Essential insurances for Digital Nomads
“Live with no excuses and travel with no regrets”.
This is the motto of many digital nomads and freelancers today. But the meaning of such a quote can be two-fold. Yes, you should live your life to have no regrets. Be adventurous. Try new things. Travel the world. Live life to the fullest. And have no regrets. But do so safely so that “no regrets” lives true to it’s word. Not only do you want to avoid regrets in missed experiences, but you also want to live with no regrets in the sense that you want to make sure you are financially covered if anything should ever go awry. For any traveller, protecting yourself is of utmost importance.
So how do you do that? To protect our homes we have homeowners insurance. To protect our vehicles we have car insurance. To protect our health, we have health insurance. And well, you get the point. But what types of insurance can help digital nomads? Today we have broken down insurance into two categories for freelancers and digital nomads: essential insurance vs. beneficial insurance. Let’s start with the essentials:
Health Care Insurance:
Health care insurance often gets mistakingly confused with travel insurance. But the two are actually very different types of insurance. Health care insurance is medical coverage that ensures you have protection if you are injured and sick while in another country. Travel insurance, on the other hand, helps to cover any issues you may have related to your travelling experience – lost baggage, missed flights, etc.
In other words, travel insurance is optional, but health insurance is essential. You never know what types of issues you could run into in another country – an injury while exploring, a virus or infection, or a different type of health care concern. So when it comes to health care insurance, safe is better than sorry – because medical bills can add up quickly.
WorldNomads – You can buy your policy and claim online, even after you have left your home already. *
Worldescapade – Travel insurances for everybody, expect US-citizens.
Globelink – Get a quote from UK-based Globelink. Sincerely just for travellers and Holidaymakers from the UK and the European Union plus Liechtenstein and Norway.
Private Pension Insurance
The term “private pension insurance” means different things to different people. Some people use the term private pension insurance interchangeably with pension plan. A pension plan is a type of benefit plan that can help to financially assist you after retirement. In some cases, you may be automatically enrolled in a pension plan when you start a new position. But if you are a nomad who is working for yourself, you will probably need to set up your own. You will “pay in” to this plan each pay check so that when you retire you will have funds to live off of.
Others use the term private pension insurance to refer to the actual insurance of their pension plan. This type of insurance is put in place to guarantee payments after retirement even if your plan should fall through. To us, the option of private pension insurance is optional, but the option of setting up a private pension plan not.
Disability insurance helps to cover you if you are no longer able to work due to a disability. For us, disability insurance would be a beneficial policy to have, but definitely not a necessity. Why? Because we’re guessing that the chances of you becoming disabled to the point where you cannot work anymore is pretty slim. Nevertheless, if something were to ever go wrong, you would need to think, “what money would I live on?” If you have a large savings plan, perhaps you don’t need a disability insurance policy. If you don’t, it could be something you want to consider.
Baggage insurance isn’t a necessity by any means, but it’s definitely nice to have. While 90% of the time we get our luggage from one place to another without issue, there are times when luggage can get lost or damaged. This is what luggage insurance is for. Luggage insurance covers lost, damaged, destroyed, or stolen baggage. It also covers stolen currency, and helps to pay for personal necessities if your luggage should be delayed for any reason.
As a digital nomad or freelancer, you need to protect yourself. Why? Because regardless of your good intensions, bad things can happen. Most freelancers only get liability insurance when they work for a client that requests or requires it. But even if not requested, liability insurance is never a bad thing to have. Mistakes can happen, and if/when they do, you don’t want to be held responsible for paying the damages. Liability insurance can help to protect you from the financial burden of a damage claim against you.
If you are a digital nomad or freelancer who is travelling around the world, our guess is that you probably don’t have a spouse or any dependants to worry about. But this is not always the case. If you have a significant other or child that you support, life insurance is always a good option – whether you are working as a freelancer not. Life insurance is one of the most common types of insurance because it can ensure that your loved ones are financially supported if anything should ever happen to you. Is it a necessity? If you have a family, yes. If you are on your own, we’d say skip it.
Trip Cancellation Insurance
Again, this type of insurance is not a necessity, but is beneficial to have. Trip cancellation insurance helps to cover the costs of trip cancellations, trip interruptions, emergency evacuations, lost baggage, accidental death, and so on and so forth. Trip cancellation insurance can vary greatly depending on your policy, so make sure that you read through the fine print before making a commitment.
If you are a digital nomad or freelancer working abroad, it’s time to start thinking about your insurance options. There are some types of insurance that you just can’t leave out (Health care insurance, private pension plans), and others that are not a necessity, but definitely worth considering to help keep you and your finances safe. And remember, insurance usually only costs the same amount as a dinner, but it can protect you immensely if ever needed.