If you're self-employed, you likely have to navigate some additional financial hurdles. To make sure that your loved ones are covered and protected from business expenses after you're gone, you'll also need to purchase a life insurance policy. Below are a few tips for finding the right policy, whether you run a small business or work as a freelancer.

Why Is Life insurance So Important?

If you’re the primary earner for your family, life insurance allows you to keep taking care of them after you’re gone. Depending on your needs and future plans, you might leave enough for your spouse to pay off the mortgage, set up an education fund for your children, or even replace your income indefinitely.

life insurance

Your family may also not know how to run your business without you, which can leave them in a difficult financial situation. If you’ve taken out business loans backed by personal assets, your life insurance policy can help satisfy the debts without financially impacting your loved ones. When deciding how much coverage you need, be sure to consider your business obligations as well as your personal debts.

How Should I Choose a Life Insurance Policy?

Term life policies are designed to expire after a specified period, typically 10 to 25 years. If you don’t pass away while the policy is in effect, you may renew it at a higher rate or simply let it expire. These policies are typically more affordable than other options, which makes them especially popular for self-employed, budget-conscious workers.

Whole life policies, by contrast, never expire. Most of these products include a savings component that builds value over time. Self-employed people often have a difficult time saving for retirement without the benefit of an employer’s 401(k), so whole life insurance can fill the gap. While these policies are often more expensive, many people find the long-term financial security is worth the cost.


Choosing the right life insurance can be overwhelming, which is why generations of business owners in Lorain, OH, have relied on the agents at the Kelley Agency. They have served self-employed individuals throughout the area since 1960, providing individualized service and the advice you need to make the right decision for you and your loved ones. Visit their website for an overview of their products, or call (440) 282-8898 to request a free quote.