Why is it important for freelancers like Zack to consider short-term disability insurance?

Considering short-term disability insurance is crucial for freelancers like Zack because it provides financial protection in the event that they are unable to work due to an illness or injury. Unlike traditional employees who often have access to company-sponsored health benefits that include paid sick leave, freelancers do not have this safety net. Consequently, if a freelancer becomes sick or injured, they might find themselves without income during their recovery period. Short-term disability insurance helps mitigate this risk by offering a portion of their income, ensuring that they can manage their living expenses while unable to work. This coverage spares them from the stress of financial instability during challenging times, allowing them to focus on recovery and return to work as soon as possible.

Other options, while they represent important aspects of financial planning, do not address the immediate concern of income loss due to health issues. For example, ensuring savings for retirement is important but does not assist with sudden income loss. Similarly, unemployment benefits are typically not available to freelancers, and client non-payment while a potential risk, is addressed through other financial safeguards rather than disability insurance.