exercised only at specified dates and life events and is subject to benefit amount limitations. See policy for additional details.
7Policy Forms: ICC18-33 (10), ICC18-33 (15), ICC18-34 (20), ICC18-35 (30), L-33 (10)(ND), L-33 (15)(ND), L-34 (20)(ND), L-35 (30)(ND), L-33 (10)(SD), L-33 (15)(SD), L-34 (20)(SD), L-35 (30)(SD),ICC17-225 WL, L-225 (ND) WL, L-225 WL, ICC17-226 WL, L-226 (ND) WL, L-226 WL, ICC17-227 WL, L-227 (ND) WL, L-227 WL, ICC13-97 UL, L-97 UL (AZ, ND, SD only)

*Disclaimer: Any loans taken from your life insurance policy will accrue interest. Any outstanding loan balance (loan plus interest) will be deducted from the death benefit at the time of claim. If the loan balance grows too large for the cash value to support it, the policy could terminate.


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Related Topics: Insurance Terms , Insurance Needs , Whole Life , Term Life , Buying Life Insurance