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- Self-employed Canadians need life insurance to protect family income, debts, and business interests
- Canada Life, RBC Insurance, BMO Insurance, Desjardins, and Equitable Life offer some of the best options for self-employed individuals
- Term life insurance can provide affordable income replacement, while permanent policies can support lifelong and estate planning needs
- The coverage needs of the self-employed should account for personal debts, business obligations, mortgage, income replacement, and education costs
Self-employment is a significant part of Canada’s workforce, with about 2.7 million Canadians working for themselves in 2026, according to Statistics Canada’s Labour Force Survey. This includes both incorporated and unincorporated business owners. Unlike employees who may have access to workplace life insurance, life insurance can be important for self-employed Canadians too, who have dependants, debts, or business obligations. Some of the best companies offering life insurance for self-employed include Equitable Life, Manulife, Canada Life, RBC, Desjardins, and BMO Insurance.
What type of life insurance do self-employed people need in Canada?
Most self-employed Canadians start with term life insurance for income and debt protection, then consider permanent coverage for lifelong needs, estate planning, or business succession. Term life insurance is often suitable for replacing income, covering a mortgage, or protecting dependants during working years.
Many self-employed buyers combine a longer term for income replacement with shorter terms for specific debts, then convert part of the coverage later if needs become permanent. Whole life insurance can also be a good option for self-employed Canadians who want lifelong coverage, guaranteed cash value growth, and support for long-term estate or business planning.
Other types of life insurance available for self-employed individuals
Depending on how your business is structured and what you want to protect, you may also consider the following types of life insurance:
- Universal life insurance: Combines permanent life insurance with an investment component and offers flexibility in premiums and coverage. However, investment performance and policy costs can affect the policy’s cash value
- Business-owned life insurance: A corporation may own a policy on a business owner or key employee to help fund succession plans, repay business debts, or support a buy-sell agreement
Best life insurance companies for self-employed Canadians
The best life insurance companies for self-employed Canadians include RBC Insurance, Canada Life, Manulife, BMO Insurance, Desjardins, and Equitable Life.
1. Equitable Life
Equitable Life offers permanent life insurance with options to combine term and critical illness protection, making it suitable for self-employed Canadians who want to address multiple financial risks under one insurance strategy.
- Term insurance options: Its term options include 10-Year Renewable Convertible, 20-Year Renewable Convertible, and Term 30/65
- Permanent coverage: For lifelong coverage and wealth planning, Equimax Wealth Accumulator and Equimax Estate Builder participating whole life policies provide different approaches to cash value growth and estate planning. These options may appeal to established self-employed professionals who want their life insurance to serve a broader financial or legacy-planning purpose
- Term insurance riders: Eligible permanent life policies can include additional term coverage, allowing business owners to insure temporary obligations, such as outstanding business loans, while maintaining lifelong protection
- Critical illness riders: Its EquiLiving critical illness insurance rider provides coverage for 26 critical illnesses. A qualifying claim provides a lump-sum payment that can help cover household expenses or business obligations during recovery. EquiLiving provides a payment equal to 15% of the critical illness coverage amount, up to $50,000, for each qualifying early detection condition, without reducing the main critical illness benefit
- Best for: Self-employed professionals interested in permanent life insurance and cash-value growth
The cost of Equitable Life term life insurance for a 40-year-old male non-smoker seeking $100,000 in coverage for a 10-year term is approximately $10.89/month.
The illustrative cost of Equitable participating whole life insurance for a 40-year-old male non-smoker seeking $100,000 in coverage is $266.34 per month with a 20-pay option and paid-up additions as the dividend choice.
2. Manulife
Manulife life insurance plans are a good choice for self-employed individuals whose coverage needs can change as their family or income grows.
