As a contractor you do not have the same benefits as employees do. It is important therefore to take out cover in the event that you cannot do your own job, especially if you are the sole breadwinner in your family.
The Financial Conduct Authority does not regulate on Estate Planning.
“The one protection policy every working adult in the UK should consider is the very one most of us don’t have – income protection.” Which? 2014.
Most IT consultants, Project Managers, self-employed Ltd co directors and sole traders will require some form of income protection.
What is contractor income protection insurance?
Income protection insurance for contractors and consultants is designed to protect your earnings against the risk of short-term and long-term sickness and injury or more specifically, against the risk of not being able to do your own occupation, depending on the nature of your work.
Accident, sickness and unemployment insurance (ASU) is often mistakenly confused with income Protection, where ASU is now considered a redundant insurance and no longer a readily available product. Income Protection on the other hand is a comprehensive long-term coverage that pays out a monthly benefit until the end of the policy term, which is typically selected to coincide with your expected retirement date, or state retirement age if earlier.
Do I need it?
As a contractor you are exposed to loss of income immediately on the day you cannot work.
In the event that you cannot do your job for a protracted period of time, or indefinitely for that matter, could you maintain your lifestyle if you suffered a total loss of income, and if yes, for how long?
Income protection for self-employed contractors
As specialist brokers, we will be able to recommend a bespoke income protection policy catered to your profession and circumstances: It is important to seek expert help from a good financial adviser to find the right cover for you tailored to fit in with your holistic financial circumstances.
Get in touch to discuss your income protection requirements.