Insurance Tips for the Self-Employed

Being your own boss comes with several perks, like flexible scheduling and remote work opportunities. These benefits also come with considerations that traditional employees may not encounter. For example, securing medical coverage and saving for retirement is important, but opting for individual life insurance may not always be top of mind.

Security for Yourself and Your Family

It’s natural to protect those we love. Family members and others close to you deserve the confidence and trust for the future. Life insurance offers extra financial security in the event of uncertainty.

For self-employed business owners, the same level of security goes for the overall future of your business. When it’s time to retire, you’ll want to equip your new team to manage your business successfully. Giving them time to get up to speed takes time and money, and proceeds from life insurance can help cover these costs – while giving you peace of mind.

Term vs. Permanent Plans

Two notable plans for the self-employed include term and permanent life insurance policies. In our experience, most individuals often opt for a lower-cost term plan; however, a permanent plan also has its advantages. Permanent plans are often more costly and with good reason. These policies can usually do a whole lot more than term coverage. Permanent plans, like universal or whole life insurance policies, help build equity. This makes it possible to access funds (often without negative tax implications) for various uses. This type of insurance doesn’t expire, so your premiums are locked in from the moment you sign up–you’ll pay the same monthly price for coverage at 25 as you do at 55. Locking in your health plan at the age of 25 makes it much less expensive for years to come, giving you the benefit of paying the same rate for a lifetime.

For many, a permanent policy offers more long-term value than a term policy. On the other hand, term life insurance usually offers more coverage for less money. With this coverage, you can also lock in the monthly price for your insurance, given your current age and health at the time that you start the policy. This coverage usually does expire, though, after a 10, 20, or 30-year time period (whatever is agreed upon at the beginning of the policy period). 

Acquiring life insurance when you’re self-employed is crucial. It can provide you with more stability and overall peace of mind for yourself, your family, and your business. Let the Weiser team help you choose the right coverage for your needs.