Financial planning can often be unpredictable for self-employed individuals, marked by variable incomes and the absence of employer-provided benefits like life insurance. In such scenarios, term insurance emerges as a vital tool, offering financial stability and safeguarding your loved ones against unforeseen circumstances.

This article explores the benefits of term insurance for self-employed individuals. It provides insights into why it’s a must-have for long-term financial security and how platforms like Policybazaar can simplify the selection process.

Why Term Insurance is Crucial for Self-Employed Professionals?

Unlike salaried professionals, self-employed individuals often lack access to corporate insurance schemes, making personal life insurance essential. A term insurance policy helps self-employed individuals with:

1. 1. Financial Protection for Dependents: Ensures your family is financially supported in case of your untimely demise.
2. 2. Coverage for Business Liabilities: Helps settle outstanding loans or business debts, preventing financial burdens from falling on your family.
3. 3. Affordable Premiums: Term plans are cost-effective, with premiums significantly lower than traditional insurance products, offering high coverage at a reasonable cost.

Key Benefits of Term Insurance for Self-Employed Individuals

1. 1. Customizable Coverage
   Self-employed professionals can tailor their coverage based on personal and business needs. For example, a 35-year-old non-smoker can secure a ₹1 crore cover for as low as ₹13,500 annually. (Source: Policybazaar.com)
2. 2. Income Replacement
   Some term plans offer income benefits, providing a steady monthly payout to your family to cover expenses and maintain financial stability even in your absence.
3. 3. Riders for Enhanced Protection
   Add-ons like Critical Illness Rider and Accidental Death Benefit Rider can protect against unforeseen medical or accidental costs, ensuring that healthcare expenses or major disruptions don’t deplete savings.
4. 4. Tax Benefits
   Premiums paid for term insurance are tax-deductible under Section 80C of the Income Tax Act, and payouts to beneficiaries are tax-free under Section 10(10D).

Statistics Highlighting the Need for Term Insurance

• – In September 2024, there was a 50% increase in the number of self-employed people buying term insurance compared to the previous year. Out of these purchases, 70% were for insurance plans specifically made for self-employed individuals, according to data from Policybazaar.
• – A key discovery in the rise of term insurance purchases is that most of the new buyers—74%—are millennials, aged between 27 and 38.

Choosing the Right Term Insurance

Self-employed individuals should consider these factors when selecting a term plan:

1. 1. Evaluate Your Liabilities
   Ensure your coverage accounts for personal expenses, business loans, and future obligations like children’s education or mortgage payments.
2. 2. Assess Premium Affordability
   Premium calculators, available on platforms like Policybazaar, allow you to estimate costs based on your age, income, and coverage needs.
3. 3. Opt for Long-Term Coverage
   A longer policy tenure ensures protection throughout critical life stages, offering peace of mind for you and your dependents.
4. 4. Compare Policies Online
   Policybazaar simplifies the process by enabling comparisons across top insurers, helping you identify the most cost-effective and comprehensive term plans.

Policybazaar: Simplifying Term Insurance and Life Insurance for the Self-Employed

Financial security is crucial for self-employed professionals, and Policybazaar provides the perfect solution. With tools like an instant term insurance premium calculator and 24/7 expert support, it streamlines the process of choosing the best term insurance or life insurance plan tailored to individual needs. Policybazaar ensures a smooth, hassle-free experience, helping you compare options, calculate premiums, and select a plan that aligns with your financial goals.

Having empowered over 10 million users to make informed insurance decisions, Policybazaar stands out as a trusted platform for entrepreneurs seeking comprehensive financial protection for themselves and their families.

Secure Your Future: Why Term Insurance is a Must for the Self-Employed

For self-employed individuals, term insurance isn’t just an option; it’s a necessity. It bridges the gap in financial security, protecting against life’s uncertainties while ensuring your family and business remain safeguarded. Start exploring your options today, and let platforms like Policybazaar guide you in securing