When it comes to self employment the key question you have to ask is how would you cope if you were unable to get to meetings or work as normal? Could you still meet your financial obligations? For how long?  We find that once self employed professionals give serious consideration to this question they want to know what type of cover is likely to offer them the greatest protection. There are of course many different types of policy available, but the key thing is that some only offer a very narrow level of protection.

Income protection versus payment protection

You may already have heard of payment protection and income protection. But it’s important not to confuse the two because they really couldn’t be more different. Income protection does just that. It pays out to cover shortfalls in your income should you not be able to work. Payment protection is commonly sold alongside credit cards and mortgages and is very specific and short term. It is designed to cover the payment for something rather than provide you with income.

Income protection versus critical illness cover       

Philosophically income protection has more in common with critical illness cover but even here there are crucial differences. Critical illness will pay out a lump sum for specific medical conditions such as cancer. Income payment protection pays out against any including illnesses such as stress. As a result a greater proportion of critical illness claims, in general, are turned down.

What about personal accident and sickness cover?

These policies will only pay out a lump sum rather than recurring payments for personal accidents and typically only physical illness but not conditions related to mental health.

The nub of the matter is that income protection gives the self employed greater protection from loss of income and therefore more peace of mind. For example, our Immediate Cover Plan provides up to 66% of your income from the first day of your illness or injury.  And there’s no deferment period and no penalty for frequent claims.