Insurance For Loss of Income
If you’re unable to work due to illness or injury, income protection insurance will be triggered and you’ll receive regular payments to replace your income. This means you can focus on getting better rather than worrying about how you’re going to cover bills such as the mortgage, groceries, healthcare, childcare, school fees, or other commitments.
Income protection cover payments are usually paid monthly.
Self Employed Income Insurance
Income protection insurance policies are available for self-employed too. There are just a few more things to consider.
Most self-employed people don't have financial protection if they are ill and cannot work because they rely on their business's income to survive. Without an income protection policy, self-employed people could quickly face financial ruin if they could not work. The self-employed usually lack the financial safety net of employees, such as sick leave, as if they stop working, even for a day, their income stops.
Self-employed individuals are, in many cases, higher risk to insurers compared to full-time employed workers due to the industries they work in. For instance, construction tradespeople rather than being office-based. This increase in risk can mean an increase in price.
For the self-employed, calculations of the income insurance cover amount can also be more challenging, and need to be agreed upon with the insurer upfront before the policy is issued. This is because many self-employed individuals may run expenses through their own businesses, which minimises their taxable income. For example, a builder or farmer who drives a work vehicle on the weekends. This minimises the annual taxable income, but if historical income figures were used for income protection purposes that may be insufficient come claim time. This can be a tricky area to understand, so to learn more please book a complimentary initial consultation with one of our team, it'd be our pleasure to assist.