PPI for Self-Employed

dyl003

Around a year ago I became self employed setting up my own business. I was wondering if there were good insurance policies that will pay a lump sum each month if you was to have an accident or become ill etc?
Many years ago when employed I had an insurance policy that payed out a lump sum each month for the 12 months I was off work due to a serious road accident so would like something similar.
Just not sure what is available and by who so any suggestions for a self employed person would be appreciated.

Thanks

kingstreet

It's called permanent health insurance.

It pays a monthly income benefit tax free if you are unable to work due to illness or disability following an initial waiting period choosen at the outset.

You can run the plan for a specific period, or until you retire.

This is a product best purchased via an IFA. Ask friends and relatives for a recommendation. Failing that, use https://www.unbiased.co.uk, remembering to turn off the "website/email only" option so you get a full list for your area, not just the paid-for adverts.

InsideInsurance

What you are talking about is Income Protection.

It comes in two flavours:

ASU (though most wont cover the self employed for unemployment so it is just AS) - this is PPI but not attached to a loan/ credit card etc. This is a budget product, typically low limits and only pays out for a max of 1 or 2 years

PHI - this is the full fat product that pays out until you are fit to return to work or until your nominated age (normally your planned retirement age).

One of the IFA/ Protection Brokers will come along shortly and point out that the average claim for one insurer is something like 8 years which is why PHI is so much better than ASU.

PHI is fully underwritten and so premiums can vary massively depending on your age, weight, smoking status, pre-existing conditions etc.

ACG

Inside insurance is right...i think its 7 years but you get the idea its more than the 1 or 2 years you would get with ASU/PPI.

There are a few things to note, its based on your income so if your income drops just prior to an accident you might not get as much as you were expecting, likewise if your income increases you may not get the maximum you can if your not reviewing your cover often enough.

I think even the govt avg claim for sick benefit is about 6-7 years so its well worth thinking about.

A Mortgage or financial advisor will be able to help.