Self employed - what income protection insurance should I have?

RS-Eleven

I run a small shop employing one member of staff and feel I ought to have some kind of income protection insurance as if I sufferred a broken limb or a major illness i am basically up !!!! creek without a paddle. I would have to employ someone else to cover my shifts and there then wouldn't enough profit left in the business to also pay myself.

What type of insurance do I need and who are the cheapest providers?

Thanks for your help

kingstreet

Permanent health insurance.

It pays a tax-free monthly benefit following a pre-set waiting period, until you are fit enough to return to work, or the end of the policy term, whichever is shorter.

Choose "own occupation" version to ensure your chances of a payout are maximised in the event of illness or disability. Avoid the cheaper plans and their suited occupation or work tasks which may mean you miss out because you can hold a pen, use a keyboard etc.

The waiting period is a way of reducing the cost - the longer the wait, the lower the premium, but look at the length of time your savings would last, for example one to three months.

Providers? Depends on occupation, smoker status, age etc. An IFA or protection specialist will be able to talk to you about the mainstream providers and their plans and the specialist friendly societies who operate in this market.

Not a product well-suited to the aggregators, so they tend to shy away from it.

dunstonh

What type of insurance do I need and who are the cheapest providers?

The cheap plans are dire. Do you want an effective plan or a cheap plan that doesn't pay out when you need it because it has so many exclusions that allowed it to be cheaper?

RS-Eleven

I want an effective policy for the best possible price...


Isn't health insurance for private care in the event of an accident/illness or is that "private medical insurance"?


Thanks again for the replies.

kingstreet

Private medical insurance means you can have your ingrowing toenail done tomorrow, rather than waiting for an NHS hospital appointment.

Permanent health insurance is the best form of income protection available.

InsideInsurance

RS-Eleven wrote: »

Isn't health insurance for private care in the event of an accident/ illness or is that "private medical insurance"?

Thats PMI, PHI is not the best named product in the world

The cheap alternative is AS (or ASU) which is otherwise known as PPI. It only pays out for 12 months (a few do 24) with no options to cover pre-existing conditions etc

Obviously for your broken leg etc type thing then both will be fit for your needs but if you get a more serious illness then AS stops after 12 months whereas PHI will continue to pay until you agreed date (normally your 65th birthday)