Self-Employed Life Insurance

If you’re self-employed, you may understandably be worried about what might happen should you be unable to work for a while. How would the mortgage get paid? How will the bills get paid? How could I cover the cost of a replacement or substitute? Or you may even be concerned about what would happen to your loved ones if you were to pass away. 

Luckily, there is a whole package of life insurance, or sickness insurances that could help to put your mind at ease. We’ll outline these products for you here, but for more detailed information, please speak to one of our expert advisers on:

01392 436 193

Do I need life cover if I’m self-employed?

Being self-employed certainly comes with its benefits, but unfortunately it doesn’t often come with work benefits. Things like sick pay or death in service are often forgotten about, or simply not set up from the get-go, which could leave you vulnerable if something were to happen. 

Taking out a life insurance policy, or cover for if you become unwell may help you feel more secure, knowing that if you passed away or were unable to work for a while, your everyday expenses would be covered. 

Through Cavendish Online, we can help you set up plans to help cover things like:

What kinds of plans are available for people who are self-employed?

As well as the usual types of cover available to everyone - mortgage cover, life cover, critical illness cover and income protection, there are also policies specifically for people who are self-employed. 

You’re not tied into just having one type, and most people mix and match personal plans and business plans to make sure they are adequately covered in every area of their lives. 

Here are a few of the plans you may want to consider:

Life Insurance

There are two types of life insurance, whole life and term insurance. Whole life insurance, as the name suggests, would run until the end of your life, whenever that may be. Term life insurance is set up to cover you over a certain amount of time - 15, 20, 30 years for example. 

Life insurance is a helpful plan to have as it could help cover your mortgage, business loans, utility bills and  your family if you were to die.

There are pros and cons to both options, you can find out more in our article - Whole and term life insurance: Which is better?

Critical Illness cover

Critical Illness cover is another form of term insurance, but instead of just protecting you in the event of death, it protects you if you become critically ill. When you purchase a critical illness plan, your insurer will have a preset list of medical conditions and you could receive a payout if you were to be diagnosed with something on that list. The most common claims are things like cancer, heart attacks and strokes. 

The main benefit of this plan is to either help cover loss of income if you are critically unwell, or to cover home refurbishments if your home needed to be more accessible due to changes in your mobility. 

Please note - some critical illness policies will also pay out upon death. Please check with your insurer/adviser to be sure what you are covered for.

Income Protection

Like critical illness cover, income protection is designed to pay out if you become unwell. Unlike critical illness, however, income protection does not have a predefined list of medical conditions that you have to meet to make a claim.

If you have income protection, you can make a claim by simply being signed off work by a doctor. Once the waiting period is over (you set this when you apply for the policy) then you will start receiving monthly payouts to help you cover your expenses while you are off ill.

For self-employed people, this is a great option if you don’t have a ‘sick pay’ plan in place for yourself. 

Other types of business protection

Whilst we’ve covered the main plans available, If you run a limited company, there are a few more options available to you - Executive Income Protection, Shareholder Protection, Key Person Insurance, Business Loan Protection and Group Life Cover (Death in Service).. 

To learn more about these plans, please head to our Business Protection Page or speak to one of our experts on

01392 436 193

How much cover do I need?

Unfortunately, there is no one size that fits all! Your protection needs may be different to others, so we really can’t say. We do have a few pointers though on how you can figure it out. 

• Work out how much your mortgage is.
   

• Work out how much your expenses are on a yearly/monthly basis.
   

• If you have savings, work out if you would be comfortable using them if you were to become ill and unable to work.
   

• If you have savings, work out if you or your loved ones would be comfortable using them if you were to die.
   

• If you have children, how long might they need financial support?
   

• Work out what your budget is for life insurance. 
   

For more help, please take a look at our article - How much life insurance do I need?

How can I get cover if I’m self employed?

For term life insurance, you could get started online, or to look into any other form of life cover, income protection, critical illness cover or business protection, please call in to speak to one of our advisers. They can provide advice and quotes free of charge, and we will earn commission if you take out a policy - this is covered in the quotes, so there are no hidden charges!

Please note: The insurance products offered by Cavendish Online have no cash-in value at any time. If you stop paying your premiums your cover will stop, your policy will end, and you will receive no benefit. If you have not claimed before the end of your chosen policy term, the policy will end, and no benefit will be paid. If you are facing financial difficulty, please contact your insurer before cancelling your policy or letting it lapse. They may have options available that means you don't have to lose the plan.