Life Insurance for Self-Employed Individuals

What is self-employed life insurance?

Life insurance for the self-employed is a policy taken out by individuals who are not employed by a company or business, such as freelancers or sole traders, but works in a similar manner.

It is a policy designed to protect the family or beneficiaries of the insured person, in the worst case scenario that they die. There are a number of different types/levels of life insurance for a self-employed individual, and at Dragonfly Crowd, we’re here to really understand you as an individual, so we can find the best plan which meets your needs. 

The best type of life insurance if you’re self-employed

The best type of life insurance for self-employed people depends on what type and level of protection you’re actually looking for:

• Term life insurance – Provides coverage for a specific period of time known as the ‘period.’ Common policy lengths include 10, 20, 30 years, which is usually enough time to cover one’s family whilst they need it. 
• Whole of life insurance – As you probably guessed, these plans cover you for your whole life – assuming you keep paying premiums – with a guaranteed amount being paid to your beneficiaries when you die. More often than not, whole life insurance plans come with fixed premiums that do not increase as you get older. 

All of these forms of life insurance are available to self-employed individuals, and the expert team at Dragonfly Crowd is eager to talk you through your options!

What does self employed business life insurance cover?

Self-employed business life insurance covers a number of different things to support their family of the holder:

• Lost income – The beneficiaries of a self-employed person will be protected by a single or multiple payouts, particularly if that person was the primary earner.

• Debts and expenses – Coverage can be used to pay off debts such as mortgages, as well as helping the family keep going financially. 

• Supporting children – A very common reason for self-employed individuals seeking life insurance, being able to guarantee support for your children after you die is important. 

• Financial security – Dealing with loss is hard enough; allowing your family a financial buffer should you die is an important aspect which self employed business life insurance can cover. 

How business life insurance can support sole traders

A sole trader is able to take out life insurance just like anybody else. As a sole trader, you won’t automatically have a level of coverage that a lot of employees at larger businesses have, so it’s important to assess your options. 

Sole trader business life insurance provides you with the peace of mind that your beneficiaries are protected even beyond your death. 

With sole trader life insurance, you can rest assured that your family is protected in the same way that they would be if you worked for a business that offered life insurance as a benefit. 

At Dragonfly Crowd, we advise upon and deliver the best cover based on your individual circumstances.