You're the boss. Who covers your family?
Life insurance for people who work for themselves
Free to useNo obligationLicensed agents only
When you work for yourself, there's no group life plan at work. Answer a few quick questions and we'll match you, free, with a licensed agent who works with self-employed people.
- Free matching service. There's no cost to compare
- Options for your family, your partners and your lenders
- Takes about 2 minutes, with no obligation to buy
Why self-employed people need their own coverage
No employer group life
Many employees get basic life insurance through work. When you work for yourself, nobody provides that, so any coverage you have is coverage you arranged yourself.
Your family runs on business income
If the business stops when you stop, so does the paycheck your household depends on. A policy can help replace that income while your family adjusts.
Key person and buy-sell needs
If an owner or key person dies, a business may need cash to keep going or to buy out their share. Life insurance is a common way to fund a buy-sell agreement.
Some loans call for it
Some lenders ask business borrowers to carry life insurance and assign it as collateral, so the loan can be repaid if the owner dies. Check your loan terms.
- 01
Sole proprietor or freelancer
You are the business. Coverage sized to your net income can help your family keep up with the mortgage and bills.
- 02
Owner with employees
People depend on you beyond your household. Key person coverage can help the business through a hard transition.
- 03
Partners or co-owners
A buy-sell agreement funded with life insurance can let surviving owners buy a deceased partner's share from their family.
- 04
SBA or bank borrower
If your lender wants life insurance assigned to the loan, an agent can help you find a policy that fits the requirement.
- 05
High earner wanting cash value
Permanent policies such as whole life or IUL build cash value alongside the death benefit. An agent can explain the trade-offs and costs.
Life insurance for the self-employed and business owners
Small Business Owners by the Numbers: The Coverage Gap
The U.S. has 36.2 million small businesses, and 82.3 percent of them have no employees, according to the SBA Office of Advocacy's 2026 report. BLS data show a combined 9.8 million people were unincorporated self-employed in 2025, and only 40 percent of private-sector workers at establishments with fewer than 50 workers had access to employer life insurance in March 2026.
Editorial Team · September 30, 2026
Does an SBA Loan Require Life Insurance? SOP 50 10 Rules
Sometimes. Under SBA SOP 50 10, life insurance is required when a Standard 7(a) or 504 loan is not fully secured by collateral and the business is a sole proprietorship, a single-member LLC, or otherwise depends on one owner. The lender must get a collateral assignment of the policy, and you pay the premiums.
Editorial Team · September 30, 2026
Best Life Insurance for Self-Employed People (2026)
The best life insurance for a self-employed person depends on what you need to protect: Banner Life and Protective publish level term up to 40 years for income and debts, Northwestern Mutual lets term owners convert to whole life regardless of health, and Guardian, MassMutual and Principal publish key person and buy-sell planning for business owners. We compared six insurers using their own published terms, ratings and NAIC complaint data.
Editorial Team · September 30, 2026
Is Life Insurance Tax Deductible for Business Owners?
Usually not. Federal law bars a deduction for life insurance premiums whenever you or your business is directly or indirectly a beneficiary, and a sole proprietor's policy on their own life is a personal expense. The main exceptions are premiums a business pays as employee compensation, such as group-term life coverage or an executive bonus plan where the employee's family is the beneficiary.
Editorial Team · September 30, 2026
Key Person Life Insurance: How It Works and How It's Taxed
Key person life insurance is a policy a business owns on an owner or employee whose death would cost it money; the business pays the premiums and receives the payout. Premiums are generally not deductible, and the payout stays fully income-tax free only if, before the policy is issued, the business gives the insured written notice and gets their written consent, and an exception in IRC section 101(j) applies; the business also reports the policy on Form 8925 each year.
Editorial Team · September 30, 2026
Life Insurance for Self-Employed People: How to Get Covered
If you work for yourself, no employer plan covers you, so the life insurance your family relies on is the policy you buy. Many self-employed people start with an individual term policy sized to their net profit, debts and business obligations, then add business-owned coverage such as key person or buy-sell insurance if others depend on the business.
Editorial Team · September 30, 2026
Common questions
Can I get life insurance if I'm self-employed?
Yes. Individual life insurance isn't tied to an employer, so freelancers, contractors and business owners can apply the same way anyone else does. Insurers look at age, health and tobacco use, and for larger amounts they may ask for proof of income, such as tax returns.
How do I prove income for life insurance when I'm self-employed?
Insurers usually rely on tax returns rather than pay stubs. For larger policies they may ask for recent personal returns, business returns or financial statements. Requirements vary by insurer and coverage amount, so ask your agent what the carrier needs before you apply.
Are life insurance premiums tax-deductible for self-employed people?
Generally no. Premiums for a personal policy on your own life are usually not deductible, even when you're self-employed, and the rules for business-owned policies are narrow. Tax treatment depends on who owns the policy and who the beneficiary is, so talk with a tax professional before counting on a deduction.
What is key person life insurance?
Key person insurance is a policy the business owns on someone whose death would seriously hurt it, often an owner or top earner. The business pays the premiums and receives the benefit, which can cover lost revenue, hiring or debts. Special IRS notice-and-consent rules can apply to employer-owned policies.
How does life insurance fund a buy-sell agreement?
Each owner, or the business, holds a policy on the other owners. If one dies, the benefit provides cash to buy that owner's share from their family at the price the agreement sets. Have an attorney draft the agreement, then size the coverage to match it.
Do SBA loans require life insurance?
Sometimes. Lenders making certain business loans, including some SBA-guaranteed loans, may require life insurance on owners and a collateral assignment to the lender. It depends on the loan and the lender. Read your loan terms, and ask your lender what coverage amount and assignment they need.
How much life insurance does a business owner need?
Start with your family's needs: years of income, the mortgage and other debts, and future costs like college. Then add business needs separately, such as a loan balance, key person value or a partner buyout. An agent can help you decide whether one policy or several fits better.
Is this service free, and are you an insurance company?
The matching service is free. We're not an insurer or an agency. We connect you with a licensed agent who can review your options and quote policies. You're never obligated to buy, and any policy's price and approval depend on the insurer's underwriting.