Why it matters more
Without workplace benefits, there is no automatic safety net. A personal policy replaces income for your family and can cover business debts or a buy-sell agreement if you have partners.
What to consider
Size the coverage to income replacement, debts, and any business obligations. Self-employed income can vary, so a needs-based calculation is usually more reliable than a simple salary multiple.
Pairing with other coverage
Because there is no group disability or critical illness coverage either, many self-employed people pair life insurance with disability and critical illness insurance to protect income during illness or injury.
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Book my free review →Frequently asked questions
Do self-employed people need life insurance?
If others depend on your income or you have business debts, yes. Without group coverage, a personal policy is often the main protection.
How much coverage should I get?
Base it on income replacement, debts, and any business obligations. A needs-based calculation suits variable self-employed income better than a salary multiple.
Should I add disability or critical illness coverage?
Many self-employed people do, because they also lack group disability and critical illness coverage to protect income during illness or injury.
Can life insurance cover a business partnership?
Yes. It can fund a buy-sell agreement so a surviving partner can buy the deceased partner's share.
This page is for general educational purposes only and does not constitute personalized financial, tax, legal or accounting advice. Figures, limits and coverage ranges are illustrative and change over time - verify current terms before acting. Insurance and registered-account eligibility is subject to underwriting and government rules. Compensation is disclosed in writing before any application is signed. Neelesh Kumar is a Licensed Life & Health Insurance Agent regulated by FSRA - verify at fsrao.ca. © 2026 Wealthready · FinanceWithNeelesh · Kitchener, Ontario.