Sickness Cover for Self Employed

Mr._Lion

Hi All,

I am a self employed window cleaner and i am looking for cover should i have an accident or fall (unintentional pun) sick.

Ive looked on the website and the forum stickies and cant find much.

Has anyone got any advice or good links?

Also wondering whether i could bundle it with private medical insurance and save more?

Thanks,

Mr. Lion

New Malden, Surrey

kingstreet

Accident and sickness cover is one option. This pays a monthly benefit in the event of you being unable to work due to one or the other happening. Benefits are usually payable for a period of 12 or 24 months.

The monthly benefit and the waiting period before benefits start determines the premiums.

This cover is underwritten at point of claim, which can often result in a claim being declined for what seems a spurious reason.

Permanent health insurance is another option. This provides a monthly benefit when unable to work due to accident or illness.

Cheaper plans may only pay out if you are unable to carry out three or four daily work tasks. The better ones pay out if you are unable to follow your own occupation. Again, there is a waiting period which means lower premiums for those who defer payment for longer. The benefit is paid until you are fit enough to work, or the end of the policy term, whichever is the shorter.

A policy written to retirement age could pay until then if you were seriously ill, or injured.

Premiums are based on the amount of benefit, your occupation and the chosen waiting period.

Private medical insurance is a completely separate issue. Linking them together will not make any difference to the costs of either.

Speak to an IFA about the best option for your needs.

Mr._Lion

Thanks for the info, very helpful.

Are there any guidelines for selecting an IFA? - or does the fact they are independant mean they are impartial and so you should just choose a local company?

Cheers,

Mr. Lion

kingstreet

Some have specialities, but most should offer advice on protection as standard;-

https://www.unbiased.co.uk

They have the whole market to go at. Avoid advisers tied tom one insurer.

Switch off the "website/email only" option to get a full list for your area, not just the paid-for adverts.

Ask friends and relatives for a recommendation too.

InsideInsurance

Mr._Lion wrote: »

Are there any guidelines for selecting an IFA? - or does the fact they are independant mean they are impartial and so you should just choose a local company?

If they are a true IFA then they should all be impartial/ open and be able to access the whole market. Of cause just because someone is impartial doesnt mean they are good at their job or know the right people to talk to etc.

If you are fit and healthy most IFAs should be able to do a perfectly good job. If you have some forms of pre-existing conditions or illnesses in the last few years then you are possibly better at looking for a more specialist IFA or a Protection Broker who may have more experience dealing with difficult cases.

For my PHI quotes I had a standard IFA who received flat declines from everyone, an IFA who said they were specialists in Protection who got me a quote of £210 and a Protection Broker who originally got me a quote of £180 but after the protection IFA retired they renegotiated with the insurer he had dealt with and got the premiums down to £130 on the same terms offered.:T

busiscoming2

My DH has cover with this company. https://policyholders.paymentshield.co.uk/

It was taken out to cover our mortgage payments when we bought our house.

Have been with them for 14years and they have paid out twice, once for sickness and once for redundancy. We have the 30 day waiting period which then pays out from day 1.

They have always been very contactable and helpful.
HTH's

InsideInsurance

PaymentShield offer an ASU product and so it only pays out a maximum of 12 or 24 months plus has a maximum benefit of £2k (which may or may not be a problem).

PHI doesnt cover unemployment but is the "full fat" version and will not cover you for a max of 12 months but instead until the date you stated when you took it out (normally your 65th birthday) and so could be paying you for decades