Self-Employed Income Protection Premium Estimator (2025)
Estimate the monthly premium and total benefit you'd need to protect your income if illness or injury prevents you from working.
This tool helps self-employed workers estimate the income protection insurance they need and its potential cost to cover earnings during temporary work absences.
Unlike employees, freelancers and small-business owners don't get paid sick leave. If you're injured or ill, income can drop to zero while bills continue.
Recovery Time
6–18 months
Average recovery time for disabling injuries
Claim Cost
$25K-$70K
Average cost of disability claim (U.S.)
Self-employed lack employer disability coverage
Premiums are often tax-deductible for businesses
Insurers consider multiple factors when determining your premium:
Monthly income & benefit level
Higher income = higher premiums
Occupation risk category
Higher risk → higher rate
Waiting period before payout
Shorter wait = higher premium
Benefit duration
Longer coverage = higher premium
Age & health status
Personal risk factors
State regulations & pricing
Regional cost variations
Typical Premium Range
1–3%
of your insured income
| Occupation Type | Monthly Income | Coverage % | Duration | Est. Premium |
|---|---|---|---|---|
| Software Developer | $8,000 | 70% | 12 mo | $85/mo |
| Electrician | $6,000 | 70% | 12 mo | $120/mo |
| Photographer | $5,000 | 60% | 6 mo | $55/mo |
| Consultant | $9,000 | 80% | 24 mo | $140/mo |
Opt for a longer waiting period
60–90 days reduces premiums significantly.
Avoid over-insuring
Match coverage to real expenses.
Bundle with business insurance
Multi-policy discounts available.
Keep emergency fund
3–6 months expenses reduces needed coverage.
Reassess coverage annually
Adjust as income changes.
Case: Self-employed consultant, California
• Monthly income: $9,000
• Expenses: $5,000
• Coverage: 70% for 12 months
• Waiting period: 30 days
Benefit Needed
$75,600
total coverage
Est. Premium
$105/month
approximate cost
Q1: Can self-employed people get income protection?
A: Yes, several insurers offer policies for freelancers and sole proprietors.
Q2: What's the difference between short- and long-term coverage?
A: Short-term covers 3–12 months; long-term can cover up to 5 years or retirement.
Q3: Are premiums tax-deductible?
A: If paid by your business for business income protection, yes (often deductible as a business expense).
Q4: Does this cover business overheads?
A: No, you need Business Overhead Expense (BOE) insurance for that.
Q5: What if I return to work part-time?
A: Some policies offer "partial disability" benefits.
• IRS Tax Guidelines on Business Deductions
• Forbes Advisor - Self-Employed Insurance Guide
• Policygenius - Disability Insurance for Freelancers
• Social Security Administration (SSA) Disability Data
• Council for Disability Awareness
• Insurance Information Institute