Financial Thoughts
Worthwhile Insurance If You Work In The Food Delivery Business
The food delivery service is also a booming business. Thus these huge businesses do depend on a lot of people on doing the job for them. Be it via motorbike, electronic devices or even bicycle, the food does get delivered.
Therefore with more people being on the road to earn a living, you have to do whatever to continue to put food on the table. Continue reading and you will understand what we mean.
Accidents can happen anytime
Every day hundreds of people are involved in an on-the-road related type of jobs. With the diversity of vehicles on the road plus the rush to reach somewhere, the odds of an accident happening do exist.
Everyone has their timelines to catch or even to rush to deliver their next order. But one small mistake can lead up to a huge accident.
Due to that accident, you land in the hospital and have to be warded for days. Even after getting discharged, you are not able to continue on working due to the severity of the injuries.
Your capability of earning an income has halted and you will be struggling just to even pay the bills as home.
Even if it is just a part-time job, your engagement or wedding might even need to be postponed. Who knows, the money you have earned from delivering food might be the money you have put aside for the wedding venue.
With that, it is only wise for you to do every single prevention step so that you can get through such difficult times.
READ ALSO: Mishaps That May Happen To You If You Are A Food Delivery Rider
Imagine the amount that you will spend
When you are involved in an accident, there is a possibility that you would need medical attention.
Be it you get outpatient treatment or even the worst-case scenario is that you would need to be hospitalized.
If you go for outpatient treatment, you might spend from a range from $120 even a $1,000. It really depends on the severity of your injury.
On the other hand, it will cost much higher if you have to be hospitalized. A week in the hospital might cost you approximately $10,000. Once again, it will depend on how bad your situation is.
With that would you need to deep dig into your savings just to pay off the medical bills. You might even be in debt with the bank.
READ ALSO: Ways To Protect Yourself When You Are A Private Hire Driver
And imagine the amount that you will lose as well
As a food delivery rider, in order for you to get paid, you would need to be able to send food to the consumer. Hence if you were not able to work, you would not get paid. It is as simple as that.
In a day, you might be able to do 30 deliveries and with each delivery, you will be paid $8. And maybe with that, 30 deliveries you would be an incentive of $30.
In total, you would earn $270 a day.
Say for example, if you are involved in an accident and you are hospitalized for a total of 30 days.
Equally, you are not able to work for 30 days, which means you lose the ability to earn a total of $8,100 (ignoring any off days).
Therefore, getting involved in an accident would mean the loss of a huge amount of money.
First solution; get yourself a Personal Accident Insurance
Reimbursing the cost of treatment when you get into an accident.
Buying yourself some crutches, as you need them for you to walk
Receiving daily allowance as you were hospitalized due to the accident.
What was mentioned above are just some of the benefits offered in a Personal Accident (PA) plan.
It offers some kind of compensation when an accident occurs. It will help you in giving you the money that you need and even it will help you in preventing you from reaching into your hard earn savings.
Relatively, PA plans are very affordable and there are a huge number of companies that offer PA plans. You just need to select which one you would want.
If the accident was really bad, you need this back-up plan
If you get into a minor accident, thus a PA plan should be sufficient. As the benefits are to help you in the short term run.
On the other hand, what if you were involved in a major accident?
Will you ever be able to work again?
Some people are not fortunate; they are not even able to walk again. Thus, if in a situation that you are not able to walk again, you would need all the monetary support to continue on with life.
There is a term called Total & Permanent Disability (TPD). There are various definitions when it comes to TPD from respective insurers.
But one common definition would be:
The inability to take part in any work/occupation in order to obtain wages for the rest of your life.
With the fact that you are not able to work for the rest of your life, it is definitely something huge.
Getting an insurance policy that offers the TPD benefit will certainly help in supporting you when such an unfortunate event happens.
A Whole Life or a Term Plan would fulfill normally have a TPD benefit. A TPD benefit will normally be paid out in a lump sum.
Nonetheless, you can always ask an Independent Financial Adviser to suggest you which plans would suit you and your budget.
Optional: Mobility Vehicle Cover
Before moving on further, we will not discuss Motor insurance. It is compulsory for any vehicle owner to have it.
Mobility vehicle would mean bicycle or e-scooters. These are some tools that some food delivery riders use on a daily basis for their job.
So far we have been talking about protecting yourself, thus now we will talk about protecting your vehicle.
Without the vehicle, it will be a huge challenge for you to execute your job. You may still be able to do it, but it might on a different speed altogether. Which will indirectly affect your earnings as well.
Thus, having some compensation to repair your vehicle would be a wise decision.
There are not many insurance companies who offer this type of insurance hence, it will be a much easier decision for you to select either one of them.
A small price to cover up for a larger price in the future
The fact that the food delivery business exists was such good news to many people who are looking to earn money.
Be it you are waiting for National Service, saving up for college, extra income to prepare for parenthood or even buying a new home. Whatever the reason, you really have to always look back to why you are delivering food in the first place.
If you know how valuable this side of income is to you, you should do all that you can so to that you reach your goal and at the same time continue with life even when things go sour.
You are taking a risk by putting yourself on the road, let the insurance help you replace that risk for you.
Well, that’s the end of this article. Do share it if you think this is beneficial to your friends and family.
Disclaimer:
I am a financial adviser but I am not your financial adviser. Therefore, what is posted on this website, are my opinions and NOT to be taken as financial advice. Information provided might be relevant at this period of time but maybe irrelevant due to alterations to rules, regulations or policies. The information provided is true to the best of my knowledge, but there maybe omissions, errors or mistakes.
