Insurance options for the self-employed

A lot of people find the idea of being their own boss appealing. Before you strike out on your own, though, it’s a good idea to assess your situation carefully and figure out what self-employment would mean for you in terms of finances, taxes and insurance. That way you can forge ahead with confidence, knowing you’re on solid ground.

The flexibility of being self-employed

Many women say that it was the better work-life balance and flexible hours that led them to become self-employed. The independence and freedom are also undeniably attractive for workers age 55 and over, many of whom are often looking to avoid dipping into their savings and facing penalties for withdrawing pension funds too early.
Being self-employed may give you more flexibility in terms of your schedule, but you’ll probably still have to meet tight deadlines on a tight budget. You’ll need to be highly disciplined. In other words, being self-employed may seem like the answer to all your problems, but it’s important to weigh the pros and cons carefully first. There are two main advantages and disadvantages to both self-employment and working for someone else. Being self-employed isn’t for everyone.

The pandemic and the decline in self-employment

The public health crisis of the past two years forced many self-employed workers to rejoin the corporate ranks. CBC News reported in a recent survey that by December 2021, 300,000 of the 2.9 million Canadians who were previously self-employed had given up the gig, bringing the number to its lowest point in a decade. In New Brunswick, however, self-employment is still the main source of income for more than 1 in 10 people.

Getting the right coverage to avoid unpleasant surprises

Anyone considering self-employment should consider offering themselves the coverage usually provided by an employer. Whether it’s for disability and critical illness insurance or life insurance, take time to weigh your options and choose coverage that will help you sleep at night.

DISABILITY INSURANCE FOR EVERYDAY PEACE OF MIND

Your life can change in the blink of an eye. By opting for disability insurance, you’ll ensure that you’re covered in the event of an accident or illness that would prevent you from earning income in the short, medium or even long term. This type of insurance generally provides up to two thirds of your basic income if you’re unable to work.
Explore your options with your advisor to find out what’s best for you.

PRECAUTIONS THAT PAY OFF IN CASE OF SERIOUS ILLNESS

With critical illness insurance, you’ll receive money in the event of a cancer diagnosis or heart attack, for example. It covers nearly 30 illnesses and helps the insured meet their needs if their health prevents them from taking on a full workload or working altogether. Having that kind of coverage allows you to focus on your recovery without worrying about your finances.

MEDICATION AND EXTENDED HEALTH CARE

Supplementary health insurance is for medical expenses not covered by government plans. Dental care and other professional services like massage therapy and physiotherapy can be costly. If you don’t have access to a family plan through a life partner’s insurance, supplemental health insurance is a great way to go.
Insure your equipment
A review of your home insurance coverage is in order, especially if you work from home. A home insurance policy usually covers the use of professional equipment up to about $2,000. To make sure that’s enough, calculate the value of your equipment, whether it’s computer equipment, work tools or anything else you use to do your job. If something happens, you’ll be more than glad you amended your insurance policy.

TRAVEL AND CAR

If you’ll be using your car for work purposes, be sure to let your insurance advisor know. It’s best to have car insurance that covers the cost of a rental vehicle in case of an accident, especially if you meet customers or suppliers for work on a regular basis.

Personalized support from an insurance advisor

By now you should have a better idea of how to protect your most valuable asset: yourself. At UNI Insurance, our advisors are there to support you and help you find the best coverage for your needs. Connect with us so you can focus on making this new phase of your career everything you want it to be!