Best Life Insurance for Self-Employed • Benzinga – Benzinga
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If you work for a big company, chances are your employer has a life insurance policy for you. But what if you work for yourself? In that case, not only do you have to pay for your own life insurance, you’re in charge of finding the best deal. If you’re self-employed, you’re the boss when it comes to the best life insurance. The real problem is finding a life insurance policy that fits your needs and is affordable. Let Benzinga help you find the right life insurance policy at the right price.
The Best Life Insurance Carriers for the Self-Employed
If you’re self-employed and looking for life insurance, the hardest part may well be where to get started. Let Benzinga take the hard part out and steer you in the right direction with its picks of best life insurance for the self-employed.
Ladder
Ladder life insurance allows you to adjust your death benefit at will. Whether you’re looking to increase or decrease your death benefit, Ladder makes it easy for you to adjust your policy.
Ladder life insurance specializes in term life policies. Plans start at $100,000 and go to $8 million. The company sells policies in all 50 states (including Washington, DC), through partner issuers Allianz Life Insurance of New York and Allianz Life Insurance of North America. The company offers no-medical exam policies for those who qualify, up to $3 million. Restrictions include:
No whole life policiesNo policy ridersNo coverage past 70 years
get started
securely through Ladder’s
website
Disclosure: Ladder Insurance Services, LLC (Cal. license # 0K22568; Ark. license # 3000140372) offers term life insurance policies: (i) in New York, on behalf of Allianz Life Insurance Company of New York, New York, NY (policy form # MN-26); and (ii) in all other states and the District of Columbia on behalf of Allianz Life Insurance Company of North America, Minneapolis, MN (policy form # ICC20P-AZ100 and # P-AZ100). Only Allianz Life Insurance Company of New York is authorized to issue life insurance in the state of New York. Insurance policy prices, coverages, features, terms, benefits, exclusions, limitations and available discounts vary among these insurers and are subject to qualifications. Each insurer is solely responsible for any claims and has financial responsibility for its own products.
Age Requirements
20 – 60
1 Minute Review
Ladder offers policies with no hidden fees, on-the-spot underwriting and a streamlined website. Coverage ranges from $100,000 to $8 million and you can adjust your coverage over time as needs change.
You can choose a 10, 15, 20, 25, or 30-year term. Ladder also offers up to $3 million in coverage without a medical exam — just answer a few health questions and complete the application to get an instant decision.
Ladder doesn’t impose policy, cancellation or processing fees and you can cancel at any time. Take three steps to get Ladder insurance:
You can apply for life insurance coverage with Ladder right now via the online application.
Find out whether you’re instantly approved.
Accept your offer — including affordable prices and no hidden fees.
Its price lock guarantee ensures your premium won’t increase as your health changes and you age. Policies in New York are issued by Allianz Life Insurance Company of New York and in the other states and DC by Allianz Life Insurance Company of North America. You can receive a refund within the 1st 30 days if you’re unhappy with your coverage and you can cancel at any time.
Best For
Term life insurance
Online application
Policyholders between 20 to 60 years of age
Pros
Up to $8 million in coverage
Price lock guarantee
No policy fees
30-day money-back guarantee
Adjustable coverage
Cons
No policy riders
Term life insurance only
Fabric
Founded in 2017, Fabric sells accidental death and term life insurance through its mobile app and website. With Fabric, it’s all about ease and accessibility. The process is simple, taking just 10 minutes to complete.
Fabric sells term life policies anywhere from 10 to 30 years in duration, with ages ranging from 21 to 60 years old. Policy values begin at $100,000 and go to $5 million. No-exam term life insurance maxes out at $1.5 million.
Term life policies come with the option of an accelerated death benefit rider, allowing you to convert your policy to whole life after age 65. Fabric is available in all states except Montana and New York. Highlights include:
No-exam policies up to $1.5 millionInsurer-sponsored donations to charitySimple mobile app and online applications
get started
securely through Fabric Life Insurance’s
website
Age Requirements
21 – 60
1 Minute Review
Fabric offers term life insurance, free digital will creation and other tools to help you better your family’s financial life. They’re the one stop shop for young families looking for financial security.
