Life insurance for independent workers.

Quick Links:

• Common Questions About Life Insurance

• Life Insurance Types

• Life Insurance for the Self Employed

• Common Questions About Life Insurance Coverage

• Life Insurance Beneficiary Overview

COMMON QUESTIONS ABOUT LIFE INSURANCE

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WHAT IS LIFE INSURANCE?

At its core, life insurance is about helping to protect your family and loved ones. In the event of a premature death, your life insurance policy can help secure a stable financial future for your family. The life insurance benefit, known as the death benefit, is paid to your beneficiary, often in a lump-sum payment. Sure, life insurance is a little unsettling to think about, but it actually may help bring peace of mind knowing your family will receive financial assistance whether you are there or not.

Learn More: – Life Insurance Common Terms and Definitions

HOW DOES LIFE INSURANCE AFFECT LOVED ONES?

Let’s talk hypothetically. If you were to pass away, how would your family fare? They likely would not be able to rely on your income as an independent contractor or self-employed worker, and they may even owe money on any personal loans you took out. In this hypothetical situation, let’s assume you purchased life insurance. Phew — your family can feel comforted knowing they have the financial support to help with their finances.

If you are a small business owner, life insurance becomes even more critical. Your family may have to take over the business or coordinate with business partners about how it is run. The death benefit can serve as a financial cushion as your family navigates its new reality. If your family cannot run your business, the death benefit can buy some time for your family to make decisions about selling your business or finding another solution.

Then, as a small business owner, there are the questions of loans, real estate, or debt connected to your business. Sometimes, small business owners use personal assets as collateral for their loans, which means that these assets are at risk if your family can’t pay off your loans. It can be difficult to imagine, but these problems happen to many families who opt not to take out life insurance. As family members grieve the loss of a spouse, parent, sibling, or child, they are often forced to make tough decisions while in a stressful state, because they’re not financially equipped to keep everything operating in your absence.

Learn More: – How Does Life Insurance Work?

WHEN SHOULD I GET LIFE INSURANCE?

Life insurance is a type of freelancer insurance that you should get when you are young and healthy. That’s because the younger and healthier you are, the lower your premiums are going to be.

Isn’t paying for life insurance in my 20s throwing away money?

Nope! Instead, it would be best if you thought of it as locking in a lower premium to take advantage of the benefits of life insurance. Remember, as your age and health risks rise, so does the amount you will have to pay for your premium.

Learn More: – How Does Life Insurance Work?

DO I NEED LIFE INSURANCE?

Do you have loved ones that depend on your income? Do you want to ensure someone gets helps financially if you pass away? If you answered yes to either question, then the answer is yes – you need life insurance.

Learn More: – How Does Life Insurance Work?

SHOULD I GET INDIVIDUAL LIFE INSURANCE IF MY EMPLOYER PROVIDES IT?

More than likely, yes. If your employer-sponsored life insurance policy is tied to your employment with the Company, you will probably lose your coverage if you leave. Also, depending on how long you have worked for your employer, the cost and your eligibility for a new policy may have changed by the time you leave. Your age and other factors determine how much a new policy would cost and if you qualify for a new policy. Getting an individual policy now helps protect you from the risk of losing coverage and potentially from paying more for a new policy if your employment situation changes.

Learn More: Individual vs. Employer-Sponsored Life Insurance

HOW MUCH DOES LIFE INSURANCE COST?

Your life insurance policy premium will vary depending on several factors, which include:

• Your age
• Whether or not you use tobacco
• The presence of additional insured individuals on your plan
• The length of term coverage

The premium also fluctuates based on the policy amount you purchase. Policy coverage levels are usually between $25,000 and $250,000.

When comparing different life insurance policies, consider how much your family will need to maintain their current lifestyle and accomplish their future financial goals. Will your children have money to pay for their college education? Will your spouse be able to continue covering your mortgage?

It’s important to factor in your debt and business assets as well. If you’re a small business owner, focus your search on life insurance policies that can cover business-related expenses, including everyday operating costs.

Learn More: – Life Insurance – Paying for Your Policy

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LIFE INSURANCE TYPES

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WHAT IS THE BEST TYPE OF LIFE INSURANCE?

The best type of life insurance is the one that is right for you and your situation.

Learn More: – Life Insurance Common Terms and Definitions

WHAT TYPE OF LIFE INSURANCE POLICY DO I NEED?

You have a couple options when it comes to selecting your life insurance policy. Read on as we break them down for you.

First, let’s consider what you should look for in a life insurance policy. One of the first questions you’re likely to ask yourself is, “how much can I expect to pay for coverage?”

