Life Insurance

Life Insurance When You're Self-Employed

Viva Insurance Group · Updated July 2026 · 4 min read

Self-employed contractor standing outside his work van with a clipboard in South Florida

When you work for yourself, nobody hands you a benefits package. No group life policy, no HR portal, just you, your income, and everyone who depends on it. That makes life insurance more important for you, not less.

Why the standard advice doesn't quite fit

No employer coverage to build on. Employees often start with 1–2× salary from work; you start from zero.
Your income is lumpy. "10× income" is harder math when income swings season to season.
Your family may also depend on the business, a truck loan, a lease, a business credit card you personally guaranteed. Those debts don't die with you.

How to size it on 1099 income

✓Average your last 2–3 years of net income (what your family actually lives on), then multiply by 10–12.
✓Add personally-guaranteed business debts, loans, leases, lines of credit.
✓Add the mortgage and a cushion per child, subtract real savings.

For most self-employed parents this lands between $500,000 and $1.5 million of term coverage, which sounds enormous until you see the price: often $40–$90/month locked for 20–30 years at typical ages.

In plain English: premiums stay affordable because you're buying pure protection. Skip the "business owner packages" until the basic income protection is in place.

Three tips specific to self-employment

Apply in a good income year. Carriers may ask for tax returns at higher coverage amounts; a strong recent year supports a bigger policy.
Consider no-exam underwriting. Approval in days, no clinic visit to schedule around your business hours.
Add living benefits. With no employer disability coverage, riders that pay out on serious illness matter more for you, see how living benefits work.

Self-employed and unsure what you'd qualify for? We'll run the math on your real numbers, free.

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