When you work for yourself, you call the shots — but you’re also responsible for your own financial safety net. That includes life insurance.
Being self-employed, a freelancer, or a gig worker doesn’t disqualify you from coverage. It just means you’ll need to show proof of income a little differently and think through what happens to your loved ones (and your business) if something happens to you.
Here’s how to find the right policy — even when your income isn’t predictable.
How much life insurance do self-employed workers need?
Most financial experts recommend coverage worth 10 to 15 times your annual income. But if you’re your family’s main source of income — and don’t have workplace benefits — you may want more.
Some insurers will let you apply for coverage up to 40 times your annual income, depending on your age and health.
“Regardless of whether you’re employed by a company or file a 1099, insurers use your past year’s earned income to determine how much life insurance you can qualify for,” says Jordan Schreer, life insurance expert at Policygenius.
That means if you earned $50,000 last year, you could potentially qualify for up to $2 million in coverage — though most people don’t need that much.
A licensed agent can help you find the sweet spot: enough to protect your family, without overpaying for coverage.
Learn more >> How much life insurance you need
How to calculate your coverage needs
When your income varies month to month, it helps to take a step-back view of your full financial picture. The DIME method can help you calculate how much life insurance you should buy:
Debts: Add up what you owe — credit cards, student loans, business or car loans, etc.
Income: Multiply your annual income by 10 to 15. Include every revenue stream — clients, side hustles, even cash tips.
Mortgage: Factor in your remaining mortgage or rent payments.
Education: Consider future education costs for your kids (or yourself).
Add these together for a realistic estimate of your total coverage needs.
How to shop for life insurance when you’re self-employed
Once you know your target coverage amount, applying is simpler than you might think.
Steps to get covered
Gather your paperwork. Recent tax returns, proof of identity, and residency documents.
Compare quotes. Use an online marketplace like Policygenius to find affordable options.
Apply and complete your phone interview. You’ll answer basic questions about your health, lifestyle, and income.
Take a free medical exam (if required). Think of it as a quick wellness check — not a reason to worry.
Review your offer and sign your policy. Then pay your first premium and get ready to sleep better tonight.
You don’t have to calculate everything yourself. Talk to a Policygenius agent — they’ll help you find the right policy and walk you through every step.
Learn more >> How the life insurance application process works
The best life insurance policy for freelancers
For most self-employed people, term life insurance is the simplest and most affordable option.
It provides coverage for a set period — usually 10, 20, or 30 years.
It’s significantly cheaper than permanent life insurance.
You can cancel or adjust your policy if your situation changes.
A 35-year-old non-smoker can expect to pay around $29 per month for a 20-year, $500,000 term policy, according to the Policygenius Life Insurance Price Index.
Learn more >> Current life insurance rates
How your job affects your life insurance rates
If your work involves higher-risk activities — think construction, fishing, or mining — you may pay a bit more for life insurance.
But if you’re a rideshare driver, photographer, designer, or Airbnb host, your job is unlikely to affect your rates.
Other factors like age, gender, health, and lifestyle typically have a bigger impact on what you’ll pay than your job title itself.
Learn more >> High-risk life insurance
Are life insurance premiums tax-deductible for the self-employed?
Unfortunately, no — life insurance premiums usually aren’t tax-deductible.
The only exception is if you run a business and offer group life insurance to your employees. In that case, the premiums you pay on their behalf may be deductible as a business expense.
For typical freelancers and 1099 workers, however, you can’t deduct personal life insurance premiums.
Beyond shopping for life insurance, we recommend full-time gig workers set up a private benefits package that includes health or disability insurance and retirement savings accounts, to mimic traditional workplace perks.
The bottom line
If you’re self-employed, you’ve already built financial independence — life insurance just helps you protect it.
The right policy can replace your income, pay off debts, and keep your family secure if something unexpected happens.
Compare quotes with Policygenius to find the best coverage for your budget. Our licensed experts don’t make a commission, so the only thing they’re selling is peace of mind.