Learn More: – Life Insurance Common Terms and Definitions

WHAT IS TERM LIFE INSURANCE?

A term life insurance policy covers you for a set amount of time — a “term.” You can renew the policy when it ends, or transfer to permanent policy coverage. The term life insurance policy with Woligo provides coverage for 15 or 20 years, depending on your age.

Term policies have lower premiums than permanent policies for the same coverage in the initial years. Individuals who are in good health often prefer this plan because it is designed to protect beneficiaries in case of a premature death, not necessarily to pay family members once children are all grown up and on their own. It can also be a great for adults in their mid-life who want limited protection for the next decade. Term life insurance benefits can be used to make up for the lost income during your working years. The death benefit is typically paid in a single lump-sum amount.

Due to lower premiums, term life policies help you protect your family for the same coverage, but at less cost, than permanent policy premiums. You can feel secure knowing that your family will be ok if you were to pass away, but also minimize your expenses right now. Term life insurance policies are simple to understand and easy to start.

Learn More: – Life Insurance Common Terms and Definitions

WHAT IS PERMANENT LIFE INSURANCE?

Permanent life insurance, also known as whole life insurance or universal life insurance, can last for your entire life, as long as you continue paying your premium. Premiums are substantially higher than term policy premiums for the same coverage in the initial years because of the extended coverage.

Some independent contractors and small business owners choose a permanent policy because some of the money paid into the policy can go into a cash value account. With some policy options, you can surrender your policy for cash, but it forfeits your coverage and death benefit.

Learn More: – Life Insurance Common Terms and Definitions

WHAT IS WHOLE LIFE AND TERM LIFE INSURANCE?

Whole life and term life insurance are the two most common types of life insurance. Whole life insurance, otherwise known as permanent life insurance, can provide coverage for a lifetime. In contrast, term life insurance offers life insurance for a term or period. Term life insurance policy through Woligo offers coverage for 15 or 20 years, depending on your age.

Learn More: – Life Insurance Common Terms and Definitions

WHAT IS SUPPLEMENTAL LIFE INSURANCE?

Supplemental life insurance is additional coverage that adds an extra layer of protection to your basic life insurance plan.

Learn More: – Life Insurance Common Terms and Definitions

WHAT IS ACCIDENTAL DEATH INSURANCE?

Accidental death insurance is supplemental life insurance and protects against the loss of life caused by accident. Accidental death insurance could cover death by a car crash or airplane crash, death by murder, loss of limb or finger, or loss of sight, hearing, or speech.

Learn More: – Life Insurance Common Terms and Definitions

WHAT IS CRITICAL ILLNESS INSURANCE?

Critical illness insurance is another type of supplemental life insurance that can fill a gap between health insurance and life insurance. This benefit provides an accelerated payment of life insurance proceeds if the insured suffers a critical illness such as life-threatening cancer, heart attack, major organ transplant, paralysis, renal failure, or stroke. The amount paid for a critical illness is deducted from the remaining death benefit.

Learn More: – Life Insurance Common Terms and Definitions

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LIFE INSURANCE FOR THE SELF EMPLOYED

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LIFE INSURANCE FOR THE SELF-EMPLOYED

Why should you think about life insurance? It’s one way to rest easy knowing the people in your life will receive financial assistance to help in the event of your passing. Life insurance is particularly important in the prime adult years of your life, because these years are often the most expensive for the people you love. Life insurance can provide them with the financial means to help with costs like cars, mortgages, college, everyday living and even funeral expenses.

Learn More: – How Does Life Insurance Work?

CAN I DEDUCT LIFE INSURANCE PREMIUMS PAID IF I AM SELF-EMPLOYED

The simple answer is usually no. If the policy benefits you, you can never deduct the premium cost on your tax return. It is best to talk to a tax professional to understand your deduction options.

Learn More: – Life Insurance – Paying for Your Policy

CAN SELF EMPLOYED DEDUCT LIFE INSURANCE PREMIUMS?

Those who are self-employed can write off the life insurance plans for employees but not if you benefit from the policy. Before you dedect the cost, it’s best to talk with a licensed tax advisor to better understand what insurance is tax deductable as a business and what to do and what not to do while managing taxes with your life insurance policy.

Learn More: – Life Insurance – Paying for Your Policy

IS LIFE INSURANCE FREELANCER INSURANCE?

Yes, yes, and yes again! There are many benefits of life insurance, such as leaving money to your kids for their college or helping your spouse pay for the mortgage. But, a commonly overlooked benefit of life insurance is for freelancers, small business owners, and independent workers.


