Self-employment and income protection – what you need to know

12 June 2022

According to analysis of O­ffice for National Statistics (ONS) data1, a third of working-age adults now suffer from a long-term illness. The number of adults reporting a long-term condition rose by 1.2 million during the two years of the pandemic.

Long-term ill health can make it very difficult for people to work, with a knock-on impact on their finances. This is particularly true of self-employed people; unable to claim sick pay from an employer or the state, their inability to work could have significant financial repercussions.

Increase your financial resilience

Purchasing an income protection policy could be a cost-effective way of protecting yourself against financial shocks. This type of protection policy is designed to pay out a proportion of your income, tax-free, to help you cover essential costs such as bills, your rent or mortgage, and other living costs. Some insurance providers also include additional benefits in their policies, such as access to specialist clinicians and rehabilitation experts, to help speed up your recovery.

Ask yourself this…

If you’re unsure about whether or not you need income protection insurance, ask yourself this:

  • Could I afford to continue paying my essential outgoings if my income stopped?
  • Do I have savings to help me out if I was unable to work? If so, how long would these last?
  • Could I keep my business afloat if I was too ill to work?
  • Could I still look after my loved ones and dependants if I wasn’t working?

If the answers to any of these questions is ‘no’ you’d likely benefit from income protection. We can help you assess the options available and give you valuable peace of mind.

🚨 Data accurate as of the date of publication – 12.06.2022.

🚨 The above material is for informational purposes only and does not constitute a sales offer or financial advice. Before taking out any insurance, credit agreement or other financial product, you should obtain individual advice on your requirements and the general terms of the contract.

Quilter Financial Planning – Essentially Mortgages Q2 2022

1Observer, 2022

4.8/5 - (22 votes)

Do you need professional advice or a no obligation quote?

Ask us for a quote


Podatek od zysków kapitałowych Navigating Capital Gains Tax – need to knows
21 June 2024
Capital Gains Tax (CGT), the levy on profits from the sale of assets such as...
First Time Buyers First-time buyers overlooked?
20 June 2024
The Spring Budget came as a disappointment for anyone looking to get a foot on...
Equity realise Equity release trends
19 June 2024
Statistics from the Equity Release Council highlight the trends seen in the market last year...
Insurance quote