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Why does a self-employed person want life insurance?


Life insurance guarantees financial security for our beneficiaries if we are missing or ours, if something serious happens to us. But this protection is even more important in the case of the self-employed, who do not have the security of employed workers. So, if you are wondering why a self-employed person wants life insurance, keep reading. The advantages of this policy for this exclusive group are numerous.

The self-employed, a worker at risk

The self-employed have been the workers most affected by the pandemic. The Association of Self-Employed Workers (ATA) explains that Spain lost 1,204 self-employed in 2022 and only five communities grew in affiliation, the worst data since 2013.

Few could resist the closure of their businesses and the null or very low billing. But even so, job insecurity and the lack of opportunities for both young people and those over 45 years of age make opening your own business the only way to get ahead.

But this affiliation to Social Security does not have the same economic rights as employees. In other words, a self-employed person charges much less in case of sick leave or sick leave, and when retirement arrives, even paying the maximum Social Security affiliation fee.

According to the Federation of Organizations of Professionals, Self-Employed and Entrepreneurs (OPA), this is the most vulnerable professional group: If a self-employed worker suffers a permanent disability, they earn on average almost 300 euros less than a professional employed by others.

We have often heard that the self-employed never get sick, simply because sometimes it is a luxury that cannot be afforded and that forces you to continue working, including in case of serious illness or temporary professional disability. Not only because what they receive from the labor mutual does not cover their basic expenses, but because of the fear that their business will fail if they are not in charge and they have to close it.


Unfortunately, there are some cases were continuing to work is not an option. And if you suffer from a disability? What if this is due to a common but serious illness and Social Security does not pay for it? The autonomous is then totally unprotected and yet continue to bear the costs of their business and have to support their employees.

Hence, life insurance is even more necessary for these workers and even better if it covers serious illnesses or temporary disability due to incapacity for work.

The essential insurance for a self-employed person

1.- Life insurance

Self-employed workers have life insurance tailored to their personal and professional profile that will protect their payments if they become disabled or die. With this, you will have the economic peace of mind of having covered your pending expenses, credits requested for your business or your own death expenses.

2.- Sick leave insurance

This additional coverage allows the self-employed worker to collect each day of his leave until he is discharged, thus covering his disadvantage in this regard compared to employed workers.

3.- Life insurance with total or professional disability or permanent disability

Insurance compensation is based on the disabilities stipulated by the National Institute of Social Security (INSS), linked to the degree of recognized disability.


In this way, it is also possible to obtain life insurance compensation in the event of an accident or illness that no longer allows you to:

  • Work in your usual profession (total incapacity for the usual profession).
  • Work in any profession or trade (absolute permanent disability).

As of today, the INSS is recognizing more professional disabilities than absolute ones, which implies lower pensions. And even lower in the case of the self-employed.

Hence, more and more people take out life insurance with professional work disability, in order to compensate for the loss of purchasing power that this recognition usually entails.

you can choose this Complementary coverage to life insurance:

  • Insurance for serious illnesses. The holder of this policy will receive compensation to help cover the large expenses that he will have to face if he suffers a serious illness. The diseases included are specified in the coverage, and are normally some types of cancer and heart disease.

Expanding coverage with this option means a small increase in the life insurance policy and nowadays it seems essential. You can calculate its price in our insurance calculator. In it you will see very clearly the different prices, services and coverage, to be able to decide which is the one that interests you the most. You decide if you want to choose your insurance for the amount of the fee you want to pay per month or for the money to be received at maturity.



4.- Private medical insurance

Although it is not life insurance, it is an essential product for the self-employed worker. Hence, it is discussed in this article. Private medical insurance allows you to have the best care for any health problem. It also has a very affordable price during the worker’s working life and offers general medicine, specialties, interventions, hospitalizations and treatments, without a maximum renewal age and with the option of maintaining it whenever you want.

Tax advantages for the self-employed

Life insurance, in addition to becoming a good savings option, also allows this group of workers to deduct up to a maximum of €500 from the premiums paid for the policy for death, permanent disability and total disability coverage.

The deduction of this life insurance for professionals will be applied in the income statement in the form of a reduction on the tax base, a not insignificant amount.

In short, there are many guarantees that can be contracted associated with the main life insurance and that are essential for a self-employed person. Enter this complete life policy price comparator and see which is your best option.