Being self-employed can be a rewarding and fulfilling career choice, allowing freedom to work to your terms and pursuing passions. However, it also comes with its challenges, one being financial insecurity. Unlike those working within a company, if you’re self-employed you are responsible for your own financial stability. This means taking the necessary steps to protect yourselves from unexpected events.
While it may seem like an added expense, the cost of financial security is a small price to pay for the security it provides. Most of us don’t think twice when it comes to protecting our vehicles or mobiles phones and pets so why not do the same when it comes to your source of income. Here are some ways you can protect yourself if you’re self-employed:
Income Protection
Being self-employed means your income is directly tied to your ability to work. This means if you’re unable to work due to illness or injury you could suffer significant loss of pay. Income protection pays out a regular tax-free income, on a short or long-term basis, to cover expenses such as your rent or mortgage, bills and other living costs if you are unable to work.
This valuable insurance could help reduce stress, prevent your family suffering financial hardship and give you the breathing space to help you get back on your feet when you most need it.
Critical Illness Cover
If you were to be diagnosed with a serious illness such as heart disease, it would have a significant impact on your ability to work. Critical illness cover usually pays out a tax-free lump sum if you’re diagnosed with a serious illness covered by your policy. These usually include, cancers, heart attacks and strokes.
Life Insurance
If you were to pass away unexpectedly, your family could be left in a difficult financial situation. Life insurance pays out either a lump sum or regular payments on your death, giving your dependants financial support after you’re gone. This can help them to cover expenses such as funeral costs, mortgages, bills and provide them with financial security during a difficult time.
Business Insurance
Finally, not forgetting business protection, Relevant life, Key person and loan protection or shareholder protection are all options available to cater for a host of business needs. Be it tax effeciency or to protect the stability of the companies future, there are some great solutions available across the market.
If you’d like advice on how to protect your finances or you’d like to review your protection needs, please get in touch.
Trusted mortgage & Protection Adviser
I am Tim Smart - Independent Mortgage and Protection Advisor. As a seasoned professional in the…