- Term insurance option: Manulife’s Family Term is available for Term 10, Term 20, Term 65, or Term Life. It lets self-employed individuals choose from multiple coverage structures depending on their family circumstances
- Business value protection rider: This rider allows business owners to purchase additional life insurance coverage based on increases in business value, without further medical underwriting
- Whole life insurance: Manulife’s participating whole life insurance provides guaranteed premiums, guaranteed cash value growth, and the potential to earn annual dividends. Manulife’s current DSIR of 6.35% can appeal to those looking to build long-term cash value and support estate planning or business succession
- Flexible funding options: Manulife’s Deposit Option allows policyholders to make additional deposits within their policy’s limits to increase coverage without further medical underwriting
- Best for: Self-employed business owners who want life insurance coverage that can grow with their business
The cost of Manulife term life insurance for a 40-year-old male non-smoker seeking $100,000 in coverage for a 10-year term is approximately $9.47/month.
The illustrative cost of Manulife participating whole life insurance for a 40-year-old male non-smoker seeking $100,000 in coverage is $331.71 per month with a 20-pay option.
3. Canada Life
Canada Life offers a broad range of life insurance options that can suit self-employed Canadians as their personal and business responsibilities grow.
- Term life plans: The flagship term life insurance plan, My Term, provides coverage starting from $100,000, ideal for temporary protection
- Term lengths: My Term offers coverage periods from 5 to 50 years, with guaranteed premiums throughout the initial term. This allows business owners to match their life insurance coverage to the repayment period of a commercial loan, mortgage, or other financial obligation
- Business growth protection rider: Available on My Term policies with 10- or 15-year options, this rider lets you purchase additional coverage without new medical underwriting, subject to the rider’s terms. It can help business owners increase coverage as their business insurance needs grow
- Whole life plans: Canada Life also has a strong portfolio of participating plans, including Wealth Achiever, Balanced Achiever, and Estate Achiever. These plans are designed for early cash value growth and maximizing long-term payouts. It may be less suitable if you specifically want a non-participating permanent policy
- Self-employed disability income enhancement: Eligible applicants with at least 20% business ownership may qualify for a 20% increase in insurable earned income, capped at $40,000 annually, when applying for disability insurance. This can increase the income considered when determining eligible monthly disability benefits
- Best for: Incorporated business owners and business succession planning
The cost of Canada Life term life insurance for a 40-year-old male non-smoker seeking $100,000 in coverage for a 10-year term is approximately $12.36/month.
The illustrative cost of Canada Life participating whole life insurance for a 40-year-old male non-smoker seeking $100,000 in coverage is $587.52 per month with a 20-pay option and paid-up additions as the dividend choice.
4. RBC Insurance
RBC Insurance is a strong option for high-income self-employed professionals and business owners who need substantial coverage to protect their families, business loans, or ownership interests. Here’s why it is a good choice:
- Term policy coverage: RBC YourTerm offers coverage from $100,000 to $25 million, making it a good fit for high business liabilities and shareholder agreements
- Term policy length: It is available in terms of 10 to 40 years, allowing self-employed applicants to match protection to long-term financial obligations as their income keeps fluctuating
- Conversion features: YourTerm term policies can also be converted to permanent insurance without new medical underwriting before the policy anniversary nearest age 71. This conversion feature helps business owners maintain coverage as their priorities shift from income replacement to estate planning
- Whole life insurance plans: RBC also offers Growth Insurance and Growth Insurance Plus, participating whole life plans that combine permanent coverage with the potential to earn policyholder dividends
- Dividend options: Both plans offer five dividend options, giving policyholders flexibility in how they use dividends to support their long-term financial goals. Self-employed business owners can choose paid-up additions to increase their policy’s cash value and death benefit over time, helping build lasting value for estate planning and wealth transfer
- Best for: High-income business owners who need substantial coverage and flexible protection
The illustrative cost of RBC term life insurance for a 40-year-old male non-smoker seeking $100,000 in coverage for a 10-year term is approximately around $13.41/month.
The illustrative cost of RBC participating whole life insurance for a 40-year-old male non-smoker seeking $100,000 in coverage is $285.39 per month with a 20-pay option and paid-up additions as the dividend choice.
