Two men at a table having a meeting.

Build a small business benefits package

Be a great boss to yourself!

Wait — I don't work for a corporation!

One of the biggest differences in being self-employed from working for a single employer is the need to create your own benefits package.

Protect yourself and your future

Be a good boss to yourself. Make a plan to build a benefits package that allows you to take care of yourself now and into the future.

Health insurance helps to pay for medical expenses. If you elect for an option with a copay, you'll need to plan to pay a certain amount for every visit you make to the doctor. Another option is coinsurance — it outlines a percentage you'll need to pay after the deductible is met.

Life insurance is a great product that helps protect your business, pays off debts and leaves money to your loved ones. You have both term and permanent options with life insurance. Term insurance is temporary and is generally less expensive. Permanent insurance typically lasts the life of the insured and may build cash value. You could access the cash value that's built for some expensive life events — as long as you make sufficient payments to keep the policy in force.

Retirement planning helps you build for the future. Traditional accounts offer tax breaks up front, but you'll have to pay taxes once you retire. Roth accounts don't have upfront tax breaks, but you'll likely have tax-free withdrawals in retirement.

Disability insurance offers a huge relief by delivering income if you can't work because of a disabling illness or injury. The percentage of income replacement promised to be paid when you start to receive your payouts is called a benefit percentage.

You can refer to the Financial Foundation for Freelancers Worksheet, which summarizes four different insurance benefits for you to build towards.

The information in this article was obtained from various sources not associated with State Farm® (including State Farm Mutual Automobile Insurance Company and its subsidiaries and affiliates). While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. State Farm is not responsible for, and does not endorse or approve, either implicitly or explicitly, the content of any third party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. These suggestions are not a complete list of every loss control measure. State Farm makes no guarantees of results from use of this information.

State Farm Mutual Automobile Insurance Company
State Farm Life Insurance Company (Not licensed in MA, NY or WI)
State Farm Life and Accident Assurance Company (Licensed in NY and WI)
Bloomington, IL

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