Fabric offers 10, 15, 20, 25 and 30 year term options and coverage ranging from $100,000 to $5 million.
Fabric offers highly reviewed online customer service through its app and website and has the highest TrustPilot rating in its class.
Best For
No exam required for most
Those who want to avoid the hassle of insurance salesmen
New or expecting parents looking for a broader suite of financial tools
Pros
Affordable premiums
Free digital will creation
Free app with helpful tools for parents
Apply and see your rate in less than 10 minutes
Cons
No term life coverage in New York or Montana
Can’t increase coverage after purchasing
Aflac
Founded in 1955 and based in Columbus, Georgia, Aflac is the largest provider of supplemental insurance in the world. It also sells life insurance. Although specializing in group and workplace policies, the company does offer individual policies for the self-employed.
Aflac offers both term and whole life coverage up to $500,000. Term life plans come in increments of 10, 20 and 30 years and can be purchased either individually or through the workplace. Term life policies max out at $500,000 for ages 18 to 70 ($250,000 for ages 51 to 70). Aflac also offers guaranteed issue policies up to $50,000. Available riders include:
Advanced claim paymentAccelerated death benefitSpouse term rider Waiver of premium benefitAccidental death benefitChild term rider
Nationwide
Founded in 1925, Nationwide is one of the largest financial services companies in the world. The company offers a vast array of insurance products including home, auto and life.
When it comes to life insurance, Nationwide sells both term and permanent coverage. Term life policies range from 10 to 30 years, up to the age of 95. Term life is renewable and convertible to permanent insurance. Whole life policies offer fixed premiums up to the age of 100. Universal life policies include:
Nationwide CareMatters II: Hybrid policy, combines universal life with long-term care.Nationwide Survivorship Indexed UL: Policy for 2 people, benefit paid after both persons die. Nationwide Indexed Universal Life Accumulator II: Best for higher income potential. Includes death benefits and tax advantages for greater cash value.Nationwide Indexed Universal Life Protector II: Permanent life insurance with fixed benefits. Includes multi-layer tax protection and greater cash value potential.
Types of plans
Term, Whole, Universal, Variable
Compare Quotes
securely through Nationwide’s
website
Haven Life
Haven Life specializes in term life coverage and sells policies online. Applications take typically just 25 minutes. Haven Life policies are issued by the parent company, MassMutual, and applicants up to age 59 can qualify for $1 million in coverage with no medical exam. The company offers two types of term life policies:
Haven Term: Haven Term offers up to $3 million in coverage for people under the age of 60. While some can qualify for no exam up to $1 million, most applicants must take a medical exam.Haven Simple: Specializes in no-exam life insurance up to $500,000. Applications are processed digitally and available in all 50 states except California, Delaware, South Dakota, North Dakota and New York.
get started
securely through Haven Life Insurance’s
website
Disclosure: Haven Term is a Term Life Insurance Policy (ICC21 Haven Term in certain states, including NC) issued by C.M. Life Insurance Company (C.M. Life), Enfield, CT 06082. In New York (DTC-NY) and California (DTC-CA), it is issued by Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA 01111-0001.
Age Requirements
20 – 64
1 Minute Review
Haven Life is an innovative life insurance agency that offers a simple way to obtain term life insurance for those between the ages of 18 and 64. You can choose a term length of 10, 15, 20 or 30-years. What’s unique about this term life insurance is the way you can complete an application online and, if approved, digitally purchase coverage.
Haven Life is backed and wholly owned by Massachusetts Mutual Life Insurance Company, a trusted A++ business. You’ll get a user-friendly experience from Haven Life and enjoy MassMutual’s financial strength. Haven Life focuses on personable customer service (it has a rating of 4.8 out of 5 stars) and convenient modern technology.
Best For
Those looking for a digital buying experience
Relatively healthy individuals with no preexisting conditions
Individuals under the age of 64
Those looking for affordable premiums with robust coverage and additional benefits
Pros
Simple application process
Instant decision on coverage. If approved, it can start immediately
May not need a medical exam
Competitive rates, more affordable than industry averages
Excellent customer support
Cons
No permanent life plans offered
Higher rates for preexisting conditions
No coverage if you’re over 65
Types of Life Insurance for Self-Employed
When it comes to different types of life insurance for the self-employed, you have a variety of choices — whether you’re looking for life insurance for a limited time or your whole life.