5. Desjardins
Desjardins is a strong option for self-employed Canadians who want life insurance that can grow alongside their business, with solutions for succession planning, key person protection, and disability income replacement.
- Term insurance plans: Its term insurance portfolio includes Term 10/15/20/25/30 or Term to 65, with fixed premiums and the option to convert to permanent coverage. This can give freelancers and business owners room to adjust their protection as their income, debts, and family obligations evolve
- Whole life insurance: For those looking beyond term insurance, Desjardins offers participating and permanent solutions such as 5-Pay PAR, Estate Enhancer, and Accelerated Growth. Desjardins is one of the very few insurers in Canada that offers a 5-pay limited pay policy
- Business insurability coverage: This optional rider on life insurance policies allows business owners to increase their coverage based on the growth in their business, up to three times the original coverage amount during the first 10 policy years, without new medical underwriting. This is particularly useful when a growing business requires more insurance to fund a shareholder buyout or protect an increasingly valuable company
- SOLO disability income insurance: Designed specifically for self-employed individuals, including sole proprietors, partners, incorporated business owners, and agricultural producers. This provides a separate income protection solution for those who cannot rely on employer-sponsored disability benefits
- Best for: Small businesses looking for bundled coverage
The cost of Desjardins term life insurance for a 40-year-old male non-smoker seeking $100,000 in coverage for a 10-year term is approximately $12.15/month.
The illustrative cost of Desjardins participating whole life insurance for a 40-year-old male non-smoker seeking $100,000 in coverage is $269.73 per month with a 20-pay option and paid-up additions as the dividend choice.
6. BMO Insurance
BMO Insurance offers life insurance options for self-employed Canadians to protect their families, manage financial obligations, and gain additional financial flexibility in the event of a terminal illness.
- Term insurance plan: BMO Insurance offers term life insurance with 10-, 15-, 20-, 25-, and 30-year terms and up to $30 million in coverage for eligible applicants. Its dedicated Business Guaranteed Insurability option can also help business owners increase coverage as their business grows
- Financial hardship life advance: Permanent life insurance policyholders with a life expectancy of five years or less may apply for an advance of up to $250,000, payable over five years. This may help self-employed individuals manage expenses while facing serious health and financial challenges
- Whole life insurance plan: For permanent coverage, BMO’s Estate Protector and Wealth Accelerator whole life plans offer guaranteed cash values and level premiums. These can support long-term estate planning or provide greater access to cash value for self-employed individuals
- Performance bonus: BMO’s non-participating whole life insurance policies offer a Performance Bonus that can help freelancers or other self-employed Canadians build policy value while maintaining permanent life insurance coverage. This can support long-term financial planning and provide a financial legacy for their families
- Best for: Freelancers and sole proprietors who value a bank‑backed insurer
The cost of BMO term life insurance for a 40-year-old male non-smoker seeking $100,000 in coverage for a 10-year term is approximately $11.16/month.
The cost of BMO non-participating whole life insurance for a 40-year-old male non-smoker seeking $100,000 in coverage is $252.63 per month with a 20-pay option and paid-up additions as the dividend choice.
