Income Protection provides safety net for self-employed
Income Protection provides vital financial cover for the self-employed. By replacing a percentage of your earnings if you are too ill or injured to work, it delivers the financial security needed in the absence of an employer to cover sick-pay and insurance benefits. So if you are self-employed it is worth asking yourself: What would you do if you were too ill to work? How long would your savings last? Could you survive on state benefits?
The figures on long-term absence in the UK show that for the self-employed, opting out of Income Protection is simply not worth the risk. According to one leading provider in the UK, there is currently a 32% risk of a 30-year old non-smoking male being unable to work for 2 months or more. Research from the Office of National Statistics also highlighted that 2 million people in the UK are currently claiming sickness and incapacity benefits.
Fortunately, there are plenty of Income Protection policy options to tailor your cover to suit your circumstances and financial needs. A deferred period for example, will delay the time between being off work and the policy kicking-in. By choosing a longer period, it can bring down the cost of a policy, as can reducing the level of cover and opting for less of your monthly income to be paid.
If you are self-employed, it is down to you to protect yourself against financial detriment. For a small monthly cost, you can make sure that if you are unable to work due to illness or injury, your health becomes priority, not your finances.