Insurance Options For The Self Employed

Insurance Options For The Self Employed

Protect Your Family and Your Finances With Essential Cover What would happen if you were suddenly unable to earn an income? If you have income protection in place, you’ll never need to worry. If you are self-employed, do you have a plan in place which would allow you to pay your bills and support your family if you were suddenly unable to earn an income? Illness or an accident can strike at any time and can have a significant impact on your finances. Employees typically have access to various insurance benefits provided by their employer. From life insurance to health insurance and even travel insurance in some cases, you can expect to be well looked after during your employment. But the self-employed are on their own, and should therefore arrange their own income protection.

Do you really need income protection?

Let’s crunch the numbers. If you have regularly been paying NI contributions during your working years, then you would be entitled to some government support if you found yourself out of work. For up to 13 weeks after claiming Employment and Support Allowance, you may be eligible for £57.90 per week if you’re under 25 years old, and £73.10 if you’re over that age. These payments could potentially increase to £111.65 a week after that 13 week period depending on the circumstances that have stopped you from being able to work. Many people don’t feel that they would be able to survive on this amount of money, particularly if they have a mortgage to pay or a family to support. In this case, income protection for contractors and the self-employed would be the right move for you. Income protection could pay out as much as 50-80% of your regular income. You may also want to look at some additional insurance options too.

Medical Insurance

Although you will be entitled to NHS care, private medical cover often provides you with quicker consultation and treatment times which would allow you to return to work quickly.

Life Insurance

If you have a family to support who rely on your income through self-employment, then consider what would happen to your nearest and dearest if you were to die. Essentially, their current lifestyle would need to be paid for from some other means which may be challenging if your partner needs to care for your children or wouldn’t be able to afford to pay the mortgage from their single wage. By taking out life insurance, a lump sum would be paid to your beneficiary which would take care of their financial situation after you have passed.

Critical Illness

Critical illnesses such as cancer, heart attacks or strokes cannot be planned for, but in the event that they happen, critical illness cover will enable you to have some financial security. This insurance policy would pay off substantial bills such as your mortgage at the point of diagnosis. Even if you subsequently make a full recovery, your finances will have been taken care of, allowing you to rehabilitate without any financial stress. If you’re self-employed, then it’s essential that you put plans in place to cover all eventualities. Insurance cover is an affordable way to provide security for the future, so start by comparing some income protection and self-employment insurance quotes today.