No employer benefits. No group coverage. If you're self-employed, you're responsible for your own financial safety net. We compare top-rated carriers to find your best rate in 60 seconds. No obligation.
W-2 employees get group life insurance as part of their benefits package, enrolled automatically, paid for by their employer. You get none of that. If you haven't set it up yourself, it doesn't exist.
Your mortgage, your kids' futures, your family's daily expenses. All of it depends on income you generate yourself. If that income disappears, there's no corporate safety net to catch them.
If you personally guaranteed a business loan, credit line, or lease, those debts can become claims against your estate. Your family could inherit obligations they had nothing to do with.
Self-employed people have two distinct protection needs, and most don't realize it until it's too late.
Income replacement so your family can maintain their home, cover expenses, and sustain their quality of life if you're no longer earning. For a self-employed person earning $100,000/year with a $350,000 mortgage and two school-age children, the total often lands in the $1.25M–$1.75M range.
How to calculate your need:Annual income × 10–12, plus mortgage and major debts, plus childcare and education costs, minus existing savings and assets.
Monthly estimates for a self-employed person, healthy non-smoker.
| Your Age | Coverage | Term | Est. Monthly |
|---|---|---|---|
| 30 | $1,000,000 | 20-year | $40–$55/mo |
| 35 | $1,000,000 | 20-year | $55–$75/mo |
| 40 | $1,000,000 | 20-year | $80–$110/mo |
| 45 | $500,000 | 15-year | $60–$90/mo |
Rates shown are illustrative estimates for comparison purposes only. Actual premiums depend on your health history, lifestyle, and the carrier’s underwriting. All coverage is subject to application and approval.
When you own a business, your death can trigger a cascade of financial problems beyond your household: business loans you personally guaranteed, operating expenses during wind-down, and obligations to partners or employees.
Life insurance sized to cover your business debt ensures those guarantees don't become your family's burden. The business can be wound down or transferred cleanly, without anyone inheriting obligations they had nothing to do with.
Banks almost always require a personal guarantee on business loans, credit lines, and leases. Life insurance sized to cover that debt ensures your family doesn't inherit obligations they had nothing to do with.
A policy owned by the business, on the life of a key individual, with the business as beneficiary. It funds the transition: hiring a replacement, covering lost revenue, or winding down in an orderly way.
If you have a business partner, a buy-sell agreement funded by life insurance lets the surviving partner buy out the deceased partner's share. The business continues. The family receives fair value.
Operating expenses continue while the business is transitioned. Employees, contractors, and clients all depend on your participation. Coverage buys the time to transition without a fire sale.
| Scenario | Coverage | Est. Monthly |
|---|---|---|
| Key person – small business | $500,000 | $50–$80/mo |
| Key person – growing business | $1,000,000 | $80–$120/mo |
| Buy-sell – equal partners | $500K each | $50–$90 each/mo |
Rates shown are illustrative estimates for comparison purposes only. Actual premiums depend on your health history, lifestyle, and the carrier’s underwriting. All coverage is subject to application and approval.
Business coverage varies widely by structure and size. These are starting points for healthy individuals under 45.
Life insurance premiums aren't deductible for the self-employed, but the tax advantages still matter.
Proceeds paid to a beneficiary are generally free of federal income tax. That is a significant advantage for estate planning.
Key person premiums aren't deductible, but the death benefit received by the business is typically income-tax-free as well.
Self-employed wealth is often tied up in business equity, real estate, and equipment. Life insurance provides cash to prevent forced liquidation.
We're not tax advisors, but we'll connect you with the right questions to ask your accountant when setting up business coverage.
“My income varies year to year. How do I calculate what I need?”
Take your average annual income over the past three years. It smooths out exceptional years without understating a growing business.
If your income has a floor it rarely drops below, use that as the replacement baseline. Coverage ensures your family's minimum needs are met.
Term policies can be supplemented as income grows. Getting a base policy now is better than waiting for the “perfect” number. Your family isn't waiting.
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We're an independent brokerage that works with top-rated carriers. We understand what it means to build something from scratch, because we did too. Your business deserves the same attention ours gets.
Example scenarios for self-employed professionals like you.
Freelance designer, 34, two kids
$850K personal + $200K business debt coverage
$67/month
LLC owner with partner, 41
Buy-sell agreement funded at $500K each
Set up in one conversation
Solo consultant, 38, new mortgage
$750K term policy, no medical exam
$52/month
No obligation. No sales call.
W-2 employees get group life insurance automatically. If you’re self-employed, you get nothing unless you set it up yourself.
Source: Bureau of Labor StatisticsWhen you factor in income replacement, mortgage, debts, and education costs, the number is larger than most expect.
Source: Financial planning guidelinesLife insurance proceeds are generally free of federal income tax. That is a significant advantage when your wealth is tied up in business equity.
Source: IRS Publication 525
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