Does anyone have insurance for being self employed?

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rachael204

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As it says - I was thinking the other about getting some personal insurance.

I already have insurance to perform treatments and the public liability insurance.

Seeing as I am my business, what would I do financially if I fell seriously ill, had an accident and couldn't work (broken arm etc) ?

I do try and keep a buffer of money in my business account but there is always something that I need to buy!

As I insure every other aspect of my life (car, house, pets, phone etc) it seems foolish to not insure the business side of things!

Anyone do this, thought of doing this or have any recommendations?

Thanks in advance!

Rachael xx
 
I think what you are talking about is PHI (Permanent Health Insurance) aka IP (Income Protection.) I used to work in insurance.

If you are worried then maybe you should get some quotes from an Independent Financial Adviser, but I can tell you it is a fairly expensive insurance with lots of options and caveats.

You need to choose a deferred period. This is the amount of time that has to elapse before the insurance pays out, for instance, 4, 13, 26, 52 weeks, the idea being, if you have a policy with a 13 week deferred period you should have enough savings to live on for the first 13 weeks of your incapacity. Obviously the shorter the deferred period, the more expensive the policy.

You can also choose to have your benefit paid level or increasing, again this makes a difference to the premium. And you can have premiums that are paid level throughout the plan, or increasing. It's actually quite complicated.

You also need to choose an end date, so to speak, for instance, age 60 or 65.

You can also only insure a certain proportion of your earnings, less state invalidity benefit, and your income has to be proven in the event of a claim.

I personally don't have it. I think if you are long term sick, and I mean long term, then, you would have to make some very big lifestyle changes, possible becoming dependent on someone else, maybe parents, or a partner.

I know a girl who has been on long term sick for probably the best part of ten years and she doesn't have parents or a partner and she found someone to lodge with who charges her below market rent for her room and she literally lives on £20 pw.
 
thank you so much for your reply - lots to think about! xx
 

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