Life Insurance for Contractors
If Uber is your primary source of income than you should seriously consider independent contractor life insurance – especially if you are the sole provider for your family.
Working in the gig-economy is different than traditional employment. Traditional jobs usually offer life insurance as part of a larger benefits package. However, rideshare drivers don’t get access to these (or other employee benefits) because we are classified as independent contractors. Even if you are employed, the life insurance policy offered from your job is often only enough to replace you for a year or so.
We have to build our own benefits package.
You can get a policy for as little as $10 per month with Ladder and they have an online application process that takes about 20 minutes. They even allow you to move up and down in coverage based on your family needs at reasonable rates.
What is life insurance for?
Contractor life insurance will provide a payout upon your death to those you designate as beneficiaries. It offers a strong plan to take care of those who depend on you financially if you die. The payout can be used to pay off your debts or to provide income for your spouse or dependents after the time of your death.
Who needs life insurance?
NerdWallet recommends contractor life insurance for anyone who has loved ones who depend on them financially. This includes working or gig-economy workers, on-demand employees, stay-at-home parents, homeowners who have a mortgage, business owners and others.
We really recommend life insurance for those who have family or dependents who rely on them financially. So if you have a spouse, kid, or family member that relies on you, you should consider life insurance. It’s even stronger for single parents, small business owners, freelancers, and those with a mortgage.
What’s the difference between whole and term life insurance?
Term insurance covers you for a set amount of time and is sufficient for most people. Among the various types of life insurance available, term life insurance quotes are the most affordable.
Whole life insurance pays out no matter when you die, and builds cash value that you can access. However it is usually priced higher and there is a wide variation in the quality of products.
How are life insurance quotes calculated?
Smart mathematicians at insurance companies use life expectancy as a basis for determining your rate. Anything that increases your chances of dying during the policy period will increase the price. Things that shorten life expectancy lead to higher prices. Age, gender, health conditions, smoking status, physical activity, and family history are all taken into consideration.
Quotes for term life insurance range from as little as $10 a month to as high as $300 a month. It all depends on how you want to insure and for how long.