Comparing the best life insurance companies for self-employed in Canada
| Features | Equitable Life | Manulife | Canada Life | RBC | Desjardins | BMO |
| PolicyAdvisor Ratings | 5/5 | 5/5 | 4.5/5 | 4.5/5 | 4.5/5 | 4.5/5 |
| Cost for a 40-year-old male non-smoker($100,000 in coverage for 10-year term) | $10.89/month | $9.47/month | $12.36/month | $13.41/month | $12.15/month | $11.16/month |
| Life insurance options | Term 10, Term 20, Term 30/65, participating whole life | Family Term 10, Term 20, Term 65, Term-Life, participating whole life | My Term and participating whole life | YourTerm and participating whole life | Term 10-30, Term to 65, participating and permanent life insurance | Term 10–30, non-participating whole life |
| Business-owner suitability | Term riders for temporary business debts | Business Value protector rider | Business growth protection rider | High coverage limits for high-earning self-employed | Business insurability coverage and SOLO disability income insurance | Business guaranteed insurability option |
| Coverage options and flexibility | Convertible term plans, permanent coverage, and critical illness rider options | Multiple term structures, conversion to permanent coverage, and additional deposits | Range of term lengths; conversion options and participating whole life plans | 10-40 year terms, high coverage limits, conversion options | Multiple term lengths, conversion to permanent coverage, and business-specific riders | Multiple term lengths, guaranteed cash values under whole life plans, and a performance bonus |
| AM Best Rating | A | A+ | A+ | A | A | A |
Our methodology for ranking the best life companies for self-employed
Our 2026 rankings for the best term life insurance companies or whole life insurance for self-employed individuals in Canada are based on pricing, product features and financial strength. We evaluated the top Canadian insurers to identify the best 6 options for freelancers, sole proprietors, incorporated business owners, high-income business owners, and other self-employed individuals with different financial responsibilities and long-term goals.
1. Pricing (30%)
We compared premiums for a $100,000, 10-year term life insurance policy for a 40-year-old male non-smoker. We considered affordability and how each insurer’s pricing compares with the other companies in our rankings. Lower premiums received higher scores, provided the policy offered suitable coverage.
| Insurer name | Male (non-smoker) |
| Equitable Life | $10.89/month |
| Manulife | $9.47/month |
| Canada Life | $12.36/month |
| RBC | $13.41/month |
| Desjardins | $12.15/month |
| BMO Insurance | $11.16/month |
Term life cost for self-employed Canadians
Term premiums are illustrative monthly costs for a 40-year-old non-smoker male seeking $100,000 of coverage for a 10-year term. Actual premiums vary by age, sex, health, smoking status, product, coverage amount, and underwriting. All premiums listed on Y-azix are in CAD (CA$).
2. Product features and financial strength (70%)
We assessed each insurer on the criteria below and the listed weights:
| Evaluation criteria | What we assessed | Weightage |
| Life insurance options | Availability of term and permanent life insurance, including participating whole life policies, to meet different personal, business, and estate-planning needs | 20% |
| Business-owner suitability | Business-focused features, such as options to increase coverage as a business grows, protection for business debts, and support for business continuity and succession planning | 20% |
| Coverage options and flexibility | Available term lengths, conversion privileges, coverage limits, riders, and options to adapt coverage as income, family responsibilities, and business needs change | 20% |
| AM Best Rating | AM Best Rating to indicate company’s financial strength | 10% |
How we further assessed the ratings:
We assigned each insurer a score out of five for every evaluation criterion based on its available products, features, pricing, and financial strength. We then applied the respective ratings for each feature to come up with the overall rating. The final ratings reflect the combined weighted scores across all five criteria.
Equitable Life and Manulife received 5/5 ratings for their broad product options, flexible coverage, and product features. Canada Life received 4.5/5 for its participating whole life plans and business succession features, while RBC and Desjardins received 4.5/5 for their flexible coverage options and business-owner protection features. BMO also received 4.5/5, reflecting its competitive term pricing, business coverage options, and non-participating plans.
PolicyAdvisor ratings for the best companies for self-employed:
| Features | Pricing (30%) | Life insurance options (20%) | Business-owner suitability (20%) | Coverage options and flexibility (20%) | AM Best Rating (10%) | Final ratings |
| Equitable Life | 5/5 | 5/5 | 4.5/5 | 5/5 | 4.5/5 | 5/5 |
| Manulife | 5/5 | 5/5 | 4.5/5 | 5/5 | 5/5 | 5/5 |
| Canada Life | 4.5/5 | 5/5 | 4.5/5 | 5/5 | 5/5 | 4.5/5 |
| RBC | 4.5/5 | 5/5 | 4.5/5 | 4.5/5 | 4.5/5 | 4.5/5 |
| Desjardins | 4.5/5 | 4/5 | 4.5/5 | 4.5/5 | 4.5/5 | 4.5/5 |
| BMO | 4.5/5 | 4/5 | 4.5/5 | 4.5/5 | 4.5/5 | 4.5/5 |
Ratings are based on PolicyAdvisor’s weighted methodology and illustrative 2026 pricing. Actual premiums, eligibility, and product features vary by applicant and policy. Rankings are for comparison purposes and do not indicate the best or cheapest insurer for every individual. Pricing scores consider the illustrative term and permanent premiums together with minimum available coverage amounts. The score is not based on term premiums alone.
