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Self-Employed Income Protection
Income protection will pay you a monthly tax-free benefit if you are unable to work because of accident or sickness. Income protection insurance is available for both the employed and the self-employed, and is particularly useful if you do not have sick pay to fall back on if you became too ill to work. With ActiveQuote, it is easy to compare self-employed income protection insurance quotes online from across the UK to find the right policy at an affordable price.
Why would I need Self-Employed Income Insurance?
Income protection for the self-employed is one of the most important types of insurance to consider when moving from a staff job to self-employment. Whilst a staff job will usually offer company sick pay or employee sickness insurance, being self-employed means you need to think about how you could cope financially if you were unable to work because of an illness or accident.
Income insurance for self-employed people is ideal for anybody who works for themselves or runs their own business. Rather than relying on Government incapacity allowance of £101.15 a week, you could receive between 50% and 70% of your income if you were unable to work due to illness or injury.
How does Income Protection for the Self Employed work?
Income protection insurance for self-employed people works in the same way as a standard income protection insurance policy. Self-employed insurance will provide you with a regular tax free income if you cannot work due to illness or injury.
Income insurance for self-employed workers in the UK usually covers between 50 and 70 per cent of your income. However, the earnings are calculated differently for self-employed workers, based on your share of the annual pre-tax profits.
Like regular income protection policies, the monthly benefits from a self-employed income protection policy can be used however you choose, whether that’s for mortgage payment, bills or other lifestyle expenses.
How long will self-employed Income Protection policies pay out for?
Like other income protection policies, self-employed income protection falls under two categories: short term policies and long term policies. Short term policies will only pay out for a maximum of 12 months, whilst long term policies could pay out until the end of the policy term- usually retirement.
What about Unemployment Insurance for the Self-Employed?
Many self-employed people are interested in unemployment insurance. However, the qualifying criteria for unemployment cover are much stricter for self-employed workers. Many self-employed unemployment insurance policies state that the business must have been wound up through ‘no fault of your own’ in order for you to claim, and this can be difficult to prove.
One of our specialist advisers would be happy to explain unemployed insurance for the self-employed in more detail.
Why should I use ActiveQuote to compare policies?
Rather than visiting each insurer individually, why not compare self-employment income protection insurance quotes with us now? Our comparison system allows you to compare income protection quotes online in minutes, and buy a policy straight away.
As you can see, there are many different factors that can affect the cost of your self-employed insurance and your cover. ActiveQuote is an FCA authorised broker with a team of expert advisers to help you choose between your self-employed income insurance quotes. Our team will also annually review your self-employed income protection insurance policy to make sure you are getting the right cover for the best price.
If you are self-employed you might also want to consider investing in a health insurance policy, which could allow you to avoid long NHS queues and receive medical treatment quickly and with a specialist of your choice.