If you can’t work, you can’t earn – unless you have Income Protection.
People in permanent jobs have the benefit of receiving sick pay. As a contractor, you don’t have this luxury which is why it’s so important to have Income Protection. It gives you the peace of mind that if you become ill, you’ll be paid a regular wage so you can look after the bills, until you’re well enough to return to work.
Income Protection – what you need to know
- Provides a regular wage if you become ill
- Usually 50% -70% of your normal income
- Pays out once a ‘deferral period’ has passed
- The longer the ‘deferral period’, the lower the monthly premiums
- Covers you until you’re well enough to work again
- Cover only lasts while you keep up monthly payments
- Pay out is tax free if paid from your own pocket
- Tax deductible if paid for through the business, but you will be taxed if you make a claim
What’s the difference between Income Protection and Critical Illness cover?
The major difference is that Income Protection is for illnesses where you are expected to make a recovery. The money is there to tide you over. However, Critical Illness assumes that you are not going to make a recovery and will not be well enough to work again e.g. a tree surgeon who becomes wheel chair bound. The one-off payment Critical Illness provides is to look after you and your family for the foreseeable future.
Helping you deal with the small print.
As with all protection, getting the details right is crucial. This is where the small print can trip you up. No problem, we can put policies into plain English so you know exactly what you’re covered for. We’ll also make sure any policies adequately cover your needs so you’re not left high and dry should you become ill.