Self Employed Income Protection Insurance | Spectrum FA Protection
Date: 15 June 2017 Author: Lewis Cable
An Introduction to Self Employed Income Protection Insurance

An Introduction to Self Employed Income Protection Insurance

self employed income protection insurance

When you are self-employed, periods of illness or recovery from accidental injuries could leave you unable to support your family and/or pay your bills (mortgage, utilities, etc.). Self Employed Income Protection Insurance provides self-employed workers with vital financial support in case of illness or accidental injury.

Self Employed Income Protection Insurance

Should you fall ill or have an accident, Self Employed Income Protection Insurance will provide you with a monthly income either:

  • For a fixed period (usually 12 or 24 months)
  • Until you can return to work
  • Or the policy ends

Covering part of your usual income (typically between 50 and 60 per cent), this payment can assist you in maintaining mortgage payments/other financial commitments.

Factors to Consider When Choosing a Policy

When looking for Self Employed Income Protection Insurance, it is important to consider several factors, including:

Cover Amount – Some insurers allow you to insure higher percentages of your typical self-employed income than others. Checking cover amounts and criteria used by insurers to determine insurable income ensures you can obtain the cover you require.

Cost – Comparing premium prices is essential to ensure you get the best possible cover for your specific needs, at the most competitive rates.

Pay-out Periods – It is also important to check how long your Self Employed Income Protection Insurance policy will pay out for upon making a claim.

Eligibility Criteria – To ensure you can claim when necessary, you must also thoroughly check any eligibility criteria, maximum/minimum age limits and other terms & conditions.

Deferred Period – Self Employed Income Protection Insurance policies have a ‘deferred period’ (the time you must wait before making a claim). This may be 4, 13 or 26 and, in some policies, even 52 weeks. Longer deferred periods generally mean lower monthly premiums. However, when selecting longer deferred periods, it is imperative to ensure you have the financial means to meet your commitments in the meantime.

Spectrum Financial Advice

Our years of experience and access to leading insurers mean we can help you obtain the most suitable Self Employed Income Protection Insurance to meet your unique requirements. Call us on 01279 315 013 to learn more or please get in touch using our contact form.

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