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Why do self-employed people need life insurance?
Life insurance is a crucial financial tool for self-employed Canadians, including freelancers or gig workers. Here are some of the reasons why you should have it:
- No workplace life insurance: Self-employed individuals do not have access to employer-sponsored life insurance, so they need to arrange their own coverage
- Business debts: Life insurance can provide funds to help repay business loans, lines of credit, or other outstanding obligations after the owner’s death
- Lost income: A death benefit can help replace the income the family depends on and cover ongoing household expenses
- Estate liabilities: The proceeds from whole life insurance can provide liquidity to help cover taxes, debts, and other estate-related liabilities without forcing the family to sell assets
- Business continuity: Coverage can help the business manage the financial impact of losing an owner or key person
- Key-person risk: If a business relies on the owner’s expertise, relationships, or leadership, life insurance can help cover the financial disruption caused by their death, including recruitment costs and lost revenue
- Buy-sell agreements: Business partners can use life insurance to fund a buy-sell agreement, allowing surviving owners to buy the deceased owner’s share from their estate and helping the business maintain continuity
Life insurance for self-employed by life stage
Life insurance needs can change as a self-employed person’s income, family responsibilities, debts, and business grow. The type and amount of coverage should reflect both personal financial needs and, where applicable, business obligations.
| Life stage | Life insurance considerations | Life insurance policy to consider |
| 20s: Starting a career or business | Protect income, cover debts, and secure coverage while premiums are generally lower | Term life insurance with lower coverage but longer policy term |
| 30s: Growing income and family | Protect dependants, mortgage payments, childcare costs, business debts, and future income | Term life insurance or laddered term policies |
| 40s and 50s: Established business and financial commitments | Account for higher income, business debts, family obligations, and growing business value | Term life insurance for temporary needs and whole life insurance for lifelong coverage |
| 60s and beyond: Retirement and succession | Focus more on estate planning, business succession, taxes, and leaving an inheritance | Permanent life insurance, such as whole life or universal life |
Life insurance for freelancers vs. incorporated business owners
Both freelancers and incorporated business owners may need life insurance to protect their families and financial commitments.
| Considerations | Freelancers / sole proprietors | Incorporated business owners |
| Primary need | Protect personal income and dependants | Protect personal finances and business interests |
| Policy ownership | Personally owned | Can be personally or corporately owned, depending on the policy’s purpose |
| Key coverage considerations | Income, mortgage, debts, dependants, and business expenses | Income, dependants, corporate debts, shareholders, succession, and estate needs |
| Amount of coverage | Moderate | Higher than freelancers |
| Estate planning | Primarily focused on family and personal assets | May also involve corporate assets, shares, and estate planning |
How much life insurance coverage do self-employed people need?
Self-employed Canadians need life insurance coverage of at least 7-10 times their income. As they lack employer-sponsored coverage, they must take into account both business expenses and personal financial obligations to choose an adequate coverage amount.
You can use the DIME method to estimate your life insurance needs. DIME stands for debts, income, mortgage, and education. The calculation considers your total debts, the income your family would need to replace and for how many years, your outstanding mortgage, and your children’s future education costs.
Let’s understand this with an example.
Suppose a self-employed person has:
- Debts: $50,000
- Annual income: $100,000
- Income replacement period: 10 years
- Mortgage: $400,000
- Children’s education: $100,000
Using the DIME method:
$50,000 + ($100,000 × 10) + $400,000 + $100,000 = $1,550,000
Based on these figures, they would need approximately $1.55 million in life insurance coverage. In case you have existing savings or investments, you can choose a lower coverage amount. You can also use our life insurance calculator to get exact estimates of the premium you need to pay.
