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Why income protection & critical illness cover are extra important for the self-employed

If you're self-employed in the UK, income protection and critical illness cover are extra critical. You don’t have the safety nets that employees do. Like statutory sick pay (SSP), employer sick leave, or workplace health benefits. But of course, no matter your employment status, income protection and critical illness cover add extra support when you need it most. 

Here are some reasons to consider taking out extra policies this year:

No Sick Pay or Employer Benefits
If you fall ill or have an accident, you won’t receive SSP. (Currently £116.75 per week, only if you qualify for Universal Credit or Employment Support Allowance). Unlike salaried employees, you won’t have workplace income protection, private healthcare, or death-in-service benefits.

Cover for Long-Term Illness or Injury
Income Protection Insurance replaces a portion (typically 50-70%) of your gross income if you're unable to work due to illness or injury. Helping you cover bills, rent/mortgage, and living costs. Critical Illness Cover pays a lump sum if you're diagnosed with a serious illness. Like cancer, stroke, or heart attack. Helping with medical costs, mortgage repayments, or lifestyle adjustments.

Stability for Your Business & Family
If you’re self-employed, your business depends on you. A long-term illness or accident could mean a loss of clients, contracts, and income. If you have a family or dependants, these policies provide financial support when you can't work.

Mortgage & Debt Protection
Many self-employed people rely on business loans, personal credit, or a mortgage. Income protection ensures you can keep up with repayments if you can't return to your usual role.

Peace of Mind & Flexibility
Private insurance gives reliable financial support and tailors to your needs. Some policies allow you to adjust cover based on fluctuating income.

Which One Do You Need?
•    Income Protection: Best for covering everyday living costs if you can’t work for an extended period.
•    Critical Illness Cover: Best for a lump sum payout in case of a life-altering illness.
For full protection, many self-employed people combine both. Ensuring financial stability for the unexpected.

Would you like advice on choosing a policy that fits your situation? We can help you find one specific to your needs. Give us a call today!

SPEAK TO AN ADVISER
 

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The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.

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A fee may be charged for mortgage advice. The exact amount will depend on your circumstances.

Our standard fee for mortgages is £395 and this is paid when the mortgage is offered. We charge a fee of £295 First-Time Buyers. Other fees may apply depending on the complexity of the work involved or loan amount. The maximum fee we can charge is £795.

Our standard fee for Equity Release is £895 and this is paid on completion.

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THINK CAREFULLY ABOUT SECURING OTHER DEBTS AGAINST YOUR HOME.

YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBTS SECURED ON IT.

BUY TO LET MORTGAGES ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.

EQUITY RELEASE: THIS IS A LIFETIME MORTGAGE. TO UNDERSTAND THE FEATURES AND RISKS, PLEASE ASK FOR A PERSONALISED ILLUSTRATION. CHECK THAT THIS MORTGAGE WILL MEET YOUR NEEDS IF YOU WANT TO MOVE OR SELL YOUR HOME OR YOU WANT YOUR FAMILY TO INHERIT IT. IF YOU ARE IN ANY DOUBT, SEEK INDEPENDENT ADVICE.


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