Income protection
For many of the self employed it seems that the recent financial crisis has been harder than those who are employed by international companies. With so many small, local businesses shutting down across the country it can at times seem amazing that even a handful have struggled on. But when you look at the protection out there for the self employed it is really not surprising that many businesses have gone under. While employees find they are eligible for a number of policies and payment protection many self employed find they are unable to join these.However one of the most important insurances at the moment, income protection is available to anyone who is self employed. But what is income protection and why is it so important to have? To put it simply income protection insurance pays your wage if you are unable to work due to illness or an injury. As we all know if you are self employed you do not receive sick pay, although you may be able to claim employment and support allowance instead. Income protection doesn’t substitute this; sick pay tends to be for short periods of illness such as fevers or colds whereas income protection is for the more serious long term illnesses such as cancer.
As with all insurance policies it is important to read the fine print of any income protection insurance to make sure you know when you are and you aren’t covered and how long you are covered for. Typically speaking income protection will pay out your after tax salary with deductions for any state benefits you may be able to claim. It is designed to help take the financial worry off your shoulders and help keep your family and home safe and in the style they have become accustomed to while you are recovering from any illness or injury that keeps you from working.
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