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Life Insurance Coverage Trends for Freelancers

Life Insurance Coverage Trends for Freelancers

Life Insurance Coverage Trends for Freelancers

The trend of freelancing jobs is on the rise, especially among youngsters. This has led to many changes in the professional space. Freelancers are now essentially responsible for their savings and security as against the norm where employers provided the workers with the same.

This shift in career choices is reflected in the type of life insurance coverage options being preferred now by young professionals. In this blog, we will discuss the major differences in the more popular life insurance coverages today compared to the more traditional coverage options.

Shift Towards Individual Policies Over Group Life Policies

Insurance experts vouch that the group life insurance policies till recently were among the most popular option as a majority of the people who are in their 40s and 50s, to date, rely on the life insurance coverage they receive at their workplace. This preference seems to have changed now, with younger professionals opting to buy the life insurance policy independently rather than depending on their employer to get them the right coverage.

According to experts, there has been frenetic activity in the life insurance market in the past year. This activity is more specifically for life insurance application requests by younger professionals, mostly under the age of forty. This proves they put more trust in their abilities to buy the right life insurance coverage and not in their employers’ group life insurance offerings.

Another reason for the dwindling dependence on group life insurance is that today youngsters shift jobs rather frequently, as suggested by Bureau of Labor Statistics data. The data shows that in January 2020, while the median job tenure in the age group 55 to 64 was a high 9.9 years, it was just 2.8 years for professionals between the ages of 25 to 34 years. As it may not always be viable for them to convert group life insurance to individual policies when they switch jobs, they opt for individual policies over group insurance.

How Estimating Life Insurance Differs for Freelancers

The thumb rule to calculate how much life insurance you need is to multiply your annual wages by the number of years your loved ones will be financially dependent on the death benefit of your life insurance policy after your death. This may be easy for people with steady jobs with a regular income, but it can be a little complex for freelancers. Their monthly income is not fixed, so to get an estimate of their annual income, they calculate their average monthly income and how it will increase in the coming years with added skill sets and experience.

You may also get a life insurance policy now and adjust coverage and death benefit amounts later based on your changing needs.

How Americans Buy Life Insurance Today

Earlier, it would take nearly 45 days to get your life insurance activated. However, by keeping up with the times and adopting modern technology, insurers today offer online process application options that can be completed in a few minutes.

Get Comprehensive Life Insurance Plans with Remland Insurance

For more details on life insurance plans, contact our team today. At Remland Insurance Services Inc, we can help you get the right coverage based on your unique job profile requirements.

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