Unlike many employed individuals, the self employed individual does not receive any income if unable to work due to accident, sickness or disability. This blog post highlights the necessity of income protection for self employed.
If you are self employed or are employed by a firm that you own, it is worth having an income protection policy, also known as permanant health insurance. This will ensure that if you are unable to work due to accident, sickness or disability a set amount of monthly income will be paid to you after a selected deferred period. The deferred period will generally be 4, 13 or 26 weeks. During this deferred period you will not receive the income if you should claim. The longer the deferred period the lower the monthly insurance cost.
Generally you are only able to claim for 60% of your annual income, however if you are unable to work due to long term illness, then thie policy will continue to pay while you are unable to work to your selected retirement age.
It is our advice that employed and self employed individuals should have income protection, if it is affordable.
If you would like more information on income protection, please do make contact.
Income Protection is not necessarily for everyone, but an income protection for the self employed is worth considering.
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