More and more people are choosing self-employment. In fact, according to the Office for National Statistics, over four million people in the UK now work for themselves.*
The appeal is easy to see, being your own boss, setting your own hours, choosing who you work with, and often working from anywhere. But with that freedom comes a challenge: financial security.
When you’re employed by someone else, you often have the safety net of a regular income, sick pay, and notice periods. For the self-employed, there’s usually no such cushion. If you can’t work due to illness or injury, it could mean no income at all. And for many, that could quickly lead to financial strain.
Why income protection matters
If you’re self-employed, your income might come from different sources, perhaps a mix of one-off contracts, ongoing projects, and occasional freelance work. But without a steady salary, it’s up to you to protect that income if something unexpected happens.
That’s where income protection comes in. It’s one of the most common ways self-employed people safeguard their finances. If illness or injury stops you working, an income protection policy can cover between 50% and 70% of your usual income. Depending on the policy, this could be for a set period or until you reach retirement age.
For those with fluctuating earnings, proving income can be tricky but many insurers now have policies designed with variable incomes in mind. Some even offer mortgage or rent cover for up to two years, with flexible eligibility rules.
What it costs
The cost of income protection depends on factors like your age, job type, lifestyle, and health. An adviser can help you find a policy that matches your needs and budget.
If you’re looking to reduce the monthly cost, one option is to delay the start of payments. For example, if you have savings to cover a few weeks or months, you could choose a policy with a longer waiting period before it begins paying out this can significantly lower premiums.
Finding the right cover for you
Not all income protection policies are the same. Providers vary in cost, eligibility rules, and the type of cover they offer. That’s why it’s worth speaking to an adviser who understands the market.
We can:
- Find providers who can cover you
- Compare quotes to get the right fit
- Handle the application process and liaise with insurers on your behalf
Our goal is to make protecting your income simple, so you can get back to focusing on your work and enjoying the freedom self-employment brings without worrying about “what ifs.”
Because your income is more than just numbers - it’s your freedom, your lifestyle, and your future.
* https://www.statista.com/statistics/318234/united-kingdom-self-employed/
Please note: If premium payments are not maintained, the benefits of the plan will be put at risk. If premium payments cease altogether, the benefits of the plan will cease. The cover may be less than you need if you do not review it regularly.
