Contractor Advice UK offers invaluable insights into contractor income protection, ensuring your financial security during unexpected times. Discover the importance of Contractor Income Protection and get expert advice to safeguard your income and peace of mind. Don't leave your financial future to chance; rely on our guidance and resources to protect your livelihood.
Income Protection -basic considerations for contractors and directors
Do you need UK income protection insurance?
So, do you need income protection insurance? Well, consider how you would financially cope if you were unable to work for an extended period of time. Consequently, without contractor income protection insurance, how long would your savings really last?
Most limited company contractors set aside sufficient savings to cover lean periods and expenses for a few months. However, have you considered the financial impact if you were unable to work due to a long-term illness that lasted six months or even six years?
Now let’s consider who relies on you financially. Undoubtedly, this will include your family, any children or employees.
You will receive part of your taxable income if you are unable to work when you are ill or injured due to an accident. Certainly, the income is usually between 50% and 70% of how much you pay yourself .Premium Guaranteed , what you pay each month for your policy will not change even if you claim and then go back to work. Furthermore, you do not pay while you claim either. Continued support The policy will pay out until your medical condition is such that you are able to work again. Therefore, if you cannot go back to work, the policy will continue to pay out until you either retire, pass away or the policy term ends.
