Personal Insurance for the Self-Employed
This article looks at two of the most important types of personal insurance for the self-employed, namely health insurance and income protection.
Self Employed Health Insurance
Arranging adequate health insurance is vital for maintaining a healthy standard of living. It covers us for routine treatments and emergency procedures alike. Many working individuals have their health cover provided for them as part of a group scheme. It this case the employer will arrange for the cover to be provided and will often pay for the associated premiums. Those individuals who are self-employed do not have that luxury and must therefore arrange appropriate cover for themselves. Health insurance is vital to those who are self employed as it allows them to return to work as quickly as possible after suffering an illness or injury. In this sense, self-employed health insurance is a form of business protection as well as personal health protection.
Self Employed Income Protection
Some employers will provide income protection policies for their staff. This type of insurance pays a monthly benefit if the policyholder is off work due to sickness or injury. Those who are employed may also receive generous sick pay should they fall ill. Those individuals who are self-employed do not receive any of these luxuries. The self-employed rely heavily on the income brought in from their business and have very few safety nets to fall back on. Income protection for the self-employed is therefore important to provide financial protection against the risk of sickness or injury preventing them from their work and financial security.
For the reasons stated above, when an individual sets up business on their own it is often the case that income protection and health insurance are the two forms of personal protection insurance arranged first.
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ABOUT THE AUTHOR
Produced by James White of Drewberry Personal Insurance Brokers, specialist providers of information, advice and broking services for self-employed health insurance and self-employed income protection.