No office desk, a flexible schedule, and the freedom to work from literally anywhere…. welcome to the world of freelancing. What was once considered a mere part-time job, or a side gig has now become the main hustle for many. A recent report* shows that the Philippines is among the top five freelancing countries in the world, with approximately 1.5 million Filipino digital workers serving as virtual assistants, graphic artists, writers, programmers, and more.
*www.rappler.com/voices/thought-leaders/vantage-point-gig-economy-growth-engine-precarious-lifeline/
Challenges and vulnerabilities in freelance work
While freelancing offers unmatched freedom—the ability to work anytime, anywhere, and live life on your own terms, it also comes with trade-offs. Unlike traditional employees, many freelancers do not have access to company-provided benefits such as HMO coverage, paid leave, retirement plans, and other workplace perks, making financial protection and healthcare planning even more important. However, preparing for these trade-offs is also often overlooked, resulting in the lack of financial protection when unexpected challenges arise.
Take for example, Henry, a 28-year-old digital nomad living his dream life in Siargao. He works with two different clients, earning enough to support his family while sustaining his island lifestyle. After his shift, he spends his time surfing at Cloud 9 and enjoying various beach activities.
However, during one of his leisure activities, Henry gets into an accident that prevents him from doing his freelance work for two weeks.
Since his current jobs do not provide company benefits such as HMO or insurance coverage, he is forced to use his personal savings to pay for his hospital treatment. Because of the accident, he is also unable to provide his parents with their monthly medical needs. This scenario highlights a reality many freelancers face when they do not have proper protection in place.
Here are some of the risks freelancers should consider and be prepared for:
- Accidents – According to the Department of Labor and Employment, there are around 30,000 to 40,000 work-related accidents and injuries annually. Serious accidents can leave you unable to work and lead to income disruption.
- Disability – Severe accidents may result in permanent disability, making it difficult or impossible to continue working. Having financial protection in place can help you stay financially afloat during such circumstances.
- Critical Illness – Working with multiple clients across different time zones can take a toll on one’s health, increasing the risk of conditions such as stroke, heart disease, or hypertension. In the Philippines, the estimated cost of treating a stroke ranges from ₱225,000 to ₱765,000.
While freelancing gives you the freedom to choose your own path, it also comes with the responsibility of building your own protection while staying within your budget. Nowadays, there are affordable insurance plans that cover life’s unexpected challenges, helping safeguard your income, savings, and the future you’re working hard to build. By choosing a plan that includes benefits such as critical illness, accident, and life insurance coverage, you can protect both your financial stability and your loved ones while continuing to enjoy the freedom and flexibility of freelancing.
AllShield has your back as you work hard for your dreams
For freelancers like you who rely on every working day so you can achieve your life goals, AllShield has your back. For as low as ₱59/day, you can set up your own financial back-up plan with its all-around protection benefits:
- Life Insurance Coverage – Receive a lump-sum benefit of ₱1.1 million to help keep your family financially secure if something happens to you. Your loved ones may also receive an additional death benefit depending on the account value accumulated over the duration of your policy.
- Accidental Insurance Coverage – In the event of accidental death, an additional ₱1.1 million will be provided to your beneficiary.
- Critical Illness Benefit – If you are diagnosed with a covered critical illness, you will receive a lump sum of ₱240,000 to help ease the financial burden, so you don’t have to use your savings in paying for your medical bills.
Note: Benefit amounts shown are based on a 30-year-old female with a regular premium payment of ₱21,000 per year.
Freelance life has its perks, but protecting yourself from life’s uncertainties is just as important if you want to maintain your lifestyle. No matter where your freelance work takes you, know you can stay on top of your finances when life takes an unexpected turn. To learn more about our all-around insurance plan, AllShield, talk to an AXA Financial Partner today.
Sources:
Gig economy in the Philippines: Is the workforce ready for the rise of freelancers?
[Vantage Point] Gig Economy: Growth engine or precarious lifeline?
