February 1, 2023

A recent study sponsored by Legal and General Group found that gig workers may not be meeting their appropriate financial needs, especially as it relates to life insurance and health care. Freelancers have lots of opportunities, but also face some financial risks if they aren’t proactive about savings.

Having a financial safety net is an important part of establishing your own business and continuing to grow that company. Working with a team of financial professionals is crucial because there are many unique aspects of working as a freelancer that require the insight of someone who can help you navigate this process.

For example, deciding which retirement plan to enroll into as a self-employed professional can be challenging and maybe influenced on your status as a sole proprietor, LLC, owner or S corporation owner. Discussing these options with a financial professional can help you select the retirement plan most appropriate for you and to ensure that you’ve covered all your bases when it comes to insurance protections.

Over 42% of freelancers interviewed in the study reported that life insurance or pension plan and health care would be their top lures back to a traditional employment situation. With more than 40% of gig workers today having life insurance, this leaves a big opportunity for the remaining 60% to verify that they have protected their loved ones in the event that something happens to them.

As a freelancer your income is usually reliant on you doing the work, unless you run an agency. This puts your family at risk of financial peril without appropriate planning done for you. Contact our office today to learn more about what a holistic financial plan looks like for an experienced and scaling freelancer.