The self-employed should review their income protection

Thomas Oliver’s Hertfordshire Insurance Broker and protection specialist, Ellie Newman, considers why the self-employed should purchase income protection.

Ellie Newman, Insurance Broker and protection specialist in Goff’s Oak & Cheshunt said:

 ‘Many of my articles consider income protection because income is critical to maintaining our lifestyle. When my clients require protection advice I always recommend the first insurance they consider is one that protects their income. For the self-employed this is particularly important. According to Terry Gangcuangco, Insurance Business UK, 42% of self-employed consumers incorrectly assume that they are not eligible for income protection. This is a staggering statistic and partly explains why only 4% of the self-employed community purchase income protection compared to the national average of 11%. For this reason I recommend anyone who is self-employed seeks protection advice. There are now more options and solutions available, and just because you are self-employed does not necessarily mean you will be disadvantaged.’

Ellie Newman, Insurance Broker and protection specialist in Goff’s Oak & Cheshunt continued:

‘Income protection is so important for the self-employed because unfortunately, unlike the employed they are not entitled to employer benefits. As a result if a self-employed person is out of work due to illness or injury, they would have to rely on their own savings. According to Gangcuangco 33% of self-employed individuals could not survive more than 3 months without an income. These statistics are alarming but come as no surprise. Remember if your self-employed income is the main income for your partner and family, it is not only you that suffers if you do not have adequate protection in place. As a self-employed person I know it can be difficult as despite the tax advantages you do have to pay for everything yourself. However, the point of being self-employed is to be self-financing and this can’t be achieved if you’re not covered in a worst case scenario.  If you want to arrange a meeting to discuss income protection please contact me on 01707 872000. Thomas Oliver offer a free initial consultation.     

In summary it is important for both the employed and self-employed to review their income protection cover, however it is more pressing for the self-employed as they are not entitled to employer benefits. As a self-employed person it is easy to overlook income protection but just because there is no employer paying for your flexible benefits doesn’t mean you shouldn’t review it.