In the ever-evolving landscape of the modern workforce, self-employment has become an increasingly popular choice for many in the UK. Whether you’re a freelancer designer, a small business owner, or a gig economy worker, being your own boss offers a sense of freedom and flexibility that traditional employment often can’t match. 

However, with this autonomy comes the responsibility to manage your own financial security. While there are restrictions in place in standard employment, you’re entitled to sick leave from your company if you become ill. If you become ill while you’re self-employed, you’re solely responsible for handling the sudden lack of income. 

Let’s explore how you can safeguard yourself against this possibility.

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The role of income protection in self-employment

One of the most significant challenges self-employed people face is income instability. Unlike employed workers, who receive a regular paycheck, self-employment can mean fluctuations in your earnings. Business income can vary month to month, even year to year, making it challenging to predict and plan for financial stability. 

While self-employment can mean the potential for higher income (plus flexible working hours), it also entails certain risks and uncertainties that employees in traditional roles may not face.

Income protection is a financial safety net, designed to support those who are unable to work due to illness, injury, or disability. While it’s not mandatory for self-employed individuals, it can be a crucial tool in your financial wellbeing toolkit. 

Here are a few reasons why you should consider income protection if you’re self-employed:

Financial security in uncertain times

Life is unpredictable, and accidents or health issues can strike anyone at any time. Without income protection, self-employed individuals risk losing their primary source of income when they can’t work due to unforeseen circumstances. Income protection provides a steady stream of income during these challenging periods, helping to maintain your financial stability.

Peace of mind

Knowing that you have a safety net in place can significantly reduce stress and anxiety. Self-employed individuals often worry about the impact of a sudden illness or injury on their livelihoods. Income protection offers peace of mind, allowing you to focus on your recovery without the added stress of financial concerns.

Protection for your business

Many self-employed individuals have invested significant time and resources into building their businesses. Depending on your business structure, income protection ensures that your business can continue to operate, even when you can't actively participate. This can help safeguard your business's reputation and client relationships.

Customised coverage

Income protection policies can be tailored to your specific needs and circumstances. You can choose the waiting period before benefits kick in, the duration of coverage, and the monthly benefit amount. This flexibility allows you to create a policy that aligns with your financial goals and obligations.

Secure your financial future with income protection

While being self-employed can be rewarding, and offers several advantages, it also comes with a unique set of challenges. In the financial realm, this is the inherent uncertainty you may face when considering what would happen if you got sick and couldn’t work. 

Income protection for self-employed people can be an invaluable tool and could provide financial security, peace of mind, and the potential for business continuity. 

In an uncertain world, income protection can be your safety net. Let us help you weather any storm that may come your way. Get in touch today and let’s discuss how we can help you protect your financial future.

Important information

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

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