Skip navigation Find a branch Search Help and support Log in Menu Home Search Login Home Find a branch Help and support Posting Back Posting We offer a range of postal services to send, collect and return items, including regular sender services. All parcels and letters Branch postage services Track an item Customs forms Online services Buy postage online Drop & Go Branch services Royal Mail UK services Royal Mail International services DPD services Evri services Collections Drop-off and returns Branch postage services Track an item Customs forms Close Banking and bills Back Banking and bills We provide a range essential financial services, from savings, borrowing to money transfers. All banking and bills services Managing your money Banking and personal finance Banking Hubs Credit card Everyday banking Travel Back Travel Plan your getaway with travel essentials including travel money, insurance and handy travel extras. All travel services Travel and adventure Travel extras Travel insurance Travel money Travel money card Travel eSim cards Travel and adventure Close Insurance Back Insurance Protect what’s most important to you from your mobile phone to the future of your family. All insurance services Protect what matters Car insurance Home insurance Life insurance Over 50s life insurance Pet insurance Travel insurance Van insurance Gadget insurance Protect what matters Close Identity Back Identity Apply for passports, licences and permits, get documents certified, your identity verified. All identity services Branch services DBS checks Document certification Driving licence renewals In-branch ID verification Passports Provisional driving licences SIA licence Vehicle tax GOV.UK One Login Digital services EasyID PASS card Identity services for business Close More Back More We offer a range of other useful products and services. All our services National Lottery Gift cards Close Close Search Search What are you looking for? Search Popular searches Track a parcel Gift cards Travel money Travel insurance Drop and Go Passports Close Log into your account Banking Credit cards International money transfer ISAs Junior ISAs Mortgages Savings Travel and Insurance Car and van insurance Gadget insurance Home insurance Pet insurance Travel insurance Travel Money Card Posting Drop & Go Parcels Online Home Life cover Life Cover Guides and Articles Life insurance for self-employed Life insurance for self-employed Working for yourself can come with financial challenges. That's why it's worth considering life insurance when you are self employed. Last updated: 9/12/2024 | By Gulay Yildirim Being self-employed has a number of great benefits that make it attractive to many people: you can go on holiday when you want, you can control your budgets, you can work in a space that suits you and you can continue to develop a professional skill every day. To go along with the freedom and control, there are a number of drawbacks. As well as generating your own work, you also have to ensure that you’ve paid your own taxes and kept on top of a vast amount of organisation. And you can miss out on some of the perks that employment can bring, such as death-in-service benefit. Life insurance for self-employed people can bring a sense of stability to a career that isn’t always predictable. Because of the lack of employee benefits, life insurance is arguably more important for self-employed people than for those in full-time employment. Should I get life insurance if I'm self-employed? Working for an employer has a raft of benefits that are unavailable for the self-employed. One of these is ‘death-in-service' benefit, where employers pay a multiple of your salary (usually two to four times) to your dependents should you die while employed. Many employers also provide things that would cost you if you were self-employed, such as health insurance, sick leave, maternity leave and so on. Self-employment comes with the responsibility to provide all of these things for yourself. As you may also be providing for your family at the same time as working for yourself, the financial worries can be multiplied. Life insurance for self-employed people can provide a safety net for those you love should you die. Unlike employment, where your family could expect some form of payout from your employer, self-employment relies on your ability to create savings to provide for your family. If you’re interested in life insurance, then consider a life cover policy from the Post Office. Life insurance How does life insurance for self-employed people work? Life insurance policies work the same way whether you’re employed or self-employed, however your reasons for buying a policy might differ. Term life insurance gives a payout if you die within the life (or ‘term’) of the policy. The length of this term will be pre-arranged by you when you take out the cover, as will the payout and your monthly premiums: There are a number of different term life products available that have different uses. Decreasing term life insurance If you are paying a mortgage, then decreasing term life cover could be the most helpful. This type of policy often has the lowest premiums of the three most common term-life options (for the same amount of cover) and is designed specifically to cover gradual repayment debts. The rate at which the payout amount on a decreasing term insurance