Life Insurance for the Self-Employed: Best Options for 2024
Why Self-Employed Workers Need Life Insurance
When you work for yourself, there is no HR department automatically enrolling you in a group life plan. Yet the financial stakes are often higher — your family may depend entirely on your business income, and a business loan or SBA guarantee may require life insurance as collateral.
Types of Life Insurance for Self-Employed Individuals
- Term Life Insurance: The most affordable option. A healthy 35-year-old can buy $500,000 of 20-year term for approximately $25–$40/month.
- Whole Life Insurance: Permanent coverage with a cash value component. Premiums are 5–10x higher than term but the policy builds tax-deferred cash value.
- Key Person Life Insurance: The business buys a policy on a key employee or partner. If that person dies, the death benefit helps the business survive the loss.
Frequently Asked Questions
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