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Why Is Life Insurance Important for those Self-Employed?
Life insurance serves as a crucial financial safety net, providing protection and peace of mind for individuals and their loved ones in uncertain times. Its significance is amplified for the self-employed. In this article, we will explore three prominent reasons why life insurance is essential for self-employed individuals, discussing its benefits and why it must become a priority. Ensuring Family and Dependents’ Financial Security Life insurance becomes a must for self-employed individuals, ensuring financial security for their family and dependents in case of an untimely demise. As entrepreneurs, freelancers, or independent contractors, they are often the sole providers for their households. Without employer-sponsored life insurance, their loved ones could face financial hardships if the unexpected happens. To address this concern, the death benefit, a tax-free lump sum paid to named beneficiaries, covers funeral expenses, debts, mortgages, children’s education, and daily living costs. With adequate coverage, self-employed individuals protect their family’s financial well-being, even after they’re gone. Facilitating Business Continuation and Debt Management Self-employed individuals often intertwine personal and business finances, making their well-being dependent on their business’s success. Life insurance plays a vital role in ensuring business continuity. The death benefit can address debts, loans, and financial obligations that might... Read more