Gig workers are all too aware of what can happen when they cannot work for an extended time due to accident or injury. Without benefits from an employer to fall back on, the self-employed often push themselves to go back to work before they feel ready. Even if you have never experienced this scenario directly, you likely will at some point during your freelance career. Learning about income protection is an important way of protecting your financial future.
What is Income Protection?
Also known as permanent health insurance, income protection offers financial security based on a percentage of your typical income. Most income protection plans have a waiting period, but after that you can apply for benefits until you are able to return to work. You pay less in policy premiums with longer waiting periods. The typical range is one month to one year.
You need to make sure that you keep your policy current to prevent having it expire while you are still at home recuperating from your injury or illness. Most insurers enforce several exclusions where they will not pay benefits even when you cannot work. Common examples include:
- Committing a criminal act
- Injuries sustained during periods of civil unrest
- Mental health conditions
- Miscarriage or pregnancy discomfort
- Pre-existing health conditions you were aware of before taking out the policy
- Suicide attempt or another type of self-inflicted harm
- Use of non-prescription mind-altering drugs
What Does Income Protection Normally Cover?
Income protection does not cover specific expenses such as hospitalization or medication costs. Instead, it provides replacement monthly income when the policyholder cannot work, has a legitimate claim, and has met the waiting period requirements. You can use the monthly payment to cover your mortgage, rent, car expenses, groceries, and other necessary expenses.
Jobble.com has a benefit available to gig workers known as the Jobbler Income Shield. This benefit not only replaces income when you are in the hospital, but you also receive coverage when you have been in a car accident and cannot drive your car to a gig. This benefit is unique from other income protection plans available.
If you get into a car accident and cannot use your vehicle, the Jobbler Income Shield will provide 80 percent of your lost income until you have reliable transportation again. Keep in mind this is not an auto, disability, or health insurance policy. You also receive 80 percent of your average pay when you are in the hospital.
You can use the Jobbler Income Shield to borrow against future earnings when you are ill and need to stay home but not hospitalized. Yet another benefit of Jobble’s income protection plan is that you have 24/7 access to telemedicine for yourself and family members living in the same home. Telemedicine service is free with no deductible.
Gig work is flexible and exciting but can come with added concerns of how you would pay the bills when out of work. Accessing benefit such as the Jobbler Income Shield can provide you with valuable peace of mind.
About the Author: Lisa Kroulik has worked as a freelance content marketing writer for 10 years. She loves the work and the lifestyle it affords. Learn more about Lisa’s work and availability through Writer Access.