Life Insurance for Self-Employed People in the UK

If you're self-employed, you already know that you don't get sick pay, you don't get death in service benefit, and if you stopped working tomorrow, the money stops too. That makes life insurance not just useful but essential.

Here's everything you need to know.

You have no employer safety net

Employees often have some level of life cover through work without even realising it. Death in service benefit, income protection, group life policies. As a self-employed person, you have none of that. If something happened to you, your family would be entirely reliant on whatever savings you have and whatever cover you've put in place yourself.

That's a vulnerable position to be in, and most self-employed people don't fully appreciate it until they sit down and think it through.

Your income is your business

Many self-employed people are the sole earner in their household. A mortgage, bills, school fees, family holidays, all of it depends on you being able to work. Life insurance doesn't protect your income while you're alive but it protects your family's financial future if you're not.

Think about business debts too

If you run a limited company or have taken on business loans, it's worth considering what happens to those debts if you die. In some cases they can fall to directors or personal guarantors. Your adviser can help you think through whether you need personal cover, business cover, or both, and make sure nothing is left exposed.

What about income protection?

While life insurance pays out if you die, income protection pays out if you're too ill or injured to work. For self-employed people, this is worth considering alongside life insurance. The two products do different jobs and many self-employed people benefit from having both. Your adviser can look at your whole situation and help you decide what makes sense.

The good news

Life insurance premiums are often very affordable, even for self-employed people with variable incomes. And because you're not relying on an employer policy, you have full flexibility to choose the cover that suits your situation. You're not limited to what your employer has negotiated. You can get exactly what you need.

• Choose your own level of cover based on your actual needs
• Pick a term that suits your mortgage and family situation
• Cover stays with you regardless of how your business changes
• Premiums can sometimes be paid through a limited company
• Get whole of market rates, not a single employer's deal

We work with self-employed clients every day

At Fambly.uk we understand the unique position self-employed people are in. Our advisers will search the whole market to find the most competitive cover for your circumstances, completely free of charge. There are no fees, no pressure, and no obligation.

It starts with a quick conversation about your situation. We take it from there.