Income Protection for Self-Employed

If you are self-employed or considering venturing into self-employment, it is crucial to assess your personal insurance needs.

If you are self-employed or considering venturing into self-employment, it is crucial to assess your personal insurance needs. Unlike traditional employment, being self-employed means, you lack the safety net provided by an employer for sick leave and health insurance.

Without sick pay benefits, self-employed individuals may have to rely on state benefits in case of illness or injury. To safeguard against potential financial challenges due to sickness, injury, or critical illness, many self-employed individuals opt for income protection insurance and critical illness cover.

For those with dependents, such as partners or children, obtaining life insurance is often a prudent choice. Various personal insurance products are available for consideration by self-employed professionals.

Long-term income protection insurance

Long-term income protection insurance ensures financial stability in the event of reduced earnings resulting from sickness or injury. Payouts under this policy typically continue until you can return to work or until the policy expires.

Short-term income protection insurance

Short-term policies, such as accident, sickness, and unemployment products, provide coverage for a limited period, usually one to two years. These policies, including payment protection and mortgage payment protection insurance, aim to cover outstanding debts.

Critical illness cover offers long-term protection by paying out a tax-free lump sum upon diagnosis of a covered serious illness, such as certain cancers, heart attack, or stroke. This lump sum can be used to settle debts, mortgages, or home modifications to accommodate health needs.

While critical illness insurance does not provide benefits in the event of death, life insurance is essential for individuals with dependents who rely on them financially. Private medical insurance can complement NHS services and help mitigate income loss due to waiting for NHS treatments.

If you previously had employer-provided health insurance, transitioning to self-employment means losing this benefit. Considering private medical insurance allows you to tailor your coverage preferences and access care promptly.

Moreover, if you operate your business from home, it is vital to review your insurance coverage. Standard home or contents insurance policies may not fully protect business assets in a home-based business setup. Inform your insurer about your work-from-home status to ensure adequate coverage and prevent potential claim denials.

When establishing a home-based business, communicate your plans to your insurer to explore additional coverage options. Failure to disclose changes in your business activities may invalidate your insurance and lead to claim denials. Prioritise protecting your financial well-being by proactively addressing your insurance needs as a self-employed individual.

Because we play by the book we want to tell you that…

For insurance business we offer products from a choice of insurers.

Frequently asked questions

Can I get a 95 mortgage if self-employed?

Can I get a first-time buyer mortgage if I’m self-employed?

Can I get a mortgage if self-employed for 1 year?

Can I remortgage if I’m self-employed?

Can I get a joint mortgage with a self-employed worker?

Do self-employed people have to pay higher mortgage rates?

Does being self-employed make it harder to get a mortgage?

saving money illustration

Mortgage calculators

Find out more
man thinking about house and money illustration

Your protection

Find out more

Latest news

This is my first experience with getting a mortgage, but Rob explained everything clearly, answering all my questions, and helped me get the best mortgage for me. Louis also helped by keeping me updated with the progress of the application and chasing the lender on my behalf. Overall, a positive experience.

  • 5 star review on TrustPilotMegan

I would recommend using Mortgage Decisions as they made the process of choosing my first mortgage so easy to understand . They were very knowledgeable on all the products available ,but mostly they were prompt . Thank you in-particular to Toby and Louis.

  • 5 star review on TrustPilotLindsay B

Kevin and Beccy have been extremely helpful - firstly in exploring viable options to suit my situation and secondly keeping me in the loop and dealing with queries that arose along the way. This is my second mortgage with them, both of which had possibly unusual elements and they were able to navigate me through them and find me good mortgages.

  • 5 star review on TrustPilotThea E

Excellent service with friendly staff who help you every step of the way. Russell and Max have been fantastic, professional and understanding throughout the process. Thoroughly recommend!

  • 5 star review on TrustPilotTimi O

I was highly impressed with the mortgage services provided. My needs were somewhat complex (some mortgage brokers refused to help me at all), but they managed to find me the best deal.

  • 5 star review on TrustPilotFee M