Yes, you have to get new clients, that is always a risk. Proper structuring of payment schedules and IP transfer helps with invoice payment. Also, having long-term relationships with clients also helps there. I would hope you carry some sort of insurance in the case of life taking a sudden left-turn, but perhaps you don't. Ideally you financially plan enough to cover something like that.

I've been a contractor as several points in my life and loved it mostly. It is sometimes stressful making sure everything is on track, but the freedom of not depending on any one client and the difference in income that allowed me to work less If I wanted was great.

I currently work as an employee and also like the benefits it provides and the people I work with. But, I also know that ultimately companies now days have very little loyalty so my mind never lets me think of being an employee as some absolute guarantee of stability.