It was recently discovered that approximately two million of the UK’s self-employed can’t afford to save a penny each month.
Only 4% have income protection insurance to cover their outgoings if they find themselves unable to work for any reason, which would leave them struggling to cope financially.
With so much at stake and the price of income protection insurance being relatively low, why are so many of our self-employed unprotected?
Research carried out by LV found that 42% of self-employed people think they aren’t eligible for income protection policies. They are wrong.
Self-employed people don’t have the safety net of employers’ benefits, like sick pay, they could be taking advantage of some form of income protection to avoid having to rely on state support if they couldn’t work because of accident, disability or sickness.
Cost is another misconception. 37% of self-employed people thought that income protection would be too expensive, though in fact cover of £1,000 a month could cost less than £10 a month. Having income protection would prevent people from having to claim on the state, which is not an easy process. To apply for Employment and Support Allowance there is a nearly 60 page claim form, a lengthy assessment process, and weekly benefits are less than £80.
If you would like to find out more about your options regarding income protection, then please give Limetree Financial Services a call today.