5 Self-Employment Insurance Options

Last Updated: March 30, 2019

So, you’ve decided to leave the corporate world behind to embark on a self-employment career? Self-employment gives the freedom and flexibility to be your own boss – but with freedom comes a lot of responsibility. That’s why it’s important to understand all of your self-employment insurance options.

When first starting your self-employment career, you may want to save money. However, insurance is one thing you shouldn’t skimp on. If you’re planning on launching a business or freelance career, here are 5 insurance options for the self-employed.

Quick Article Guide:

  1. Health Insurance
  2. Business Insurance
  3. Disability Insurance
  4. Life Insurance
  5. Liability Insurance

Health insurance

One of the many reasons people don’t leave their jobs is because of their employment benefits. Most of the time employers pay a percentage of your premiums, which makes health insurance affordable for their employees.

health insuranceWhen you venture out on your own, purchasing your own policy can be shocking. There are plenty of options available for your health insurance needs. One resource you can use is Healthcare.gov to help find the best insurance option for the self-employed. They allow you to browse the Marketplace or contact a professional to help you make the right decision.

You can also visit The Association for the Self-Employed to help you find the best policy for your needs. This organization provides a lot of tools and resources for people venturing into self-employment.

Even though your premiums may be more expensive than your previous plan, you may be able to claim a health insurance deduction. Under the Small Business Jobs Act, self-employed individuals can deduct the cost of their health insurance.

As with any insurance purchase, make sure to shop around and speak with a professional. Compare rates and premiums before moving forward with your purchase.

Business insurance

There are countless types of business insurance for your self-employment insurance needs. There is a large range of offerings to cover the gaps in your current coverage. Here are a few examples of business insurance you may need:

  • Loan collateralization ensures that your lender will be backed and paid in full in the case of your death or another incident. Essentially, this is decreasing lenders risk incentivizing them to give you a better rate on your business loan.
  • Cyber-crime insurance can cover the loss of your personal data due to theft.
  • A home-based policy protects your home-based business in case of theft or damage to your work space. This policy would fill in the gap of your homeowners insurance policy.

There are many business insurance options for the self-employed. It’s important to find the best option for your needs, not all plans are necessary.

Disability insurance

Have you ever thought what would happen if you were to become seriously ill or have an accident? Where would your income come from if you were unable to work? This is why it’s extremely important to purchase disability insurance. In chance something were to happen, you want to make sure you’re insured.

Disability insurance can help you take care of your financial needs while you get back on your feet. This type of insurance may help you replace up to 60% of your income. However, there are not many disability insurance options for the self-employed. Look into purchasing a policy with a local professional organization.

Life insurance

Life insurance is important to have at any age. Especially, if you have a substantial debt or a family to support, you want to make sure you protect your family and your assets.

Before you begin researching life insurance policies, you need to understand the difference between permanent life insurance and term life insurance. With term life insurance you select a certain number of years you would like coverage. Maybe you just received a business loan and need insurance to cover the balance of the loan in case of your death.

protect familyAnother reason you may want term insurance is to protect your family’s financial needs for a certain number of years. If you only want to cover your children until they leave your home, term life insurance can be a good life insurance policy to pursue.

Permanent life insurance covers your financial needs for your entire life. If you would like to leave a lasting legacy to your family or a charity you’re passionate about, permanent life insurance may be the policy for you. It’s important to keep in mind that some consumers shy away from permanent life insurance because the premiums tend to be significantly higher than term life insurance premiums.

Determine how much coverage you would like and the amount of time you would like covered. Make sure to include business loans or additional debt you need to protect, so you don’t leave your family holding the bill. Remember permanent and term life insurance are great life insurance options for the self-employed.

Liability insurance

Another great self-employment insurance option is liability insurance. If you’re concerned about negligent claims against your business, you need to purchase liability insurance. There are many different types of liability insurance that can be great options for your needs. Here are a few common liability insurance options:

  • Commercial general liability insurance: This policy protects you against damage to property or bodily injury claims.
  • Professional indemnity insurance: If you provide advice or professional service, this self-employment insurance option covers compensation claims when your business is sued by your clients for making a mistake.
  • Commercial crime insurance: This type of insurance helps protect you against third-party fraud or theft.
  • Product liability insurance: If you provide a product or service to your clients, this type of self-employment insurance protects you against claims caused by your product or service.

There are many different types of liability insurance. Select the best option for your self-employment insurance needs.

The bottom line

the bottom lineWhen you start a business, you may want to find ways to cut costs. It may take you a while to build up a substantial income. However, insurance is not something you should skimp on.

Instead of adding more stress to your life and stretching your day thinner, let us help. At Term Life Advice, we’ve helped thousands of businesses and families with their life insurance needs and we can help you too! Our agency is licensed to sell insurance in every state, and we offer more than 60 years of collective experience.

We work with 63 top-rated life insurance companies to help our client’s find the most affordable life insurance coverage. We also offer no exam life insurance if you’re schedule is too full to meet with a nurse, or if need insurance in a hurry to collateralize a business loan. Give us a call today at 855-902-6494 for some accurate rates to help you get started, or you can request an online quote below to instantly compare your options.

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