Those who are self-employed rarely have an employer to rely on for sickness cover. As you are working for yourself, it is rare that you are able to rely on sick pay, unless you have taken out protection.
Latest research conducted by Scottish Widows expresses that self-employed work is growing drastically, however, the majority of self-employed workers do not feel the need to prioritise protection insurance for their families.
Many would consider income to be the foundation to all our lives, however, 4.3 million of 4.79 million self employed workers do not have protection in place should they be unable to work due to illness.
The research indicates that self-employed workers outgoings are marginally greater than average and that a staggering two thirds of self employed workers are reliant on only one income.
The question is, would you be able to pay for necessities such as your household bills and mortgages, if you or your partner were unable to work?
There are two routes of protection plan that provide you with the possibility to carry on living day to day, should you fall ill and are unable to work, either Critical Illness Cover or Income Protection.
Through taking out an income protection policy, you could be paid a regular (tax-free) income if you're unable to work due to ill health. The income can then be used to help pay for essential outgoings and to provide for your family.
The Seven Families initiative was set up by insurers to help convey what life can be like with or without income protection when people do become too ill to work. See their stories here.
Critical illness insurance pays out on diagnosis of one of a number of serious diseases or medical conditions, such as Cancer, Heart Attack, stroke and many others. The pay-out can be taken as a lump sum or a regular income.
Few of us have enough savings in place to provide our dependents with financial security if we are out of work due to illness, so it's worth protecting yourself against such an event.
If you are self-employed, it could be even more vital now than ever to have a back up plan in place. It isn’t particularly something you want to be thinking about, wondering what if you were to fall critically ill, but being aware that your family would not be left struggling may give you piece of mind.
If you would like to discuss the policies available specifically to you, speak to one of our specialist Financial Protection Advisers today.