If anyone depends on your freelance income — children, a spouse, aging parents, or co-signers on business debt — term life insurance is mandatory risk management.
Why Term Life beats Whole Life
Term life insurance provides simple, pure protection for a set period (e.g. 20 or 30 years) at a fraction of the price of whole life or universal policies. A healthy 30-year-old can often secure a $1,000,000 20-year term policy for under $40/month.
How to calculate your coverage amount
Use the DIME method:
- D (Debt): All personal and business debts (excluding mortgage).
- I (Income): Multiply your annual net income by 10–12 years.
- M (Mortgage): Remaining home balance.
- E (Education): Estimated future college costs for children.