As a self-employed individual do, I qualify for an income protection insurance policy?
There is no particular reason why an income protection insurance policy will not cover for self-employed individuals.
In the UK, there Is a sudden surge of individuals choosing to become self-employed; hence, the income protection insurance works for them as effectively as it does for other employment types.
There are several things that people gain and lose after choosing self-employment. Fortunately, income protection is again that you will be making after transitioning.
What is self-employed income protection insurance?
- The self-employed income protection policy is designed to protect the self-employed in case they are temporarily unable to work due to an illness or accident.
- It replaces a certain percentage of their income for a specific period.
- The pay-out is a monthly payment after a claim has been made.
- Self-employed income protection insurance policies tend to either come as long term or short-term packages.
- The premiums are paid monthly to the insurer.
Entitlement for an income protection insurance takes out as a self-employed professional.
There are a variety of self-employed income protection plans and packages available for customers to choose that suits their needs the best.
To become eligible, you will have to meet your insurer’s demand for evidence of your income statistics. This is important because the maximum cover entitlements are calculated based on the current income.
The evidence needs to be submitted after or before a claim is made.
The general coverage ranges between 50 percent to 70 percent.
What is the deferred period?
The deferred period is the term used to explain the beginning of the time when the policyholder can no longer work, when the policy kicks in to make monthly pay-outs as a cover.
The deferred period entails that the policyholder has two options to choose from:
- Continuing the deferred period
It can extend from 7 days to 12 months. But the deferred period for self-employed individuals is shorter.
- Pay-out period
The length of the monthly coverage amount paid to the policyholder is a predetermined factor at the beginning of an income protection policy.
We would recommend you to talk to one of our advisers for life insurance quotes.
Any quote that your adviser provides you with will take into account your circumstances, your medical history, as well as your budget!
Call 011-3733-4610 – Monday to Thursday from 11.00 to 19.00 and on Friday between 11.00 and 16.00