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Thursday 23 January 2025
Thursday 23 January 2025
Thursday 23 January 2025
Thursday 23 January 2025
Being self-employed offers freedoms, but it also comes with unique responsibilities—especially when it comes to protecting your income, health, and family. Without access to benefits like sick pay or employer-provided insurance, self-employed individuals must take proactive steps to secure their financial stability.Here’s a guide to the key protection options available for self-employed individuals:
Why Protection Policies Matter for the Self-Employed
As a self-employed professional, your income depends entirely on your ability to work. An unexpected illness, injury, or death could leave your family in financial turmoil. Without a safety net, you risk losing your income, home, and stability. Protection policies provide financial support when life doesn’t go as planned, ensuring peace of mind and security.
The Key Types of Protection Policies
1. Income Protection Insurance
Income protection offers a regular monthly income if you’re unable to work due to illness or injury. It’s a long-term policy designed to replace a portion of your income until you recover, return to work, or retire.
How It Works:
You’ll receive regular payments (typically 50-70% of your income) after a deferred period (e.g., 4, 8, or 12 weeks).
Payments continue until you’re fit to work or the policy term ends.
Policies are tailored to your specific needs, including your profession and earnings.
Why It’s Essential:
As a self-employed person, you don’t have sick pay to fall back on. Income protection ensures you can keep up with living expenses, like mortgage payments, utility bills, and childcare costs, even if you’re too ill or injured to work.
2. Critical Illness Cover
Critical illness cover provides a one-off, tax-free lump sum if you’re diagnosed with a serious illness covered by the policy. Common conditions include cancer, heart attacks, strokes, and major organ failure.
How It Works:
You’ll receive a lump sum if you’re diagnosed with a specified illness or undergo a critical medical procedure.
Once the lump sum is paid, the policy ends.
Why It’s Essential:
A critical illness can leave you unable to work for months or even years. The payout can be used to:
Cover your living expenses.
Pay off your mortgage or other debts.
Adapt your home for accessibility if you’re left with a disability.
The earlier you take out critical illness cover, the lower your premiums will be, making it a smart investment for the future.
3. Life Insurance
Life insurance provides financial protection for your loved ones if you pass away. It’s particularly important for self-employed individuals with dependents who rely on their income.
How It Works:
You choose a policy term (e.g., 10, 20, or 30 years) and a payout amount.
If you die during the policy term, your beneficiaries receive a tax-free lump sum.
Why It’s Essential:
Life insurance ensures your family won’t struggle financially if you’re no longer there to support them. The payout can be used to:
Pay off a mortgage or other debts.
Cover household expenses.
Provide an inheritance for your loved ones.
Choosing the Right Protection Policy
The best protection policy depends on your individual circumstances, including your income, family situation, and financial commitments.
Assess Your Needs:
Do you have dependents?
How much income do you need to maintain your lifestyle?
What debts or expenses need covering?
Understand the Policies:
Income protection is ideal if you want ongoing support during illness or injury.
Critical illness cover provides a lump sum for specific conditions.
Life insurance is essential for dependents who rely on your income.
Consider Combining Policies:
Many self-employed individuals benefit from a mix of life insurance, critical illness cover, and income protection for comprehensive coverage.
Why Work with Barrett Mortgages?
Navigating protection policies can be overwhelming, especially with so many providers and options available. Barrett Mortgages can:
Assess your needs and recommend the most suitable policies.
Compare quotes from reputable insurers to find the best value.
Ensure you have adequate coverage without overpaying.
Secure Your Future Today
Self-employed protection policies are an investment in your peace of mind. They ensure that you and your loved ones are financially secure, no matter what life throws your way.
Contact us today to explore tailored protection solutions and find the right mix of policies for your unique needs. Protect your income, your health, and your family—starting now.
Being self-employed offers freedoms, but it also comes with unique responsibilities—especially when it comes to protecting your income, health, and family. Without access to benefits like sick pay or employer-provided insurance, self-employed individuals must take proactive steps to secure their financial stability.Here’s a guide to the key protection options available for self-employed individuals:
Why Protection Policies Matter for the Self-Employed
As a self-employed professional, your income depends entirely on your ability to work. An unexpected illness, injury, or death could leave your family in financial turmoil. Without a safety net, you risk losing your income, home, and stability. Protection policies provide financial support when life doesn’t go as planned, ensuring peace of mind and security.
The Key Types of Protection Policies
1. Income Protection Insurance
Income protection offers a regular monthly income if you’re unable to work due to illness or injury. It’s a long-term policy designed to replace a portion of your income until you recover, return to work, or retire.
How It Works:
You’ll receive regular payments (typically 50-70% of your income) after a deferred period (e.g., 4, 8, or 12 weeks).
Payments continue until you’re fit to work or the policy term ends.
Policies are tailored to your specific needs, including your profession and earnings.
Why It’s Essential:
As a self-employed person, you don’t have sick pay to fall back on. Income protection ensures you can keep up with living expenses, like mortgage payments, utility bills, and childcare costs, even if you’re too ill or injured to work.
2. Critical Illness Cover
Critical illness cover provides a one-off, tax-free lump sum if you’re diagnosed with a serious illness covered by the policy. Common conditions include cancer, heart attacks, strokes, and major organ failure.
How It Works:
You’ll receive a lump sum if you’re diagnosed with a specified illness or undergo a critical medical procedure.
Once the lump sum is paid, the policy ends.
Why It’s Essential:
A critical illness can leave you unable to work for months or even years. The payout can be used to:
Cover your living expenses.
Pay off your mortgage or other debts.
Adapt your home for accessibility if you’re left with a disability.
The earlier you take out critical illness cover, the lower your premiums will be, making it a smart investment for the future.
3. Life Insurance
Life insurance provides financial protection for your loved ones if you pass away. It’s particularly important for self-employed individuals with dependents who rely on their income.
How It Works:
You choose a policy term (e.g., 10, 20, or 30 years) and a payout amount.
If you die during the policy term, your beneficiaries receive a tax-free lump sum.
Why It’s Essential:
Life insurance ensures your family won’t struggle financially if you’re no longer there to support them. The payout can be used to:
Pay off a mortgage or other debts.
Cover household expenses.
Provide an inheritance for your loved ones.
Choosing the Right Protection Policy
The best protection policy depends on your individual circumstances, including your income, family situation, and financial commitments.
Assess Your Needs:
Do you have dependents?
How much income do you need to maintain your lifestyle?
What debts or expenses need covering?
Understand the Policies:
Income protection is ideal if you want ongoing support during illness or injury.
Critical illness cover provides a lump sum for specific conditions.
Life insurance is essential for dependents who rely on your income.
Consider Combining Policies:
Many self-employed individuals benefit from a mix of life insurance, critical illness cover, and income protection for comprehensive coverage.
Why Work with Barrett Mortgages?
Navigating protection policies can be overwhelming, especially with so many providers and options available. Barrett Mortgages can:
Assess your needs and recommend the most suitable policies.
Compare quotes from reputable insurers to find the best value.
Ensure you have adequate coverage without overpaying.
Secure Your Future Today
Self-employed protection policies are an investment in your peace of mind. They ensure that you and your loved ones are financially secure, no matter what life throws your way.
Contact us today to explore tailored protection solutions and find the right mix of policies for your unique needs. Protect your income, your health, and your family—starting now.
