Going Freelance or Self-Employed? Here’s What You Need to Know About Insurance
So, you’ve made the leap to leave your 9–5 and go out alone—congrats! No boss, no set hours, and no… benefits?
Being your boss comes with a lot of freedom, and a lot of responsibility. If you’re leaving an employer with group health benefits, now is the time to think about how to replace that safety net.
Why Insurance Still Matters When You’re Self-Employed
When you’re self-employed, you are your most valuable asset. That means protecting yourself is protecting your income. Freelancing or running your own business often means no sick days, no disability leave, and no employer-covered life insurance.
Nearly 50% of full-time freelancers are uninsured for life, health, disability, or critical illness benefits, leaving many financially vulnerable if something unexpected happens.
Stepping out on your own is exciting and often empowering but building a personalized benefits plan can help reduce some of the inherent risks of entrepreneurship.
The Coverage You Might Need (and Why)
Not all insurance is created equal. Here are the main types of coverage worth considering when you’re self-employed:
Health Insurance
- It covers what provincial plans don’t, like prescriptions, dental, and extended health benefits (such as physio or massage).
- Essential if you develop a condition or get injured and there’s no group plan to fall back on.
Disability Insurance
- Replaces a portion of your income if you can’t work due to illness or injury.
- Often overlooked but arguably the most important for the self-employed—it protects your paycheque.
Life Insurance
- This is especially important if you have dependents or significant financial responsibilities (like a mortgage).
- Without a group policy through an employer, a personal life insurance plan can offer peace of mind.
Critical Illness Insurance
- Provides a lump sum payment if you’re diagnosed with a major illness (like cancer, stroke, or heart disease).
- That payout can help with recovery, cover time off, or support you financially while you focus on getting better.
When Should You Get Covered?
Ideally, as soon as you go out on your own, or even while you’re still in transition. Being without coverage, even temporarily, can create unnecessary stress. Some plans require medical underwriting, so applying while you’re healthy can be advantageous.
An advisor can help you tailor coverage that fits your current lifestyle, priorities, and budget.
Common Mistakes to Avoid
It’s easy to assume you’re too young or healthy to need personal insurance. Others may think provincial healthcare is enough. But here’s the thing, if you’re self-employed and something happens, you don’t have an employer to lean on. And out-of-pocket costs can add up fast.
Don’t let the cost of coverage scare you off either. An advisor can walk you through flexible, affordable options that help cover your bases without overextending your budget.
How to Get Started
Not sure where to begin? Talking to an advisor is a great first step. They’ll walk you through your options, help you clarify your priorities, and work within your budget.
They can also explore bundling different types of coverage, which can sometimes reduce costs and simplify claims.
Protect What You’re Building
Going freelance or starting your own business is one of the boldest moves you can make and it deserves to be backed by a strong foundation. Personal insurance might not be the most exciting part of self-employment, but it’s one of the most important. It’s not just about preparing for the unexpected, it’s about creating peace of mind allowing you to focus on what you do best.
You’ve done the hard thing, now take the steps to protect your income, your health, and your future. Speaking with an advisor can help you feel confident in the path you’re building and make sure you’re covered for the road ahead.
