Life Insurance For Business Owners

Why is life insurance so important?

Whatever your business, insurance is vital to protect against worse case scenarios and when things don’t go quite to plan whilst you are carrying out your business. Self-employed individuals need to have life insurance in place to provide financial protection.

Self-employed life insurance

Self-employed life insurance may be even more important than it is for an employed worker. It is commonplace for employed workers to have life insurance as a employee benefit and would receive death in service payments. This is a lump sum given to family if the death happened during their service at work and is calculated using an income multiplier.

As a self-employed business owner, you have to cover this yourself and that is why life insurance for the self-employed is imperative. It is important to note, however, that life insurance premiums are not a tax-deductible expense.

It is also often the case that the self-employed are working in somewhat more dangerous working conditions, such as in manual trades where accidents could be fatal, e.g. roofers, electricians, taxi drivers. Again, making life insurance for self-employed workers even more crucial.

How much life insurance cover is available to the self-employed?

There is no difference in terms of product between life insurance for self-employed business owners or for those employed. The difference often comes from what it will be used for, as employed workers will often have the death in service payments already available. There is no hard and fast rule about how much your life insurance should cover you for when you are self-employed or employed, the difference will be on how good a deal you can get. The amount of cover that you require should be calculated based on how much your family might need if you were to pass away, to pay off debts, continue payments for childcare etc.

Best life insurance for the self-employed

There are several different types of life insurance for business owners and the best option will depend on your age, health, number and age of dependants, length of cover required and how much you can afford. The good news is that the younger and healthier you are, the better life insurance cover you are going to find, whether self-employed or not.

Life insurance advice for the self-employed

Finding a life insurance plan can be tricky to navigate, trying to figure out how much cover you need as well as which type of life insurance cover you will need. FT Rich Mummy has a team of life insurance specialists who work daily with self-employed clients who want to protect their families in the event of their death. By using one of FT Rich Mummy’s experienced life insurance advisers, who specialises in the self-employed, you can feel confident that you are getting the right advice.

FT Rich Mummy will take time to listen to your personal circumstances and how much you can afford to pay as well as the length of life insurance that is required. You can focus on running your business and enjoying the perks of being self-employed.

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