Short Answer 
Zack should consider short-term disability insurance to ensure financial security during illness or injury, as it provides crucial income protection for freelancers like him. This insurance can replace a significant portion of his income for up to 26 weeks at an affordable cost, which is vital for managing essential expenses. Prioritizing this coverage is the most practical choice to safeguard against potential income loss.
Step 1: Understand Short-Term Disability Insurance
Short-term disability insurance is designed to provide income protection if you become unable to work due to illness or injury. This coverage typically lasts between 13 to 26 weeks and replaces 40% to 70% of your income during this time. For a freelancer like Zack, who doesn’t have employer-sponsored benefits, this insurance is crucial for maintaining financial stability during recovery.
Step 2: Assess Financial Impact
Without insurance, an unexpected illness or injury could mean a significant loss of income, impacting Zack’s ability to cover essential expenses like rent and bills. Having a monthly payment from short-term disability insurance can alleviate this burden and provide much-needed financial support. The cost of this insurance is relatively affordable, usually ranging from 1% to 3% of his salary, making it a wise investment for his future.
Step 3: Prioritize Income Protection
Among various insurance options, focusing on income protection through short-term disability insurance directly addresses the potential risk of losing income. Other options such as increased life insurance or lack of health insurance for work-related injuries do not provide the same type of financial safety during a disability. Therefore, securing short-term disability insurance is the most logical and beneficial choice for someone in Zack’s situation.