How is life insurance taxed for self-employed Canadians?
The tax treatment of life insurance depends on how the policy is owned, who pays the premiums, and why the coverage is being used. Key points for self-employed Canadians include:
- Personal life insurance premiums: Generally, premiums for personally owned life insurance are not tax-deductible, even if you are self-employed
- Death benefit: Life insurance death benefits are tax-free to the beneficiary when paid after the insured person’s death
- Business-owned policies: When a corporation owns a life insurance policy, the tax treatment can differ from a personally owned policy. The corporation generally cannot deduct premiums as a regular business expense if the business benefits from the death benefit
- Corporate death benefit: When a corporation receives the death benefit, the proceeds can generally be credited to the Capital Dividend Account (CDA), allowing eligible amounts to be distributed to shareholders as tax-free capital dividends.
Corporate ownership, shareholder benefits, estate planning, and the CDA can create complex tax consequences. Self-employed business owners should consult a qualified tax professional before structuring or claiming tax treatment for a life insurance policy.
What mistakes should self-employed people avoid when buying life insurance?
Self-employed individuals can face fluctuating income. Here are the mistakes they should avoid when buying life insurance in Canada:
- Not updating beneficiary details: Not reviewing beneficiary designations after marriage, divorce, children, or business changes
- Underestimating business debts: Include business loans, lines of credit, and personal debts when calculating coverage, even if personal and business finances are kept separate
- Ignoring the lack of workplace coverage: Self-employed individuals cannot rely on employer-sponsored life insurance and need to arrange sufficient personal coverage. They might have to choose higher coverage amounts
- Buying only enough coverage for personal needs: Business owners may also need coverage for business continuity, key-person protection, or a buy-sell agreement
- Choosing the wrong policy type: Term insurance may suit temporary income-replacement needs, while permanent insurance may be more appropriate for lifelong coverage or certain estate and business-planning needs
- Overlooking policy laddering: Buying multiple term policies with different durations can provide higher coverage while financial obligations are greatest and reduce coverage as those obligations decline
- Choosing the cheapest policy without comparing features: Premiums are important, but self-employed or freelancers should also compare coverage amounts, term lengths, policy features, exclusions, and insurer underwriting requirements
Why is life insurance more important for self-employed than employees?
Life insurance can be especially important for self-employed Canadians because they do not have access to employer-sponsored life insurance or workplace benefits. They are responsible for arranging their own coverage to protect their family and income. Life insurance for self-employed individuals can help them cover business debts, replace lost income, support business continuity, and provide funds for estate liabilities. For business owners, adequate coverage can therefore protect both their family’s financial security and the future of their business.
Can life insurance protect a business partner or co-owner?
Yes, life insurance can protect business partners or co-owners. Each partner can have life insurance coverage that provides money to the surviving partners if one partner dies. The proceeds can then be used to buy the deceased partner’s share of the business. This can help keep the business with the existing owners and give the deceased partner’s family fair value for their ownership.
Can a corporation be the owner of my life insurance policy?
Yes, a corporation can generally own a life insurance policy. This is commonly referred to as corporate-owned life insurance (COLI). However, corporate ownership has different tax and estate-planning implications than personally owned insurance. The corporation may be the policyholder and beneficiary, and the death benefit may create a credit to the corporation’s Capital Dividend Account (CDA).
Our advisor’s take on the best life insurance for self-employed individuals
At PolicyAdvisor, we recently helped a 35-year-old self-employed consultant who had built a growing business while also supporting a young family. He had a house loan, business loan, and no employer-sponsored life insurance, so he wanted coverage that could protect both his family’s income and his business obligations if he died unexpectedly. We recommended RBC Insurance’s YourTerm to our client.
