10 Reasons You Need Insurance As A Self  Employed

As a self-employed person, insurance is the most important thing for you because you’re not living under someone else’s shadow anymore. You need to guarantee your own assets when you’re an owner of a business.

The reasons you need insurance as a self-employed are too many. For example, you’re going to need insurance when you fall sick, when you become unable to work when you pass away, leaving your family in financial distress. 

If you’re running your own small shop, supermarket, or any kind of small or medium-sized business, you need to know why it’s important for you to have insurance as a self-employed.

People usually look for advice from experts on this kind of matter. If you’re looking for one too, then you’ve come to the right place, as you’re going to get some valid reasons why you need insurance as a self-employed.

1. Lacking Employer Benefits:

In organized companies, employers generally have employer benefits to cover their needs. But when you’re self-employed, you lack all the employer benefits.

Benefits Like employee provident funds, health and life insurance covers, Vehicle covers, etc. 

Because of this, you may face some kind of difficulties in the future if you don’t get fast on buying insurance for yourself.

As a self-employed person, this is one of the most important reasons you need insurance as a self-employed. It would help if you secured all these things all by yourself for your family. 

You need to make sure your family, along with your business, stays out of any loss. Also, make sure to secure your family’s bright future by investing some extra money toward your retirement and other financial goals, which include your children’s education, marriage and other needs.

If you don’t take the necessary steps for this kind of essential need early, you may face some difficulties in life ahead. Buy necessary insurance to prevent all the mishaps from happening. 

2. Tax Benefits As A Self-Employed:

Did you know you can get provided with tax relief under section 80C of the Income Tax Act by term insurance? Yes, it’s true, and you should definitely buy term insurance so that you don’t have to worry about an enormous amount of tax in the future.

You’ll be very glad to know that the term insurance premium, along with your other investments, can reduce taxable income by up to $1.816 in a financial year.

You can also use tax-saving schemes in order to reduce your personal income tax. Save as much of your earnings for your family as possible by buying insurance. Besides, the big news is that you can do it even as a self-employed taxpayer. Take these intelligent steps to drop the load of excess tax.

3. People Depending On You Financially:

As a self-employed person, you know that a lot of people in your life depend on your earnings. You have to make sure they’ll be stable financially even when you’re not with them anymore.

Death of yours can be excruciating and heartbreaking for your family and also for the people who love you and adore you. But those who depend on you financially will break down not only emotionally but also financially. It’s your responsibility to make sure they don’t fall into a place where they don’t have any financial security.

From your family to your loan officer can fall into a significant financial void as they count on your income regularly. You need to ensure at least an impermanent solution for them after your demise so that they don’t face difficulties. You can do that by buying life insurance easily.

Insurance won’t let your loved ones be in distress or pressured financially, making sure they only suffer from excruciating emotions after you pass away. Among all the reasons you need insurance as a self-employed, this one is the one that’ll protect your family financially even after you pass away.

4. Inherit your Debts:

This is a normal thing for entrepreneurs to take personal debts in order to elevate their business. After taking these debts, they continue paying them back in some months or years with interest.

But you never know what kind of events or uninvited occurrences the future holds.  If you pass away before you pay back all your debts, then the liability will pass on to your family members.

In such cases, life insurance can be a reliable option as a life insurance payout can help salvage this kind of problem, and your family members won’t have to worry about financial crises much.

Debts are a burden that you live with every day. You constantly have pressure on you to pay them back with interest. Take the help of insurance to reduce the burden even on your family after your demise.

You can ensure the safety of your family members after you pass away. Don’t take chances and take up life insurance as soon as possible.

5. Costs Of Business Ownership Transfer:

As an owner of a business, you need to consider the fact that after you pass away or become unable to work, you have to transfer the ownership to the next generation, and that obviously has costs of its own.

But whoever you transfer the ownership to can’t catch up with everything instantly. They may be in need of some time and money to get the business back to where it was before and continue the business 

Ownership costs include any loans and financial obligations that normally occur in a business. Also, if you have taken any loan for branding and expansion activities of your business, your term life insurance can cover it.

So to secure any extra expenses for your business in the future, you need to take life insurance as soon as possible to avoid any loss or delay in your business. You can’t avoid this reason even if you avoid all the other reasons you need insurance as a self-employed.

6. Single Premium Paying Option:

You can’t ensure a steady income every month when you’re a self-employed person. That means paying premiums on a regular basis can be difficult for you.

Don’t worry, as you can opt for a single premium term insurance. You can enjoy all the benefits by paying only one single premium whenever it’s good for you.

This way, you can enjoy all the benefits without worrying about paying premiums every now and then. You can also enjoy maximum coverage till the policy term ends.

