The rise of the gig economy has been a blessing and curse for the gig worker. If you use gigs or freelance work to supplement your main income, you probably enjoy the increased access to quick, fast cash. If, however, you use freelancing as your sole form of income, you may be stuck having to purchase your own insurance instead of getting it through the company you work for. For those new to it all, there are several types of insurance policies for gig workers that you need to have. 

1. Liability Insurance: Liability insurance is needed by some gig workers. It is designed to protect your personal assets in case you get sued for something you did while performing freelance work. While a freelance writer may not need liability insurance—there is little likelihood of lawsuit over a dangling participle or a sentence fragment—a person who delivers food or transports people in their car should have a liability policy. 

2. Life Insurance: Employees at larger companies are typically given a small life insurance policy as part of their benefits package from the Human Resources department. When you are strictly a gig or freelance worker, you do not have that safety net. You can purchase a small life insurance policy to cover funeral expenses for yourself so your family does not have to pay out-of-pocket to your final expenses. You can also invest in a more expensive policy of you have a partner or children that need to be taken care of after your death. 

There are three types of life insurance policies: term, universal, and whole life. Term is the least expensive and simplest type of life insurance policy. You make monthly payments for a set term (usually 10, 20, or 30 years) and when the term ends, the policy coverage ends. Whole life has monthly payments as well, but instead of going strictly towards the premium, the payments build up value, like a savings account. A universal life insurance policy is a variation of a whole life policy but allows you to cash out, skip payments, and more.  

3. Health Insurance:

Health insurance is one of the most important insurance policies to have as a gig worker. There are traditional health insurance policies that cover everything from the minute you walk in the doctor's door to high deductible health plans (HDHP) that cover just the basics, like if you were in an accident. You can pair HDHPs with a Health Savings Account, whoever, and save for future medical expenses. 

When you know what you need and why it can help make the process of purchasing insurance easier. Contact services that provide insurance for gig workers to learn more.