If you work for yourself, it can be hard to find the right type of income protection. This is why we have put together this guide to help you understand what’s out there and how it could benefit your business.
Self-employed income protection is a type of insurance that protects your business income in the event that you are unable to work due to illness or injury.
This type of cover can be important for any self-employed person, especially if they have no other form of financial security outside their business. If you are self employed and don’t have any other savings or investments then this can help provide some peace of mind knowing that if something happens to you then there will still be money coming in from another source.
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The Importance of Self-Employed Income Protection
Self-employed people are at greater risk of suffering from mental health problems and being in debt, according to research by the Department of Health.
They are also less likely to have access to sick pay or maternity leave, meaning that if you’re self-employed and fall ill or become pregnant, you may not be able to afford time off work without losing income.
Types of Income Protection Policies for the Self-Employed
The self-employed have a number of options when it comes to income protection. Depending on your needs and requirements, there are various types of policies available for you to choose from.
- Term: This is the most common type of policy for the self-employed. It provides cover for an agreed period (usually 12 months) before it expires and you will have to renew it if needed.
- Guaranteed Renewable: With this type of policy, no matter how many times you renew your policy during its term, there will always be an option to extend or continue with another contract without having any medical checks again until age 65 years old at least! This can be particularly beneficial if someone has experienced health problems over time but wants peace-of-mind knowing they won’t need another medical assessment every year or two years like some other providers require before providing further cover after initial expiry date passes by them without extending/renewing their current contract(s).
When Can You Claim?
When can you claim?
If you are unable to work due to an illness or injury, then you can make a claim. You must also be able to provide proof that this injury or illness was not caused by your work activities.
If your medical condition prevents you from working, but it is unrelated to any injuries sustained at work (or elsewhere), then this may also be covered under the policy. Again, documentation from a doctor will be required in order for us as insurers to assess whether or not we need compensate for lost earnings during this period of time.
In addition, if there has been a death in your immediate family (spouse/partner) we would consider paying out up until one year after such an incident occurs (for example: if someone dies today and their spouse dies tomorrow).
Self-employed income protection can help you if you are unable to work, allowing you to focus on getting better.
If you are self-employed, income protection can help you if you are unable to work. This means that if your business suffers a loss of revenue due to illness or injury, the policy will pay out a monthly sum for up to 24 months.
This can be particularly useful for those who don’t have access to sick leave or other forms of sick pay from their employer because they are self-employed.
Conclusion
So there we have it – a quick overview of what you need to know about self-employed income protection. As you can see, there are many benefits to having this type of policy in place. And with the right provider, it can be easy and affordable too!
