Professional musicians don’t have a human resources (HR) representative to aid them in selecting the right life insurance policy. In fact, many musicians often go without life insurance, simply because it simply hasn’t come up. Like many freelance workers, musicians overlook this crucial part of personal financial responsibility and sometimes end up paying a hefty price because of it.
Rock and Revenue
When it comes to life insurance, all musicians need it, especially if they have a family. Families depend on all sources of income, even if the musician is just playing part-time gigs. Losing this income can be significant overtime, not to mention the funeral costs and emotional damage this will cause the musician’s spouse. If the musician is fully responsible for a family’s income, then it becomes even more important that they have life insurance. This is the money that will support the family, should tragedy occur.
Life insurance isn’t just about death. Lots of policies also include payouts when the insured party becomes disabled, or needs funds allocated for education, or requires help to supplement a sudden loss of income. For a musician, if something impedes your ability to play, you will likely be able to file a claim on your policy.
You’ll want to choose policies that reflect your current income. Even though you may want your family to have hundreds of thousands of dollars after you’re gone, it may not be fiscally responsible to pay the yearly cost for that insurance amount. Pick the maximum amount that’s also affordable to you. If you can afford a $50.00 monthly payment, it’s estimated you’ll receive approximately $200,000.00 in life insurance.
Types of Insurance
Term life and whole life insurance are the two types of life insurance available. Even rockers will want to familiarize themselves with the pros and cons of each. Do you know whether to choose term or permanent life insurance? If you do, then you’re already steps ahead.
Term Life Insurance
Pros: Cons:
Easiest to understand – Only counts during the term
Premiums can be paid monthly or annually – Longer terms cost more
Helps provide for a sudden loss of income
Covers short-term financial issues
Whole (Permanent) Life Insurance
Pros: Cons:
Covers your entire life – Costs more than term
Includes a savings account – Investments have high fees
Investments are made on your behalf – Limited investment control
You can borrow against its cash value
Your Next Steps
If you’re ready to move forward, then you’ll want to get in touch with a reputable insurance company. They’ll assign an agent to you and that agent will work to sell you a life insurance package. If you’ve done your research, you’ll be ready for this sales pitch, plus you’ll already know what you require to fully cover yourself. Don’t get caught up in the agent’s sales pitch, because they may be trying to increase their commission.
Much like a record contract, you’ll want to fully read the small print before you sign on the dotted line. Make sure that you read up about the insurance company before you trust them with your money. You’ll want to ensure that they’re reputable, with a long history of good work, and not a lot of negative reviews.
Once you’ve verified a company is reputable, you can begin the process of insuring yourself. Make sure that you know when your first day of coverage begins, the length of coverage, the amount of coverage, and how much you’re expected to pay for your coverage. If everything falls in line, you can put pen to paper and consider yourself insured.
