If your job includes life insurance, that’s a valuable benefit — and for many people, it’s the first coverage they […]
Working for yourself gives you more control over your business and your income — but it also means you may not have the same workplace benefits that come with a traditional job.
If your family depends on the money your business brings in, life insurance can help provide financial support if you pass away.
Let’s discuss what type of policy can fit the way you work and live.
The best option depends on how long you expect your biggest financial responsibilities to last. For a self-employed person, that might include a mortgage, children, business debt, or the years it may take to build the business into a more stable position.
A 10-year term life insurance can make sense if you want affordable protection for a shorter period and expect some of your financial obligations to decrease within the next decade.
It may be a good fit if you are:
Example: A self-employed consultant has eight years left on a business loan and children who are already in their late teens. A 10-year term may provide protection during the years when those financial responsibilities are still at their highest.
A 10-year term may be less suitable if you have very young children, a long mortgage, or expect your family to depend on your income for much longer than 10 years.
A 20-year term life insurance can be a strong option if you want protection through a longer stage of life. It can work well for self-employed Canadians with young families, a newer mortgage, or business obligations that may continue for many years.
It may be a good fit if you are:
Example: A café owner with two young children and a new mortgage may choose a 20-year term. That coverage can help protect the family through the years when the children are growing up and the mortgage balance is still significant.
A 20-year term may be more coverage than you need if your major debts and family responsibilities are likely to end much sooner.
Term 100 life insurance is designed to provide permanent life insurance coverage rather than protection for a set number of years. It can be useful for someone who wants coverage to remain in place for life, not just while the business or mortgage is active.
Unlike some other permanent life insurance products, Term 100 does not include an investment or cash-value component. That simpler structure can make it more affordable for people who mainly want lifelong insurance protection.
It may be a good fit if you want to:
Example: A 55-year-old small business owner has most of the mortgage paid off and adult children, but still wants to leave money behind for final expenses and family support. Term 100 may be a better fit than another 10- or 20-year policy.
Term 100 may not be the best choice if your main goal is to get the largest amount of coverage at the lowest initial cost for a temporary need. In that case, Term 10 or Term 20 may be more practical.
The right choice really comes down to one question: how long do you expect your family or business to depend on your financial support?
If you’d like a second opinion, apply for a quote today and get a free, no-obligation consultation with one of our licensed advisors.
Your life insurance needs can change as your business and personal life change. It is worth reviewing your coverage when:
A quick review can help make sure your coverage still matches the responsibilities you have.
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