MAM
How Does Term Insurance Benefit Self-Employed Individuals Without Employer Benefits?
When you’re self-employed, you handle everything—your income, your business, and your family’s financial security. There’s no company insurance or fixed salary to rely on. That’s why it’s important to plan ahead.
Term insurance is a great way to make sure that if life takes an unexpected turn, your loved ones won’t be left struggling. It’s a simple, affordable solution that provides peace of mind.
This blog covers the reasons why term insurance is a must for self-employed. We’ll look at how it can offer stability in an unpredictable world.
Benefits of term insurance for self-employed individuals
Besides compensating for the lack of employee perks, these are the other benefits of term insurance for the self-employed:
Provides financial security for your family
If your income supports your household, term insurance ensures your family isn’t left struggling in case of an unexpected event. It helps cover essential expenses like home loans, education and daily costs.
Offers affordable and flexible premiums
Term insurance gives you good coverage at a low cost. You can also pick a payment plan that suits you—monthly, quarterly or yearly.
Ensures business continuity
If you own a business, the payout can help cover operational expenses, clear debts or support succession planning. It ensures your business remains stable even in your absence.
Gives peace of mind
Self-employed individuals have to create their own financial safety net. Term insurance provides reassurance that your dependents won’t face financial hardship.
Provides tax benefits
Premiums paid for term insurance qualify for tax deductions under Section 80C of the Income Tax Act, 1961. Furthermore, any payout to your nominee is tax-free under Section 10(10D).
Covers loans and liabilities
Many self-employed individuals take loans to grow their businesses. Term insurance prevents these debts from becoming a burden on your family. The payout can help cover repayments if something happens to you.
Allows customised coverage
You can adjust your term insurance coverage. Consider your business value, income and financial goals. You can even increase coverage as your responsibilities grow.
Offers extra protection
Riders like critical illness cover, waiver of premium and accidental death benefits offer more benefits to your policy. These keep you financially secure if health problems affect your income.
Tips to choose the right term insurance for self-employed individuals
When you’re self-employed, planning for financial security is entirely up to you. Without employer-provided benefits, it’s important to choose a term insurance plan that can take care of your family’s needs and cover any outstanding loans or business liabilities. This ensures that your loved ones won’t have to face financial difficulties if something happens to you.
Since income is unpredictable, look for policies that offer flexible premium payments or grace periods. The coverage should be able to support personal and business commitments. It’s also a good idea to compare different insurers based on their claim settlement ratio, policy benefits, and premium costs. Additional features like critical illness cover or a waiver of premium can offer extra protection during tough times. Before you finalise a plan, read the policy details carefully to understand the terms and exclusions. If you’re unsure about the right choice, consult a financial advisor.
Last word
Choosing the right term insurance provider is as important as selecting the right coverage. To make an informed decision, check the insurer’s reputation, claim process and additional benefits. A trusted provider keeps your family and business financially secure, no matter what.
Use a term insurance premium calculator to make your search easier. It lets you compare plans based on coverage, cost and flexibility. Checking these details will help you pick a policy that gives the right financial protection.
Brands
YES Bank hands the keys to SBI veteran Vinay Tonse as it bets on a new era
Former SBI managing director appointed as YES Bank’s new MD and CEO
MUMBAI: YES Bank is done rebuilding. Now it wants to grow. The private sector lender has appointed Vinay Muralidhar Tonse as managing director and chief executive officer-designate, with RBI approval secured and a start date of April 6, 2026 confirmed. The three-year term signals the bank’s intent to shift gears from crisis recovery to full-throttle expansion.
Tonse, 60, is no stranger to scale. Most recently managing director at State Bank of India, he oversaw a retail book of roughly $800bn in deposits and advances, one of the largest in the country. Before that, he ran SBI Mutual Fund from August 2020 to December 2022, a stint that saw assets under management surge from Rs 4.32 lakh crore to Rs 7.32 lakh crore across market cycles. Add stints in Singapore and four years leading SBI’s overseas operations in Osaka, and the incoming chief arrives with a genuinely global CV.
His academic grounding is equally solid: a commerce degree from St Joseph’s College of Commerce, Bengaluru, and a master’s in commerce from Bangalore University.
The appointment follows an extensive search and evaluation process by the bank’s Nomination and Remuneration Committee. NRC chairperson Nandita Gurjar said the committee unanimously backed Tonse, citing his leadership track record, governance credentials and ability to drive the bank’s next phase of transformation.
Non-executive chairman Rama Subramaniam Gandhi was unequivocal. “I am certain that Vinay Tonse, with his vast experience as a senior banker, will propel YES Bank to its next phase of growth,” Gandhi said, adding that the bank remains focused on strengthening its retail and corporate banking franchises and expanding its branch network.
Rajeev Kannan, non-executive director and senior executive at Sumitomo Mitsui Banking Corporation, the bank’s largest shareholder, said Tonse’s experience across retail, corporate banking, global markets and asset management positioned him well to lead the lender. SMBC said it looks forward to working with Tonse and the board as YES Bank pursues its ambition of becoming a top-tier private sector lender anchored in strong governance and sustainable growth.
Tonse succeeds Prashant Kumar, who took the helm in March 2020 when YES Bank was in freefall following a severe financial crisis, and spent six years painstakingly stabilising the institution, rebuilding governance and restoring operational scale. Gandhi was generous: “The bank remains indebted to Prashant Kumar, who is responsible for much of what a strong financial powerhouse YES Bank is today.”
Tonse, for his part, struck a purposeful note. “Together with the board and my colleagues, I remain deeply committed to creating long-term value for all our stakeholders,” he said, pledging to build on Kumar’s foundation guided by his personal motto: Make A Difference.
Beyond the balance sheet, Tonse played cricket at college and club level and represented Karnataka in archery at the national championships — sports he credits with teaching him teamwork, situational leadership, discipline and focus. In quieter moments, he reaches for retro Kannada music, classic Hindi songs, and the crooning of Engelbert Humperdinck, Mukesh and Kishore Kumar.
YES Bank has its steady-handed rebuilder in Kumar to thank for survival. Now it has a scale-obsessed growth banker at the wheel. The next chapter starts April 6.
