Protecting a self-employed income
You’ve set up your business and work hard but what would you do if you were suddenly unable to work? Income protection insurance is ideal and isn’t as expensive as you might think.
In 2017 research by LV revealed 28% of self-employed people worry about being ill or having an accident and yet only 4% have any form of income insurance. Many believe, falsely, that as a sole trader, freelancer or small business owner, they’re excluded from income protection products. More worryingly, 33% said they couldn’t survive more than 3 months without their current income.
Income protection insurance is in fact ideal for the self-employed and isn’t as expensive as many might think. Options within income protection policies, such as opting for a deferral period, can lower costs even further.
As well as a lack of knowledge, scare stories from the days of mis sold PPI insurance can also be attributed to the low take up rates amongst the self-employed. When you’ve worked hard to set up by yourself, every penny counts and handing over precious income when you’re feeling perfectly well, can feel like an over protective indulgence. However, income protection insurance will:
- Replace part of your income should you be unable to work due to illness, accident or injury. It may cover you for stress-related illness, mental health or a physical illness or injury. Most illnesses are covered and the policy may include short term as well as long term incapacity.
- Pay out until you can return to work, until you retire, should you pass away or until the policy end date
- You can select to start the policy payments after a set amount of time off work in order to lower the premiums. This is ideal if you have set aside a certain amount of money for short term illness or unexpected events but wouldn’t be able to sustain it long-term.
- There isn’t a limit on claims
Should you wish to discuss your options, please get in contact with us.