Why entrepreneurs should protect their income

Last week marked Global Entrepreneurship Week, which promotes the support available for new companies. Starting up on your own can be financially demanding but there are simple ways to minimise stress and protect your hard earned money…

More people than ever before have been tempted to set up on their own meaning the importance of good insurance is vital so the business doesn’t stumble out of the starting blocks.

Here are our three top reasons why every self-employed person should choose Income Protection insurance:

  • Running a business is full of challenges and you can’t plan for every eventuality. However, statistically you have a one in seven chance of being off work for more than six months due to illness or injury*, so it’s good to have a safety net in place
  • Income protection insurance provides a monthly tax-free income for people  unable to work due to illness or injury covering your salary long term until you recover
  • Most entrepreneurs starting out actually make up the entire business. So what would you do if you were too ill to work? Income Protection means you can afford to get temporary support staff in until you are well enough to return
  • Having a back-up plan means you have one less thing to worry about, leaving you to fully concentrate on growing your business.

A good way to think about whether you need this insurance is to ask yourself: “If I couldn’t work due to unexpected illness or injury, how would I manage my finances without this income?”

Taking some time to plan ahead means your hard-earned income is protected and your enterprise has every chance of success.

We wish every new business starting out the very best of luck. You have lots of rewarding times ahead.