10 Essential Life Insurance Strategies for Self-Employed Professionals
For self-employed professionals and small business owners, life insurance isn't just a safety net—it's a critical component of financial survival. Without employer-sponsored benefits, these individuals must act as their own risk managers, ensuring both personal and business continuity through comprehensive coverage.
The DIME method provides a structured approach to income replacement, while term life insurance offers budget-friendly protection for defined obligations. Universal life policies deliver permanent coverage with cash FLOW flexibility, and riders for disability or critical illness safeguard against living impairments.
Business-specific strategies include key person coverage to protect revenue streams, debt liquidation through policy benefits, and structured buy-sell agreements for seamless ownership transitions. The cross-purchase arrangement emerges as the tax-optimal solution for business succession planning.
