Freelancing can be as much a lifestyle as it is a career choice. While some people only freelance between permanent jobs, some people freelance for most of their working life. It suits people who thrive on variety and change. The pay can be very good indeed regardless of sector. From graphic designers to IT whizzes the pay rates can far exceed those offered to permanent employees. This is especially true if you have specialist in-demand skills.
But it’s easy to forget that out of the higher pay, freelancers have to make their own tax and insurance arrangements. Freelancers are after all self-employed. While most operate through limited companies, insurance arrangements are far less standard. For example protection for freelancers is often overlooked which is surprising since as a ‘profession’ it’s inherently risky.
As a freelancer you don’t earn if you are between assignments or sick. Income protection provides an income if you are unable to work through illness. Freelancers should definitely consider it. Employees can sometimes fall back on company policies, but freelancers have to provide their own cover.
Think about it for a moment. Freelancing can support an expensive lifestyle. If you are the sole or main earner, the loss of your income for any length of time can have a profound impact on finances and family life.
Income protection policies such as those provided by us can be tailored to suit your circumstances. But because we are a mutual society our rates are comparatively low, and you get a tax free lump sum on retirement.
It’s possible to insure up to £1200 pounds a week and the benefit can kick in from 4 to 52 weeks after you become unable to work. This form of protection for freelancers also continues to pay out until you can work again. Income protection also covers the widest possible range of conditions including stress related illnesses. The policy benefit is yours to spend how you like.
Income protection is the only type of protection offering this type of extended cover. While you’re unable to work, income protection will shore up your finances until you are back on your feet. If you’re a freelancer it’s a sound way to off-set some of the risk of being self-employed.
To find out more about income protection for freelancers please contact us.