Your family will be safe from any kind of financial crisis this way, too, and you don’t have to worry about any occurrence due to which your expenses get higher. Your business is also protected from any sudden market conditions, and it won’t matter much how your business performs.

7. Ensure Financial Assistance In The Event Of Physical Illness Or Disabilities:

As a self-employed person, it’s necessary to take financial precautions in case you face any illness or disabilities in the future so that your business doesn’t stop running as the world moves on with or without you, and so should your business.

Term life insurance can help you in such unwanted events as it comes with many benefits, like opting for additional cover for critical illness and also coverage that includes disability at a designated additional premium at the time of purchasing.

If in the future you face a serious illness or accident and you’re a policyholder, then you’ll get a sum of money that will assure your first diagnosis expenses under the plan.

But lamentably, if you die even after all the medical treatments, then the designated person or your family members will receive your death benefits.

Both these incidents can be very anguish for your loved ones financially and also emotionally, and also they can be badly damaged. I don’t know about emotional damage, but you can indeed reduce financial damage by buying insurance.

If you don’t get smart and buy term life insurance right now, then your family may suffer very much financially after you pass away, or you become unable to help them, so ensure a secured future for them by buying insurance.

8. Safety Of Your Products:

The products that you sell are the biggest asset of your business. That’s why you need to ensure the utmost safety of your valuable products by buying insurance.

As an owner of a business empire, this is your vital responsibility to buy insurance for the products that you sell in the market. Because in any damaging occurrence, your business will face a huge loss if you don’t have any insurance for your products.

Storehouse getting caught on fire. Vehicle carrying products getting damaged, Valuable products getting stolen are some events that may leave you with a great loss. 

If this kind of unexpected accident takes place in your business, the whole thing becomes your problem to solve. Your business also may go down at a rapid speed. As the owner and a self-employed person of a business empire, you should buy insurance for your product so that you can get financial support to re-establish your business from the start without facing any difficulty.

You never know when the jeopardy will hit you hard. so don’t be apathetic about all these. This reason is the most crucial one for your small business, among other reasons you need insurance as a self-employed.

9. Property safety:

Your office building, the house you live in, or any other properties you have to need financial protection, too, as they can be damaged at any time.

You hold the liability solely of your properties as self-employed. So it’s your responsibility to make sure you get the atonement after they get destroyed due to any kind of catastrophe.

You need to buy insurance to make sure of the financial assistance you’ll need in such cases. Without any kind of financial assistance, it’ll become hard for you to cope with any kind of sudden catastrophe.

Insurance will help you according to your needs. Also, it will make sure you get back to standing on your own feet financially in no time, as insurance policies are meant to do just these things.

Without insurance, you’ll get distressed both emotionally and financially. You’ll not be able to find any way to get out of that dark tunnel of property loss.

Your business may fall down if your office building gets destroyed, and your family can become homeless if your house gets destroyed, so don’t take a chance with all these and buy insurance promptly.

Property and vehicle insurance will give you the mental peace that you’re going to need when you’re running a business, as you’ll know that even if anything happens to your assets, you don’t need to worry as you’ll be able to reclaim them with the help of insurance in no time giving you peace mentally and financially.

10. Ensure A Better Future For Your Family And Business:

Your death can be proved as a tragic event for both your family and business. And you surely don’t want that to happen when you leave them alone. Also, if you face any loss in business when you’re alive, you may need immense financial assistance too.

Buy permanent life insurance to save your family and business from falling apart. Permanent life insurances are little costly, but it’ll give you a long-term guarantee of financial support during your lifetime so that both your family and business can run at the usual pace with or without you.

Permanent life insurance doesn’t have any expiry dates, which means your financial assistance is locked for life.

But if you can’t afford permanent life insurance, you can buy term life insurance. It lasts only for some time. The times are specific, and typically, they are 10,20, or 30 years. Term life insurance is not very costly. In fact, it’s very reasonable.

But it has some cons. You have to buy another insurance after the first one expires, and it can be very costly as prices of insurance may get raised over time. Also, when the policy expires on a specific day, you’ll give nothing to show for what you’ve paid into it.


If you’re a person who left an old tedious job and took matters into your own hands and is now running your own business, then you should keep in mind all these reasons you need insurance as a self-employed.

It can be daunting and stressful to keep working without making sure of the safety of your business and family, and assets because you have to cope with all the disasters that’ll come all alone.

Coping with losses and tragedies may become unbearable for you, but with the help of insurance, you can reduce the burden. You can also enjoy more income by reducing income taxes.

There are many kinds of insurance for you to buy. Keep in mind that you’re going to have to buy the right ones to ensure the safety of all the necessary things in your life.

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