goes down is designed to be broadly the same as how the outstanding balance of a capital and repayment mortgage decreases. Therefore, should you die during the term of this policy, your mortgage obligations should not fall to your partner or children. Most providers have a cap on mortgage interest rates, meaning that mortgages with interest rates over that cap may not be fully-covered by a payout. Level and increasing term life insurance Level term and increasing term insurance policies offer set payouts which are decided when you take out your policy. The difference between the two is that with increasing policies, the amount of the payout goes up each year (to help mitigate the effect of inflation). However, increasing term policy premiums also increase annually, so this is something to factor in. Whereas they remain the same throughout your policy with level and decreasing cover. Other kinds of insurance for self-employed people Life insurance for self-employed people is an important protection for your family should anything happen to you. As well as the worst-case scenario of your death, there are other situations that might warrant life insurance or other types of insurance. Critical illness cover Critical illness cover is an add-on policy that you can only include at the time you take out your life insurance policy with the Post Office. While it is hopeful that it will never be needed, it does offer protection in the event that you fall ill with conditions outlined in the policy document. In this unfortunate situation, the critical illness cover will pay an additional sum, to help you manage if you are unable to work. This is a particularly important type of life insurance for the self-employed, as there isn’t the same kind of sick pay that one might receive from an employer. Home insurance Many self-employed people have a home office, practice or workshop. Whether your actual work requires you to travel to other locations and you complete your bureaucratic work at home or you have a large-scale workshop attached to your house, the damage can be enormous if your home were to suffer damage. It’s not the case that your home business will automatically be covered on your home insurance. Talk to a provider so that you can be sure you are getting appropriate cover. Getting the right cover for your home and contents is a necessary precaution if you work from home or have a home-based business address. As well as offering your business protection, it also brings peace of mind for yourself and your family. Use our life insurance and over 50 life insurance calculators to find out what cover you could get for your family. See our range of life cover to help you protect what matters most Life cover options Our life cover products Life Insurance Give your loved ones peace of mind with a life policy. Discover Life Insurance Over 50s Life Cover Help loved ones with the cost of your funeral and other small expenses with an over 50s policy. Discover Over 50s Life Cover This might interest you Death in service Life insurance for mums Benefits of life insurance Protect your family Life shouldn't stop for your loved ones if the unexpected happens to you. Let's make sure they'll be financially secure if the worst happens. Life insurance vs life assurance What’s the difference between life insurance and life assurance? We can help with that. What are the benefits of life insurance? We insure our cars against theft and damage, and our homes in case anything goes wrong. But not as many people insure the most valuable thing of all: their lives. Family life insurance: protecting your loved ones Your family is unique. Protecting them from life’s uncertainties is important. Life insurance offers a way to provide financial security for your loved ones if something ... Joint vs single life insurance policies for couples: what’s best for you? Choosing the right life insurance policy as a couple can be challenging. Should you apply for one joint policy or take out separate single policies instead? Understanding mortgage life insurance If you want to leave your loved ones financial protection for your home, even if you’re not there to help pay the mortgage, you may want to take out mortgage life ... 6 reasons why you need life insurance It seems there are certain events in people’s life that prompt them to buy life insurance. The nation's relationship with life insurance For many people, life insurance is an extremely important financial product - but how many of us have it, and what do consumers actually know about this type of cover? What to expect from life insurance Our guide takes you through what to expect from life insurance, from the application right the way through to the payout. If you think it’s a product that could help ... What is life insurance? Life insurance can offer your loved ones peace of mind and financial security if you pass away or become critically ill. Life insurance and critical illness cover at 50: Protecting your future while you enjoy new ... Turning 50 is a great time to try new things. The right life cover can help you enjoy travel, hobbies and big life changes without worry. Death in service vs life insurance Death in service cover is a useful employee benefit but relying on it alone could put your family at risk financially. Find out how it compares to life insurance and why ...