Self Employed help

kennyboy1000

Hi,

I've looked into some self employed insurtance and indeed have some, however I was after some advice if there is anything available I have missed.

I work as business, and all my income goes into the business account which I draw on for wages. Coming out of the business are numerous expenses that help run the business. Now all of the insurance I can see only pays a % of my drawings, not what goes into the business account. Is there any way to cover the business account so the business expenses can continue to be paid?

Thanks in advance

Ken

InsideInsurance

What sort of insurance are you looking for? ASU?

weighty1_2

Unum have a policy called "essential ability" cover. It's designed to pay out if you are unable to undertake 3 out of 11 activities of daily living. Ordinarily, I would never have recommended this type of plan in the past, however, an associate of mine uses it for situations exactly like yours. Whilst "activities of daily living" claims criteria are usually extremely stringent this is far easier to claim on due to the number of factors they look at.

Because the plan is activity based and not occupationally based it means that even if you can work whilst incapacitated you can still claim on the plan and you can cover yourself up to £25,000 p.a. cover, index linked if necessary. This is the maximum the plan will allow and this is not linked to your earning in any way. It is therefore excellent for new start-ups.

Sounds ideal for your situation (depending on how much cover you need) **general disclaimer - "sounds ideal - but you need to qualified adviser to assess your circumstances blah blah blah"

It's not a commonly used plan in my experience, however, if you try unbiased.co.uk you might be able to find a local IFA who could arrange a plan for you and talk you through the finer details.

kennyboy1000

Yes its ASU I'm after. I'll look into the essential liability. If it pays out in addition to the ASU, its not much cover I'll need, just enough to cover the business expenses each month (premesis rent, utilities etc).