As a self-employed person you do not have an employer paying you if you’re sick or have an accident and are unable to work and if you have a family you don’t have the death in service benefits that came with employment.
This does not mean that you have to go without these plans leaving yourself, your family and your business in a potentially vulnerable financial position.
The plans available can take into account; your employment position, ability to prove income, and financial needs.
Many self-employed people therefore take out income protection insurance and critical illness insurance in case they get too sick or injured to work, or get a serious illness. Consideration should also be given to private health insurance to get you back to work faster. Life insurance is also common for people who have dependents, such as a partner or children.
For a self-employed person or sole trader, Income Protection is potentially one of the most vital insurances you could have as you may only be eligible for the state benefit Employment and Support Allowance (ESA).
Which option is best for you?
Roxburgh Financial Management provides specialist advice to help you choose from the many Protection products available. For example, at no extra cost it is possible to include cover for your children and many companies now offer cover which will pay out in all events without any exclusions.
Our advisers will help you choose the best option for you and your family at an affordable rate.
Six reasons to use us
- We do not charge for our insurance advice, we are paid commission by the product provider
- We will explain the good, the bad, and the ugly
- We will ask the right questions
- We do all the work, right through to completing the application form
- We are independent and can access the full range of insurance providers
- We are regulated and authorised by the FCA
Types of Self Employed Insurance
Taking out the right policy means Income Protection insurance will provide you with an income should you get injured or become sick and unable to work.
As an example, if you are 35, a non-smoker and in good health, then a premium of around £13 per month would provide you a monthly income of £1,000 for up to 1 year. For a monthly premium of around £16 you could extend the period so it pays out for up to 2 years and for around £25 the plan will pay out up to 33 years (the number of years to state retirement for a 35 year old). These figures are based on plans paying after being off for 4 weeks or more BUT plans do offer cover after being off 1 week, or even 1 day.
For the self employed, getting the right Income Protection plan is vital because of the way providers will asses you in the event of a claim.
The maximum level of cover available depends on your income; net profit for the self employed, with proof of this in the form of accounts usually needed if you make a claim. Typically the plans on offer cover between 50% and 65% of this figures, but this can be up to 70% for some. For those where the proof of income is difficult as in the case of new start ups, our specialists will discuss with you those plans that do not require income proof in the event of a claim.
Click here for more details on Income Protection
Life insurance is a simple and cheap way to help protect you and your family from the financial impact of a premature death through by paying them a lump sum amount.
When set-up correctly in a Trust a lump sum payment is paid out tax-free on a death.
Click here for more details on Life Insurance.
Critical Illness Insurance
Critical Illness Insurance provides a tax free lump sum payment on diagnosis of a ‘qualifying’ serious illness.
Critical illness insurance is a complex product with exclusions and pay-outs varying greatly from insurer to insurer. Typically all insurers cover illnesses such as cancer, heart attack, stroke, Alzheimer’s and multiple sclerosis. A comprehensive policy can cover you for over 170 ‘qualifying’ illnesses, a typical one less than 50 so it pays to talk to an adviser to ensure you get the best policy for your budget and health concerns.
As an example, if you are 30, a non-smoker and in good health, then a premium of around £50 per month would provide you a lump sum amount of £175,000 upon your premature death or diagnosis of a serious illness before the state retirement age of 68.
Click here for more details on Critical Illness Insurance.
Private Health Insurance
If you become ill or have an injury then Private Health Insurance, also known as Private Medical Insurance, offers peace of mind that you can get medical assistance quickly, so your life or work needn’t grind to a halt.
It is designed to ensure that if anything were to go wrong with you or your family’s health you have access to some of the best private healthcare available in the UK, covering the costs of surgery, consultancy fees, accommodation and nursing at a private hospital.
Amongst other things, it offers cover for early diagnosis and treatment, paying for anything from physiotherapy on a sprained ankle to seeing a consultant about chronic back pain, from diagnostic tests to major heart surgery, or even the latest in chemotherapy treatments.
Click here for more details on Private Health Insurance.
Roxburgh Financial Management was set up to provide specialist help to people unsure how to go about choosing from the many Protection products available.
Our specialists will help you to navigate all the options to find the cover that is right for you and your family at an affordable rate.