As a 1099 worker you likely get no workers comp and no work plan. Your family starts at $0. A policy you own pays no matter where or how you die.
What your family may get
| Source | What it pays for self employed workers |
|---|---|
| Workers comp | Usually no. As a 1099 worker you are not an employee, so you carry your own workers comp, if any. |
| Work life insurance | You don't get a work plan. Any life insurance is the one you buy. |
| Social Security | A one time $255 payment, plus monthly checks for kids and some spouses if you worked long enough. |
Workers comp death benefits differ by state. Texas, for example, pays death benefits to help replace some lost pay and burial benefits for some funeral costs. Source: Texas Department of Insurance
How to close the gap
- Buy a term policy you own. It stays with you if you change jobs.
- Pick an amount close to 10 years of pay plus your mortgage.
- Tell the insurer your real job. Hiding it can lead to a denied claim.
- Ask an agent which companies treat self employed workers fairly.
Common questions
What happens if a self employed worker dies on the job?
Usually no. As a 1099 worker you are not an employee, so you carry your own workers comp, if any. You don't get a work plan. Any life insurance is the one you buy.
Does workers comp pay life insurance?
No. Workers comp is not life insurance. It may pay part of your lost pay and some funeral costs if a work injury kills you. It does not pay for deaths off the job.
Does my own life insurance pay if I die at work?
Yes. A regular life policy pays whether you die at work, at home or on vacation, as long as you told the truth on the application and the policy is in force.
Will my job make life insurance cost more?
It might. Some insurers add a charge for risky jobs. Others don't. A licensed agent can compare companies that are fair to self employed workers.
Sources
- 59 percent of private industry workers had access to life insurance through work (March 2026)
- Social Security pays a one time $255 death payment to a surviving spouse or child who qualifies
- Social Security: Survivors benefits
- Texas Department of Insurance: Workers comp income and death benefits
- Independent contractors are responsible for their own workers comp coverage
