The self-employed should review their income protection
Monday 18 December, 2017
Thomas Oliver’s Hertfordshire Mortgage Broker and protection specialist, Vishal Gulrajani, considers why the self-employed should purchase income protection.
Vishal Gulrajani, Mortgage Broker and protection specialist in Goff’s Oak & Cheshunt said:
‘Many of my articles consider income protection because income is critical to maintaining our lifestyle. When my clients require protection advice I always recommend the first insurance they consider is one that protects their income. For the self-employed this is particularly important. According to Terry Gangcuangco, Insurance Business UK, 42% of self-employed consumers incorrectly assume that they are not eligible for income protection. This is a staggering statistic and partly explains why only 4% of the self-employed community purchase income protection compared to the national average of 11%. For this reason I recommend anyone who is self-employed seeks protection advice. There are now more options and solutions available, and just because you are self-employed does not necessarily mean you will be disadvantaged.’
Vishal Gulrajani, Mortgage Broker and protection specialist in Goff’s Oak & Cheshunt continued:
‘Income protection is so important for the self-employed because unfortunately, unlike the employed they are not entitled to employer benefits. As a result if a self-employed person is out of work due to illness or injury, they would have to rely on their own savings. According to Gangcuangco 33% of self-employed individuals could not survive more than 3 months without an income. These statistics are alarming but come as no surprise. Remember if your self-employed income is the main income for your partner and family, it is not only you that suffers if you do not have adequate protection in place. As a self-employed person I know it can be difficult as despite the tax advantages you do have to pay for everything yourself. However, the point of being self-employed is to be self-financing and this can’t be achieved if you’re not covered in a worst case scenario. If you want to arrange a meeting to discuss income protection please contact me on 01707 872000. Thomas Oliver offer a free initial consultation.
In summary it is important for both the employed and self-employed to review their income protection cover, however it is more pressing for the self-employed as they are not entitled to employer benefits. As a self-employed person it is easy to overlook income protection but just because there is no employer paying for your flexible benefits doesn’t mean you shouldn’t review it.
For more information read: Vishal Gulrajani, Mortgage Broker and protection specialist in Goff’s Oak & Cheshunt: Financial advice should be a priority for the self-employed, How to get the right protection policy for your needs.