I’m self-employed. Do I need income protection insurance?

81% of self-employed workers aren’t seeking financial advice. It could be time to safeguard your future with income protection.

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There’s a lot to be said for self-employment. From creating your own schedule to generating greater income opportunities, the benefits to being your own boss are extensive. But what’s the catch?

Of course, such rewards are not without risk. Self-employed people could be vulnerable to financial hardship if they don’t have sufficient income protection in place.

It can be difficult to cover expenses without a regular paycheck, let alone save for the future. And in many cases, the self-employed are unable to claim the same benefits as those in regular employment. The last thing anyone wants in this economy is to worry about cashflow when they are sick or otherwise unable to work.

Fortunately, there are systems in place for people just like you. Income protection insurance takes many forms and may be exactly what you need.

How can I protect my income when I’m self-employed?

When self-employed, you wave goodbye to traditional employee benefits like sick pay. Income protection insurance could provide a financial safety net if you’re unable to work. Keen to find out more?

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Why should I seek financial advice on income protection?

A flexible schedule can mean an irregular income.

Having the right protection in place is a no-brainer. New research indicates that 57% of self-employed workers in the UK rely on personal savings when not earning. 64% revealed they are without a regular income, with just 23% receiving a monthly pay packet.

Cost of living crisis and rising rent.

Almost half (48%) of self-employed people see their income fluctuate as a result of owning a business. When faced with the cost of living crisis and rising rent, a quarter (24%) of those surveyed said they only had enough money to cover costs for three months if they were unable to work.

The self-employed are more vulnerable to financial shock.

Not being eligible for Statutory Sick Pay leaves the self-employed more vulnerable to financial shock. Needless to say, financial resilience and income protection is vital for the self-employed. Unfortunately, a whopping one in three think they can’t afford professional advice.

We want to flip that narrative on its head.

Is income protection insurance right for me?

Many have taken steps to secure income protection for themselves and their families. That being said, 13% of self-employed workers in the UK still don’t have critical illness cover or life insurance.

Knowing where to get started, or what type of cover best suits your needs can be tricky. We pride ourselves on giving clear, straight talking advice that works for you. Cut the hassle and save time by chatting with a member of our team today.

The research was carried out online by Opinium Research across a total of 2,002 UK adults (Booster sample of 502 self-employed workers and 1,015 Renters). Fieldwork was carried out between 21–27 October 2021.