How to Get the Best Rate on Life Insurance When You Are Self Employed

Buying life insurance can be intimidating when you're self-employed. Many people who work for a business take out life insurance through their employers, so they know they are insured with a reputable company known for providing a good product. You don't have that same assurance when you work for yourself. That means you'll need to do your homework before investing in a life insurance policy to make sure you're getting the best coverage and the best deal. Here are some tips for finding the best life insurance rates when you're self-employed.

Determine Your Needs

The first step you need to take before you purchase a life insurance policy is to determine how much money your family will need in the event of your death. As you may have guessed, your life insurance needs will be greater if you own and operate a business. You'll want your family to be able to manage and continue the business without struggling financially. If they're not involved in the workings of your business as you are, they'll have to hire someone to take care of the business end of things, which brings additional costs. Additionally, your family relies in your income, so you want to get a policy that will provide money to replace your income for several years at least.

Apply When You're Young

As you age and your health deteriorates, getting life insurance becomes more expensive. The younger you are when you lock in your rates, the better. Term life insurance will provide you with a policy where the rate remains the same over the duration of the term. You can purchase 10, 15, 20 or 30-year policies A 30 year policy should carry you through the years during which you have dependents such as children. By the time the term is over, you should have enough saved for retirement and end of life expenses for you and your spouse, so the insurance will no longer be needed. If you want to keep a life insurance policy even after your children are gone and you're retired, purchase a whole life policy while you're young. This type of policy has the added benefit of accruing cash value over the years that can be borrowed against when needed.

Get Healthy

Your health also plays a role in your life insurance rates. If you smoke, stop smoking for a year or more prior to purchasing your policy because smokers pay up to three times as much for life insurance as healthy persons. People with high blood pressure, high cholesterol and weight problems will also need to improve and manage these conditions in order to get the best rates. Don't wait until you have a serious health problem before you apply for life insurance because you may not be able to find an affordable policy then.

In addition to the tips above, you should get life insurance quotes from several companies and inform yourself on insurance matters at Contrary to what you may have heard life insurance rates can be surprisingly affordable and will give you peace of mind knowing that your family is taken care of after you're gone.


Victoria Heckstall is a professional writer who has been making a full time living online since 2011. She loves sharing her expertise through her articles. Currently, she has hundreds of articles published throughout the web.

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