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 ensures financial stability in the event of reduced earnings resulting from sickness or injury. Pay-outs under this policy typically continue until you can return to work or until the policy expires.

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.

Speak to our experts

With access to 1000s mortgages from over 90 high street lenders, we can help you find the right mortgage. Our five-star Google reviews back this up. Call us now and speak to a member of our experienced team.

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?

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

For insurance business we offer products from a choice of insurers. Your home may be repossessed if you do not keep up repayments on your mortgage. There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.

saving money illustration

Mortgage calculators

Find out more
man thinking about house and money illustration

Your protection

Find out more

Latest news

As a first time buyer, I was in the dark on how the process worked but having the support Beccy and Mark throughout made our journey a lot easier. Both friendly, approachable and knowledgeable a broker. I would recommend.

  • 5 star review on TrustPilotJonathan P

Would give them more stars if possible! John and Russell being on-hand, promptly respond and chase updates, they are unbelievably exceptional.

  • 5 star review on TrustPilotKarim A

Fantastic service from Mark on securing me a mortgage offer under my difficult circumstances, thanks for all the work and effort. A real asset to the business.

  • 5 star review on TrustPilotLR O

Chawley and Amber have both been extremely helpful and accommodating throughout all stages of the process. I would highly recommend them to fellow first time buyers, as well as anyone needing mortgage advice. Thank you both!

  • 5 star review on TrustPilotAlex T

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