Client profile:
- Age: 35
- Occupation: Self-employed consultant
- Family: Married with two young children
- Primary concern: Income replacement, mortgage, and business debt
- Coverage goal: $1 million of life insurance
- Additional priority: Coverage that could adapt as the business and family grow
Why we recommended RBC Insurance’s YourTerm:
- Flexible term options: He could choose a term length from 10-40 years that matched his mortgage, business debt, and peak earning years.
- Adequate coverage limits: RBC YourTerm offers coverage for $1 million for eligible applicants, allowing him to insure both personal and business financial obligations
- Conversion option: He can convert term coverage to permanent insurance without new medical evidence, helping preserve coverage if his long-term needs change
- Term laddering strategy: He could combine policies with different term lengths to provide higher coverage while his mortgage, business debt, and income-replacement needs are highest, then reduce coverage as those obligations decline
- Participating whole life option: If his needs later shift toward permanent coverage and cash-value growth, RBC Growth Insurance offers participating whole life insurance with potential dividends. RBC’s 2026 dividend scale interest rate is 6.30%, although dividends will not be guaranteed
How to purchase life insurance for self-employed people in Canada?
With PolicyAdvisor, you can compare quotes from 30+ insurers and work with licensed advisors to find coverage that fits your personal and business needs. Here are the steps you need to follow to get the best whole life insurance or term life insurance:
- Calculate your coverage needs: Consider income replacement, mortgage, personal and business debts, education costs, and business obligations
- Choose your policy type: Compare term life, participating life, and non-participating whole life insurance based on your financial goals
- Compare quotes: Our advisors at PolicyAdvisor help you compare premiums and coverage options from multiple insurers
- Apply for coverage: Complete your application and any required medical underwriting
- Review your policy: Reassess your coverage as your income, business, debts, and family responsibilities change
Schedule a call now with one of our licensed advisors to get started!
Call 1-888-601-9980 to speak to our licensed advisors right away, or book some time with them below.
Frequently asked questions
Do self-employed people need life insurance in Canada?
Yes, self-employed Canadians need life insurance. They do not have employer-sponsored life insurance, so they need to arrange their own coverage. Life insurance can help their beneficiaries replace lost income, cover personal and business debts, and protect the family or business after the insured person dies.
Is term or whole life insurance better for self-employed people?
The answer to whether term or whole life is better for self-employed people depends on their financial obligations. Term insurance can provide cost-effective income replacement and debt protection, while whole life or universal life may be more appropriate for lifelong coverage, estate planning, or certain business needs. So, analyse your coverage and budget and pick the right policy.
Can life insurance cover business debts?
Yes, life insurance can provide funds to help repay outstanding business loans and other obligations after the owner’s death. The appropriate ownership and beneficiary structure will depend on the business and purpose of the coverage.
Can freelancers get life insurance in Canada?
Yes, freelancers and independent contractors can apply for life insurance like other Canadians. Insurers may consider factors such as income, occupation, health, lifestyle, and the amount of coverage requested when assessing their life insurance application.
Can I use life insurance to protect my business partner?
Yes, your life insurance contract can be used to protect your business partner. The policy can provide funds to purchase the deceased partner’s ownership interest and help the business continue operating.
Should self-employed people consider term life insurance laddering?
Yes, self-employed people can consider the term insurance laddering feature. The laddering option can be useful when financial obligations are expected to decline over time. For example, you could combine policies with different terms so that coverage is higher while mortgages, business debts, and income-replacement needs are greatest.
What are the best life insurance companies for self-employed people in Canada?
Some of the top life insurance companies for self-employed Canadians include Canada Life, RBC Insurance, BMO Insurance, Desjardins, Manulife, and Equitable Life. The right insurer depends on your coverage needs, business structure, income, financial obligations, and whether you need term or permanent life insurance.
The best life insurance for self-employed Canadians can protect family income, personal and business debts, and business interests. Top life insurance companies for self-employed include Canada Life, Manulife, RBC Insurance, BMO Insurance, Desjardins, and Equitable Life. Compare term and permanent coverage, costs, and business protection needs to get the right policy.
