No Sick Pay? No Problem.
As a freelancer, contractor, or business owner, you don't have employer sick pay to fall back on. Here's how to protect your income and your business.
The Challenge
The Reality of Being Self-Employed
Without Protection
- No work = No income
- Bills still need paying
- Mortgage doesn't wait
- Savings drain quickly
- May need to close business
- Could lose everything you've built
With Protection
- Income continues while you recover
- Bills and mortgage covered
- Focus on getting better
- Business can survive
- Family stays secure
- Peace of mind every day
5 million
Self-employed in the UK
£116.75
Statutory sick pay per week
6 months
Typical recovery from serious illness
1 in 4
Will be off work long-term before retirement
Your Safety Net
Essential Protection for the Self-Employed
Income Protection
Replaces your income if illness or injury stops you working. Pays monthly until you recover or retire.
- Up to 60% of your income
- Pays for any illness or injury
- Claim multiple times
- Tax-deductible as business expense
Typical cost
From £25/month
Critical Illness Cover
Lump sum if diagnosed with serious illness. Pay off debts, fund treatment, or keep business running.
- Tax-free lump sum
- 40+ conditions covered
- Use money however you need
- Combine with life insurance
Typical cost
From £15/month
Life Insurance
Protects your family and business partners if you pass away. Can cover business debts too.
- Tax-free payout
- Cover mortgage and debts
- Protect family's lifestyle
- Key person cover available
Typical cost
From £8/month
Did You Know?
If you're self-employed, income protection premiums are usually tax-deductible as a business expense. This means HMRC effectively subsidises your protection.
If your premium is
£50/mo
Your actual cost could be
£30-40/mo*
*Depending on your tax rate. Speak to your accountant.
Tailored Advice
Protection by Work Type
Freelancers
Income protection is critical – no work means no pay. Consider a short deferred period.
Contractors
Your contracts may have gaps. Ensure your protection covers periods between contracts.
Sole Traders
Your business relies solely on you. Critical illness cover can keep things running.
Ltd Company Directors
Consider key person cover and relevant life policies through your company.
Real Stories
Self-Employed Clients We've Helped
"As a freelance designer, I never thought I'd need protection. Then a cycling accident put me out for 4 months. My income protection paid the mortgage while I recovered."
Tom H.
Freelance Designer
"Running my own plumbing business, my health is everything. The peace of mind knowing I'm covered lets me focus on growing the business."
Dave W.
Sole Trader
Common Questions
Self-Employed Protection FAQs
Can I claim income protection premiums as a business expense?
Yes, if you're self-employed (sole trader or partnership), income protection premiums are usually tax-deductible as a business expense. For limited company directors, it's more complex – speak to your accountant about the best approach.
What's the best deferred period for self-employed people?
It depends on your savings. If you have 3-6 months of expenses saved, a 13-week deferred period offers good value. If cash flow is tighter, consider 4-8 weeks. Remember: shorter deferred periods mean higher premiums.
Do I need life insurance if I'm self-employed with no dependents?
Life insurance is less critical without dependents, but consider if you have business debts, a mortgage, or a business partner who relies on you. Critical illness and income protection are typically more important for single self-employed people.
How do insurers verify my income as self-employed?
Insurers typically use your tax returns, SA302 forms, or accountant's confirmation. Income protection usually covers your net profit rather than turnover. Keep good records – it makes claims faster.
What if my income varies month to month?
Most policies base cover on your average earnings over 1-3 years. Some have 'agreed value' options where you set a fixed amount upfront. We'll help you find a policy that matches your income pattern.
Protect Your Self-Employed Income
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Or email info@apply-wise.co.uk