Top Four Reasons To Have Insurance If You Are Self-Employed
As a self-employed individual, it can be easy to overlook the importance of personal insurance.
After all, you’re your own boss and have the freedom to make your own decisions.
But the reality is that personal insurance is crucial for protecting both you and your business in the event of unexpected circumstances.
In New Zealand, there are a variety of personal insurance options available, including health, life, and income protection insurance.
Here are some reasons why it’s important for self-employed individuals to consider investing in personal insurance.
1. Protection for Your Health and Wellbeing
As a self-employed individual, you don’t have access to the same benefits and support that employees of a company may have. This includes things like paid sick leave or access to an employee wellness program. If you were to become sick or injured and unable to work, you may struggle to cover your living expenses and medical bills without personal insurance. Health insurance can help cover the cost of medical treatments, while income protection insurance can provide a safety net in the event that you’re unable to work due to an illness or injury.
2. Financial Security for Your Family
If you have a family, it’s important to consider how they would be affected in the event of your unexpected death. Life insurance can provide financial security for your loved ones in the event of your passing. This can include paying off debts, covering living expenses, and providing for your children’s future. Without life insurance, your family may be left struggling to make ends meet during a difficult time.
3. Protecting Your Business
As a self-employed individual, your business is your livelihood. Without personal insurance, your business may be at risk if unexpected circumstances arise. For example, if you were to become seriously ill or injured, you may be unable to work, resulting in a loss of income for your business. Income protection insurance can help cover your living expenses and keep your business running smoothly during a difficult time.
4. Peace of Mind
Ultimately, investing in personal insurance provides peace of mind. You can rest easy knowing that you’re prepared for unexpected circumstances and that you and your family are financially protected. Personal insurance can also give you the confidence to take risks and pursue your business goals without the fear of financial ruin in the event of an unexpected setback.
In conclusion, personal insurance is a vital consideration for self-employed individuals in New Zealand. It provides protection for your health, financial security for your family, and can help keep your business running smoothly in the event of unexpected circumstances.
While it may be an additional expense, the benefits of personal insurance far outweigh the costs in the long run. So if you’re a self-employed individual in New Zealand, take the time to explore your personal insurance options and invest in your future.
Jonathan Whorwood
Financial Adviser
The Insurance Supply Co Limited