Life Insurance for Self-Employed in New Zealand

Protect your business and family with tailored coverage solutions

23%
Of NZ workforce is self-employed
47%
Of business owners underinsured
3-6 months
Time for business to fail without owner
2-3 years
Income history typically required

Why Self-Employed Need Comprehensive Life Insurance

Business Income Dependency

Your family's income stops immediately if something happens to you. Unlike employees, there's no sick pay or continued salary.

Business Loan Obligations

Business loans, equipment financing, and commercial mortgages don't disappear. Your estate or family could be liable.

Employee Dependencies

If you employ others, they depend on your business for their livelihoods. Proper coverage can fund transition periods.

Business Wind-Up Costs

Closing a business involves legal fees, final tax obligations, lease cancellations, and employee entitlements.

Coverage by Business Type

Professional Services

Consultants, lawyers, architects, accountants

Key Considerations

Stable income patterns, professional indemnity coverage, succession planning for client relationships

$300,000 - $1,500,000
Typical coverage range

Trades & Construction

Builders, plumbers, electricians, carpenters

Key Considerations

Higher risk occupation ratings, potential for disability, business equipment protection

$200,000 - $800,000
Typical coverage range

Retail & Hospitality

Restaurant owners, shop owners, tourism operators

Key Considerations

Variable seasonal income, business loan coverage, key person protection

$250,000 - $1,000,000
Typical coverage range

Creative & Digital

Designers, photographers, developers, writers

Key Considerations

Irregular project income, equipment insurance, intellectual property protection

$150,000 - $600,000
Typical coverage range

Agriculture & Primary Industries

Farmers, fishers, foresters, contractors

Key Considerations

Asset-rich but cash-poor, seasonal income, succession planning for family operations

$400,000 - $2,000,000+
Typical coverage range

Self-Employed Coverage Calculator

Personal Protection

Family income replacement5-10x annual earnings
Mortgage & personal debts$200,000 - $800,000
Children's education$50,000 - $200,000 per child
Final expenses$25,000 - $50,000

Business Protection

Business loan repaymentOutstanding loan balance
Key person coverage2-5x key person's contribution
Buy-sell agreement fundingBusiness valuation amount
Business wind-up costs$25,000 - $100,000

Quick Estimate for Self-Employed

$500K - $2M

Typical range combining personal and business protection needs

Get Personalized Quote

What Documents You'll Need

Income Verification

  • 2-3 years of tax returns (IR3)
  • Business bank statements (6-12 months)
  • Profit & loss statements
  • Accountant's letter confirming income

Business Information

  • Business registration documents
  • Company/partnership structure details
  • Description of business activities
  • Business loan agreements (if applicable)

Pro Tip

Organize your documents before applying. Having everything ready can speed up the underwriting process by weeks and shows insurers you're a well-organized business owner.

Key Person vs Personal Life Insurance

Personal Life Insurance

Purpose:

Protects your family's financial future if you die

Beneficiary:

Your spouse, children, or chosen beneficiaries

Coverage Amount:

Based on family income needs and debts

Tax Treatment:

Premiums not deductible, payouts generally tax-free

$300K - $1.5M typical

Key Person Insurance

Purpose:

Protects the business from financial loss if you die

Beneficiary:

Your business entity

Coverage Amount:

Based on your economic value to the business

Tax Treatment:

Premiums may be deductible, payouts may be taxable

2-5x annual profit typical

Do You Need Both?

Most self-employed people benefit from having both types of coverage, as they serve different purposes and protect different stakeholders.

Tips for Self-Employed Life Insurance Applications

Show Income Stability

Demonstrate consistent or growing income over time. If you had a bad year, be prepared to explain why and show it was an exception.

Work with a Broker

Brokers know which insurers are most self-employed friendly and can help present your application in the best light.

Apply During Good Years

If possible, apply when you've had 1-2 strong income years. This gives you the best chance of qualifying for higher coverage amounts.

Consider Disability Income

Self-employed people are especially vulnerable to disability. Consider income protection insurance alongside life insurance.

Be Honest About Risks

Accurately describe your work activities and any occupational risks. Hiding risks can void your policy when you need it most.

Review Annually

As your business grows, review your coverage needs annually. You may qualify for more coverage or better rates as your income increases.

Frequently Asked Questions

Protect Your Business and Family Today

Get personalized life insurance quotes designed for business owners in New Zealand