If you have debt, such as a business loan, you want to make sure you have life insurance covering your debt or business loan – especially if you used personal property as collateral. Imagine you pass away, your spouse no longer has your income to help pay bills, and they are forced to sell the house to pay off the debt you left behind?

Learn More: – How Does Life Insurance Work?

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COMMON QUESTIONS ABOUT LIFE INSURANCE COVERAGE

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HOW MUCH COVERAGE DOES LIFE INSURANCE OFFER?

Policy coverage levels are usually between $25,000 and $250,000.

Learn More: – How Does Life Insurance Work?

hOW MUCH COVERAGE SHOULD I GET?

The amount of life insurance coverage you should get largely depends on your situation. You should consider how much your family will need to maintain their current lifestyle and accomplish their future financial goals. Will your children have money to pay for their college education? Will your spouse be able to continue covering your mortgage?

Even if you don’t have a family yet – you should still plan for the future, especially if you are taking advantage of lower premiums while you are young and healthy. If your term life insurance policy covers you for 20 years, is it possible you might have a spouse, children, aging parents, or other dependents that could come to rely on you? Don’t make them miss out on the benefits of life insurance.

Learn More: – How Does Life Insurance Work?

WHAT DOES LIFE INSURANCE COVER?

Life insurance typically covers the death of the insured – if they pass away from an illness or natural cause. Death by accident is not always covered in a policy, in which case you should also opt for accidental death insurance.

Learn More: – How Does Life Insurance Work?

WHAT DOESN’T LIFE INSURANCE COVER?

Life insurance does not cover death resulting from or contributed to by:

• War or any act of war
• Injury while in the military service
• Suicide or attempt at suicide
• Bodily or mental infirmity, illness, or disease
• Medical or surgical treatment
• Committing or attempting to commit an assault or a felony, or engaging in an illegal occupation
• Intoxication as evidenced by a blood alcohol content at or above the presumptive level of intoxication set by the law of the state in which injury occurs
• Voluntary use of narcotics or drugs (except as prescribed by a physician)
• Operating, riding, or descending from any vehicle or device for aerial flight if the insured was (1) a pilot, officer, or member of the crew, or had any duties on such aircraft; or (2) giving or receiving any kind of training or instruction; or (3) aboard for the purpose of descending from such aircraft while in flight

Learn More: – How Does Life Insurance Work?

WHAT IF I AM A TOBACCO SMOKER?

If you are a tobacco smoker, you can expect your term life insurance premium to be higher than that of non-smokers. This is due to the health risks associated with smoking tobacco.

Learn More: – How Does Life Insurance Work?

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LIFE INSURANCE BENEFICIARY OVERVIEW

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WHAT IS AN INSURANCE BENEFICIARY?

An insurance beneficiary is a person or person(s) who will receive the lump sum payment, or death benefit, in the event you pass away.

Learn More: – Life Insurance Common Terms and Definitions

WHO CAN BE AN INSURANCE BENEFICIARY?

Anyone who has an ‘insurable interest’ can be an insurance beneficiary. An insurance beneficiary is typically a spouse, child, grandchild, other family members, or close friend of the policy owner. However, a business partner, charity, or nonprofit organization can also receive life insurance benefits.

Learn More: – Life Insurance Common Terms and Definitions

DOES AN INSURANCE BENEFICIARY NEED TO DO ANYTHING TO RECEIVE A DEATH BENEFIT?

Yes. An insurance beneficiary will need to know the insurance company’s name to contact them and start the claims process. They will also need to fill out any required claim paperwork, which typically includes a certified copy of the insured’s death certificate.

Learn More: – How Does Life Insurance Work?

ARE DEATH BENEFITS TAXABLE?

In most cases, an insurance beneficiary does not have to pay taxes on death benefits they receive. Yet another benefit of life insurance.

Learn More: – How Does Life Insurance Work?

CAN YOU TAKE A LIFE INSURANCE POLICY OUT ON ANYONE?

No – you can’t take a life insurance policy out on just anyone. We have learned that the policyholder is the owner of an insurance policy, and the insured person is who the life insurance contract insurers, and they do not have to be the same person. However, there are stipulations on who a policyholder can take out a life insurance plan on.

You can only take a life insurance policy out on someone you have an insurable interest in and only with that person’s consent. For example, a businessman can take out an insurance policy on their business partner if they agree. If the business partner passes away, the businessman can suffer financially, which serves as the insurable interest.

It’s important to remember that knowledge and consent are essential for taking a life insurance policy out on someone else. A spouse can’t even take out a life insurance policy and get the benefits of life insurance on the other spouse without consent.

Learn More: – How Does Life Insurance Work?

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