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Income protection insurance for the self-employed

Last post Fri, Oct 02 2009, 2:29 PM by Cuyahogen. 2 replies.
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  •  Fri, Oct 02 2009, 2:29 PM

    Re: Income protection insurance for the self-employed

    Thanks very much for this.
    • Post Points: 5
  •  Fri, Oct 02 2009, 2:17 PM

    Re: Income protection insurance for the self-employed

    Hi

    I have some experience of Income protection insurance both professionally (I used to sell it) and personally (I made a claim on it!).

    Income Protection insurance (or Permanent Health Insurance as it used to be called) will pay a fixed or increasing sum of money (usually monthly) to a fixed age (usually between 50 & 65). It will typically have a minimum deferred period (the minimum amount of time you have to be off work ill) of at least 4 weeks but could be 8, 13, 26 even 52 weeks. The amount of monthly benefit that you can insure will depend upon your income or in the case of a self employed person the net profit shown in the annual accounts or declared to HMRC. Depending on the company chosen this can't be more than 60-75% of the individuals income.

    Making a claim is simple (he says somewhat tongue in cheek!). You need to produce evidence of your income and your illness. For your illness this could be a sick note from your doctor (you can get a sick note whether self employed or employed) but more likely the insurer will write to the doctor for a report.

    Unfortunately I can't recommend a product because I hate all insurance companies - they are only interested in two things taking your premiums and then finding a way (however elaborate) or wriggling out of paying the claim. But that's just my bitter experience!!

    • Post Points: 20
  •  Tue, Sep 29 2009, 12:20 PM

    Income protection insurance for the self-employed

    Hi,

    My wife is a self-employed childminder and we are soon going to be in a position to take out income protection insurance. She currently earns about £400 a month more than I do - I'm employed - and if she were unable to work for whatever reason we'd be in serious trouble.

    Is there any insurance available that might be worth having? My main concern is that as she's self-employed, how would she make a valid claim if it became necessary? From what I know of insurance claims there's always a requirement from an employer to confirm that the person claiming is off sick - how would that work in her case? If you have any recommended products I would appreciate knowing about them.

    Many thanks.

    • Post Points: 20