There are lots of perks about working as freelancer, contractor or gig worker. You may be able to set your own schedule, or have the flexibility to choose the projects or gigs you take on.
The flip side to that independence and flexibility is that you might not have some of the perks that can come with a more traditional job, like workplace benefits and insurance.
Think about it: If you don’t have dental coverage through a workplace, how would you pay for a major dental procedure? What would you do if you suddenly weren’t able to work? How would your family cope financially if you were to pass away and they didn’t have the income from your business?
Fortunately, being your own boss doesn’t mean you have to live without the protection these kinds of products can offer to you and your family.
There are many options available – including private health insurance – that freelancers, gig workers and contractors can use to help fill some of the gaps that can come from not having a traditional employer coverage.
Exactly how much insurance you get is a personal choice and comes down to your individual situation.
A freelance hair stylist might want to prioritize private health and dental insurance so they can visit a podiatrist since she’s on her feet working all day, or visit the dentist for regular cleanings.
A cartoonist with 3 kids who works from home knows life insurance is a good option. He might not think he needs disability insurance because he has a desk job...until he realizes that according to the Society of Actuaries, 1 in 5 Canadians will become disabled for 90 days or more before age 65.
Here are some of the coverage options and types of insurance you might consider if you’re a freelancer, gig worker or contractor.
Private health and dental insurance
When you work for yourself, there may be no paid sick days. This means that prioritizing your wellbeing can be more important than ever.
Or, if you work in a job that takes a physical toll on your body, you might appreciate things like massages, physiotherapy and acupuncture. These may be helpful in ensuring you’re not missing work due to injury or strain.
Private health and dental insurance can help cover some of the common costs that aren’t covered by government healthcare.
This could include routine expenses like dental check ups, prescription medications, and contact lenses or glasses.
It can also offer coverage in areas that might be beneficial for freelancers, like mental health professionals who can help you find coping strategies for the stress of running your own business.
Disability insurance
Disability insurance works when you can’t. If an illness or injury keeps you from working, disability insurance can give you a tax-free monthly benefit to help you pay your expenses by replacing some of your earnings.
Crucially, disability insurance can help cover injuries or illnesses that aren’t related to a workplace accident and might not be covered by worker’s compensation.
For example, it could potentially cover:
- An artist who spends months recuperating from a car accident.
- A carpenter who breaks an arm while skiing and can’t work for 8 weeks.
- An overworked delivery driver who can’t work after a heart attack.
You can also tailor disability insurance to your needs and budget.
Critical illness insurance
This is a lump sum amount that will be paid out if you’re diagnosed with an eligible serious condition.
You can spend this money on whatever you like. As a freelancer or gig worker, that could mean help covering your lost income so you can focus on your recovery, or helping you avoid having to sell any of your equipment to pay bills.
It can also be a good way to help supplement any disability insurance you have.
Life insurance
Have kids? Own a home? Thinking about getting married? Have people who depend on your income?
It could be worth considering life insurance.
There are a few kinds of life insurance you could look at.
Term life insurance
Usually more affordable, term life insurance is valid for a specific term, like 5, 10 or 20 years. Canada Life My Term™, for example, offers great flexibility by allowing you to pick a term length from 5 to 50 years dependent on your age that will automatically renew until your coverage end period. Get a quote to see how much it could cost each month.
Permanent life insurance
It’s guaranteed lifelong coverage that helps provide financial protection for the people you care about. But it’s more than just insurance when you die. Over time, some policies can build cash values that you may be able to access for cash during your lifetime, with certain tax implications
Key person insurance
If you have business partners, key person insurance is life insurance that is set up to benefit the business if you pass away. It can help your partners manage in the short term without your contribution and possibly pay for hiring your replacement.