Meta: What is self-employed income protection insurance and do you need a health check to qualify for it? Our team at WIS Business Protection has all the information you need.
If you’re self-employed, you’ll be well aware that you don’t receive any type of sick pay when you’re ill. You don’t even receive redundancy pay if a longer-term illness means that you have to leave your job. As such, it could be worthwhile to invest in self-employed income protection insurance. But what is self-employed income protection insurance and do you need a health check to qualify for it?
What is self-employed income protection insurance?
Self-employed income protection insurance is a policy that is designed to cover you in the event that you fall ill or get injured and you have to take time off work to receive treatment. It provides many self-employed people with peace of mind. The money paid out can help to cover mortgage payments, bills, debts and the cost of living so you can focus on getting better.
It’s a policy that is recommended for all those who are self-employed as you never know what’s down the road. However, it’s particularly recommended for those who work in more manual industries – such as construction – as this is where injuries are much more likely to occur.
Are there different types of self-employed income protection policies?
There are three different types of self-employed income protection insurance policies that you can take out. These are:
1. Self-employed illness insurance
This type of self-employed income protection insurance covers you for unexpected illnesses, and there are a few options to choose from. For example, you can arrange to have your income protected if you have a short-term illness. Or, you could opt for a policy that protects you for more serious illnesses that mean you can’t work. Alternatively, you can arrange a lesser cover that won’t replace your income but will give you the equivalent of statutory sick pay.
2. Self-employed injury insurance
This type of insurance pays out when you injure yourself to an extent that means you can no longer work. As with self-employed illness insurance, you can choose a more extensive policy that will cover your income or lesser coverage that will give you a statutory payment.
3. Self-employed illness and injury insurance
This type of insurance is a mixture of the two above and covers you in instances of illness and injury. However, it should be noted that the terms of your policy will depend on the provider you go with.
Self-employed income protection insurance: Do you need a health check to qualify for it?
Depending on the insurance provider, you may have to undergo a health check. This examines your current state of health and can affect the terms that you’re given. For example, if your medical or family history means you are more prone to a specific illness or injury, you may find you’re offered a more expensive policy.
However, some insurance providers don’t require a health check when you apply for self-employed income protection, but they may ask questions about your lifestyle before they give you a quote. This can include questions such as your age, whether or not you’re a smoker (or have been in the last 12 months), and how much exercise you regularly undergo. Depending on your answers to such questions, the terms of your policy may be higher or lower.
What does self-employed income protection not cover?
As with any other relevant life cover, there are a few factors that self-employed income protection won’t cover. This includes an illness or injury that has occurred as a result of alcohol abuse, drug abuse or criminal activity.
If you decide to stop paying your premium, your self-employed income protection policy will no longer cover you. It doesn’t matter how much money you’ve already paid into the policy. Most insurers will also refuse to refund you the money that you have already paid into this pot. It’s very important that you select a policy in the first instance that you can actually afford.
For more information on whether or not you need a health check as part of a self-employed income protection insurance policy, contact a member of our team at WIS Business Protection.