Term life insurance
Term life insurance is the most popular and affordable type of life insurance. Term life policies are sold in increments of 1, 5, 10, 15, 20, 25 and 30 years. Because term life is set for a predetermined period of time and holds no cash value, it’s the cheapest type of life insurance. Benefits of a term life policy include:
More affordable than whole lifeExam-free policies availableGreater death benefitsConvertible to whole lifeCan be resold
Term life policies are best for shorter periods at lesser values. Most people buy term policies to cover a certain period of time or because they’re more affordable. Term life policies hold no cash value but can be resold.
Whole life insurance
A whole life insurance policy lasts exactly that: your whole life. Because it’s permanent and carries with it a cash value, it’s more expensive than term life, sometimes as much as 10 to 15 times more. Because whole life insurance has a cash value, you can take loans from it or even cash it in. Proceeds that accrue in your account are tax deferred, and the death benefit is tax free.
Whole life policies are more affordable when you’re young and because it’s a permanent policy, your rates get locked in. While it does have a cash value, the majority of your premiums goes towards the death benefit.
Variable life insurance
Variable life is a permanent form of life insurance. Also known as cash value insurance, like whole life, it carries with it a cash value. But that’s where the similarities end. While the cash value in a whole life policy is controlled by the insurance company, variable life allows you to decide where the money goes.
Types of variable life insurance include:
IndexedGuaranteedVariable
Most people buy a variable policy for the investment opportunities. Variable life insurance is like having a mutual fund account with a death benefit. Gains are tax-deferred until time of withdrawal, and premium payments are flexible.
Universal life insurance
Like whole life, universal life insurance is a permanent policy that has a cash value. Universal life allows you more flexibility than a standard whole life policy, however, in that you can choose how much money you want in your cash account or use it to pay your premiums. You can use the cash value to:
Take out a loanWithdraw cashPay your premiums
For example: You can adjust the amount of your premiums and even the death benefit itself. If you find yourself strapped, you can use the cash value to pay your premiums. Universal policies do come with risk, and if your cash value declines too much, your policy can be canceled.
Other types of life insurance include
Guaranteed issue Simplified issueFinal expenseGroup lifeAccidental death and dismembermentKey life
When is the Best Time to Buy Life Insurance?
The best time to buy life insurance is when you’re young. Generally speaking, as long as you’re in good health and a non-smoker, if you buy a life insurance policy when you’re young, you’re going to be able to lock-in low rates.
Comparing the Best Life Insurance Plans
If you’re self-employed, finding the right life insurance policy is just a matter of getting off on the right foot. Let Benzinga show you the way with its vast array of articles on life insurance.
Frequently Asked Questions
Can you get life insurance if you’re self-employed?
1
Can you get life insurance if you’re self-employed?
asked 2022-02-18
Philip Loyd, Licensed Insurance Agent
1
Being self-employed is not an impediment to getting life insurance. Anyone, as long as their application is approved, can get life insurance, and that includes the self-employed, the unemployed and those employed by others. Life insurance for the self-employed is often more expensive because they have to pay 100% of the costs compared to those working for businesses where the company pays for some or sometimes all the premiums.
Answer Link
answered 2022-02-18
Benzinga
Is life insurance a business expense for the self-employed?
1
Is life insurance a business expense for the self-employed?
asked 2022-02-18
Philip Loyd, Licensed Insurance Agent
1
If you own a business and pay life insurance premiums for your employees, it’s considered a business expense and is tax-deductible. If you’re self-employed, however, you don’t get that same privilege. While many expenses you pay to run your business are tax-deductible, life insurance is not.
*One exception to the rule is when purchasing a life insurance policy for your business assets. In some instances, you may be allowed the cost of those premiums on Schedule C, Form 1040 from your tax returns.
Answer Link
answered 2022-02-18
Benzinga
