Running a one-person shop or small firm gives flexibility, but it also puts the financial safety net squarely on your shoulders. There’s no benefits department providing group coverage, no automatic enrollment, and no employer paying part of the bill.

If something happened unexpectedly, loved ones could lose both income and the value of the business. The right policy can clear debts, cover living costs and give partners the cash to keep the company going.

Top Providers

Ethos suits self-employed people who want term coverage fast and online. Some applicants may qualify without a medical exam, decisions may arrive quickly, and coverage limits can be high enough for many families and new ventures—though eligibility, pricing, and timelines vary by applicant.

Nationwide is well matched to small business owners with staff or partners. Alongside personal policies, it offers tools such as key-person coverage and buy-sell funding that help companies survive the loss of a founder. State Farm appeals to self-employed people who like flexibility and in-person guidance. It offers several forms of universal life, including joint options, and may reduce premiums when policies are bundled with home, car or business insurance.

Ladder focuses on streamlined, adjustable term insurance. Coverage can be increased or reduced online as income, debts and family needs change, which is ideal for freelancers with variable earnings.

Key Policy Types

Most self-employed buyers start by choosing between term and permanent policies. Term life covers you for a fixed period, such as 10, 20 or 30 years, and is usually the most affordable way to protect income while mortgages and business loans are being repaid.

Whole life and universal life are forms of permanent coverage that last for a lifetime as long as premiums are paid. They generally cost more but build cash value that grows on a tax-deferred basis, which can sometimes be tapped later for business expenses, education goals or retirement income support.

No-exam policies skip the medical visit and rely on health questions and data checks instead. They are convenient if schedules are tight or there is hesitation about in-person exams, though premiums may be higher or coverage caps lower. Riders such as accidental death benefits, premium waivers or living benefits can customize protection for specific risks.

How To Apply

Start by estimating how much coverage is needed. A common rule of thumb used by many financial planners is around ten times annual income, then add major debts, anticipated education costs, and a cushion for business wind-down or succession. As you compare term and permanent options, weigh your budget and goals. Self-employed people who are still building savings often favor term coverage for its lower cost, then later add or convert to permanent insurance as cash flow improves.

Before applying, gather documents that show income and obligations, such as tax returns, bank statements and loan details. These help demonstrate how much coverage is appropriate and can speed underwriting.

The application itself will ask about health history, lifestyle, occupation and sometimes business structure. Some insurers will schedule a brief medical exam, while others may approve coverage without one; after underwriting you receive a final offer, and coverage begins when the first premium is paid.

Expert Insight

Alison Salka, a life-insurance research leader, states, “While people want to research online, they also want to talk to an expert when they make the final decision to purchase coverage because it involves the financial security of their loved ones.”

Cost And Taxes

Premiums depend on age, health, coverage amount, term length and policy type. A healthy person in their thirties buying a moderate term policy may pay only a few hundred dollars per year, while permanent coverage for the same person costs more but builds value over decades.

For most self-employed people, life insurance premiums are a personal expense rather than a deductible business cost. However, growth inside a permanent policy generally enjoys tax-deferred treatment, and death benefits are typically paid to beneficiaries free of income tax under current rules.

Conclusion

Being your own boss means taking charge of creating both opportunities and risks, and that includes protecting the people and projects that rely on your income. The right life insurance policy can keep a household on stable footing and give a business time to adjust if the unexpected occurs. With more options available online, building coverage that matches your budget and long-term plans is within reach—especially when you size the policy to both family needs and business continuity.