Imagine this: you’re injured or seriously ill and can’t work for weeks, maybe months. The bills keep coming, your mortgage still needs paying, and the food shop has to continue. Could you cope financially?
Unfortunately, this is the reality for many tradespeople and self-employed professionals who keep the UK running but are left exposed when life throws a curveball.
Let’s say you got a carpal tunnel diagnosis, which meant you couldn’t continue your job as an electrician. Without income protection, you might not be able to afford the three months off you’d need for the surgery and to recover.
So, let’s dive into what income protection is, and tackle some misconceptions about this insurance.
Income protection insurance is a financial safety net. If illness or injury stops you from working, it pays you a regular income until you’re fit to return to your job, meaning you can still pay your bills, support your family, and keep the lights on.
It’s not to be confused with critical illness cover (which pays a one-off lump sum if you’re diagnosed with a serious condition) or mortgage payment protection (which covers your mortgage specifically). Income protection is broader. It covers a wide range of illnesses and injuries that prevent you from working for a period of time.
And it’s not just for individuals. Businesses can also take out group income protection insurance for their employees, helping to cover staff absences and providing financial support when team members are off sick. So if you’ve got a team, the benefits could be twofold.
Self-employed people often fall through the cracks when it comes to financial support. Here’s why income protection could be a lifeline:
Income protection covers a wide range of illnesses and injuries – basically, anything that stops you from being able to do your job for a while. This could be a physical illness like cancer or a heart attack, or a mental health condition such as stress or anxiety.
It’s worth knowing that most policies won’t cover health issues you already had before taking out the insurance. These are called pre-existing conditions. And if you’re made redundant, income protection won’t cover that either.
Jobs are typically grouped into categories based on risk. For example, an electrician might fall into a higher-risk category than a teacher or shop assistant, meaning their premiums could be more expensive. But that reflects the greater chance they may need to make a claim.
You can also choose between policies with guaranteed premiums, which stay the same over time, and reviewable premiums, which can go up.
Being unable to work through illness or injury isn’t something anyone wants to think about, but planning ahead means you won’t be caught out.
If you’re self-employed, a tradesperson, or running your own business, income protection insurance could make the difference between staying afloat financially or struggling to cover the basics. It’s about safeguarding the life you’ve worked hard to build.
Want to learn more about protecting your income? Speak to the team at Howden Insurance. We’ll help you find cover that fits your job, your lifestyle, and your budget, so you can work hard today, without worrying about tomorrow.
Sources: Which?, Coverttradeinsurance, SimplyBusiness.
My husband and I run thebestof Shrewsbury. We have over 40 years' combined marketing experience (scary) to help businesses grow. Thebestof Shrewsbury promotes local businesses through our high-traffic...
The following Cookies are used on this site. Users who allow all the Cookies will enjoy the best experience and all functionality on the site will be available to you.
You can choose to disable any of the Cookies by un-ticking the box below but if you do so your experience with the Site is likely to be diminished.
In order to interact with this site.
To show content from Google Maps.
To show content from YouTube.
To show content from Vimeo.
To share content across multiple platforms.
To view and book events.
To show user avatars and twitter feeds.
To show content from TourMkr.
To interact with Facebook.
To show content from WalkInto.