What are the life insurance considerations for self-employed Nevadans?

Self-employed Nevadans face unique life insurance considerations compared to employees with employer group benefits. Without an employer plan, all life insurance coverage must be individually purchased—but this also means complete control over policy type, amount, and carrier selection.

Self-employed individuals should consider: income replacement (covering the income your family depends on), business debt coverage (business loans, lines of credit, and equipment financing that survive the business owner), and key person coverage (if you have partners or a business with multiple stakeholders).

Nevada's no-income-tax environment makes self-employment particularly attractive—and the same tax advantages apply to life insurance strategies. Sole proprietors can purchase individual permanent policies and access cash value through tax-advantaged policy loans in retirement, complementing SEP-IRA and Solo 401(k) retirement savings.

For self-employed individuals with taxable income above the Social Security wage base ($168,600 in 2024), the lack of additional Social Security benefits above that threshold means private life insurance and disability income coverage becomes proportionally more important as income replacement.

Agents in our network work frequently with Nevada's large self-employed population—including independent contractors, gig economy workers, and small business owners—to structure comprehensive coverage appropriate for the self-employed lifestyle.