Can you recommend Income protection insurance for self employed?

putacoininthefountain

I'm looking for some income protection insurance as I am newly self-employed. Can anyone recommend a company or policy?

Many thanks

Lou

InsideInsurance

Income Protection these days covers two different products, first is a budget product called ASU (aka PPI) and only pays out a maximum of 12 months or a few do 24 months.

the full fat version is called PHI and pays out as long as you need it up to the specified date, normally your 65th birthday.

ASU is sold unadvised and is not underwritten, the aggregators like confused.com will enable you to compare prices. Not all will cover the Unemployment aspect for the self employed if you are truly a sole trader

PHI is almost exclusively sold via IFAs and Protection Brokers and your best off getting recommendations of a local company and having a chat with them

roonaldo

InsideInsurance wrote: »

Not all will cover the Unemployment aspect for the self employed if you are truly a sole trader

This is what I was going to say, I think on websites like confused you can just look for accident and sickness.

kingstreet

If looking at PHI, ensure you get "own occupation" cover which pays out if you are unable to do the essential duties of your own job.

The cheaper options will use suited, or work tasks, which may see you denied a payout if you can hold a pen, use a keyboard etc.

Some of the smaller specialist providers offer own occupation cover on occupations the bigger players won't touch on that basis.

Typically, a PHI claim lasts six to seven years, so short-term A&S cover may leave you with no income after a year where the comprehensive cover can run until you retire.

InsideInsurance

roonaldo wrote: »

This is what I was going to say, I think on websites like confused you can just look for accident and sickness.

You can look for AS, U or ASU from memory but the price difference between the three is not that great, certainly ASU is a lot less than buying separate AS and U policies.

If Unemployment cover is important then it'd be sensible for the OP to hunt out one that has favourable enough terms to the self employed person - plus you'd need to check you are actually self employed or if you are an employee of your own limited company etc.