No Employer Benefits? You’re the One Who Has to Plan Ahead

Life Insurance for Self-Employed Contractors – Protecting Your Family

When you’re self-employed, no one’s handing you a benefits package or group life insurance. That means if something unexpected happens, there’s no payout coming unless you’ve made a plan. Life insurance for self-employed contractors is a simple way to make sure your family isn’t left scrambling if you’re not there to provide for them. It can replace lost income, pay off debts, and give your loved ones time to regroup—without worrying about money.

Why Personal Life Insurance Matters for Contractors

A self-employed contractor often is the business. If you pass away, your family not only loses your income, but they may also face business debts, unfinished contracts, or client issues. There’s no HR department to fall back on—just you. Life insurance gives your family a financial cushion: mortgage payments, groceries, tuition, and more don’t stop just because you’re gone.



Whether you’re a sole proprietor in Tempe, an independent electrician in Glendale, or a framing contractor working jobs across the East Valley, protecting your income is critical—because no one else will do it for you.

Don’t Let Personal or Business Debts Follow Your Family

Contractors often sign personally on truck loans, equipment leases, or credit lines. If you die unexpectedly, those debts could fall on your spouse or estate. A life policy can wipe out those balances, so your family doesn’t lose their home, vehicles, or retirement savings trying to cover what’s left behind.

Choosing Term vs Permanent Life Insurance

For most working contractors, a term life policy is the most affordable way to get solid coverage during your prime earning years. Common term lengths are 10, 20, or 30 years—just long enough to match your mortgage, raise your kids, or reach retirement.

Permanent policies like whole or universal life stay in force for life and may build cash value. They’re more expensive, but can make sense if you’re looking for long-term estate planning or an asset you can borrow against. We’ll help you compare your options based on your goals, age, and budget.

How Much Life Insurance Should You Carry?

Here’s a basic starting point:

• Multiply your annual income by 5 to 10
  
• Add the total of all personal and business debts
  
• Factor in big-ticket goals (like paying off the house or funding college)

Even if you can’t afford the full amount right now, some coverage is better than none. You can start small and add more later as your income grows.

Remember, You Also Don’t Have Health Benefits

This isn’t about health insurance, but it’s a good reminder: when you’re self-employed, you have to build your own safety net. Life insurance is a critical part of that. Without it, your family may be forced to rely on GoFundMe, distant relatives, or hard financial choices.

Fast Coverage Without a Doctor Visit

If you’re relatively healthy, there are no-medical-exam life insurance options that are fast and affordable. Some can be approved within a few days. Whether you want a simple 20-year term or a lifetime policy with cash value, JP Insurance Group can walk you through it without pressure.

Life Insurance Helps Keep the Business Running—or Gracefully Exit

If your family wants to keep your business running, the life insurance benefit can be used to hire someone to replace you or pay expenses during the transition. If they’d rather sell or close the business, the insurance gives them time and money to do that without panic. Either way, it’s about giving them options.

Built-in Tax & Estate Planning Benefits

Life insurance payouts are usually income-tax-free for your beneficiaries and don’t go through probate when beneficiaries are properly named. That means the money gets to your family faster, without legal red tape.

We Make This Simple—Because It Should Be

We know contractors don’t have time for sales fluff. We’ll help you figure out how much coverage you actually need, what you can afford, and how to apply. You don’t need to be perfect to get approved. You just need to start.