To print this article, all you need is to be registered or login on Mondaq.com.
Many adults understand the need for financial resilience and
taking out insurance to protect their incomes in case of sickness
or accident. However, too many self-employed people do not have any
cover to help them should they be unable to work and are
increasingly likely to choose to carry on working despite illness
or injury.
New research has identified that 17% of self-employed
individuals stated they would need to continue working if they
suffered from illness or injury1. Despite this admirable
effort, it is important that those who are ill or injured take time
off for recovery in order to ensure a safe and sustainable working
environment.
Health complications
Taking time off to rest and recover after an illness or injury
can be beneficial in the long run, as it allows workers to return
to work with renewed energy, and improved concentration and
productivity levels. It also helps to reduce the risk of further
health complications or accidents due to fatigue or strain.
Millions of self-employed individuals would be forced to keep
working in the event of an illness or injury, according to the
research. The findings show 60% of self-employed workers would draw
from their savings if they were unable to work for two months, and
only 6% of self-employed workers surveyed have purchased an income
protection product themselves.
Funds could dry up
The data shows that many self-employed individuals rely on their
savings without considering how quickly these funds could dry up,
potentially leaving them unable to pay their rent or mortgage after
a couple of months. One in five self-employed workers said they
would rely on their partner’s income or savings if they were
unable to work.
Worryingly, 19% would struggle to pay their mortgage or rent if
unable to work for two months due to illness or injury, and 11%
would resort to taking out a loan, using an overdraft or credit
cards.
Most suitable policies
Protection and financial resilience are an integral part of
personal financial planning, so it’s important to obtain
professional advice before selecting the most suitable policies.
For many, this can be an overwhelming concept to tackle when
establishing a personal financial plan.
Taking the time to understand the various components involved in
building a resilient financial future is informative and essential
for those looking to protect their assets and wealth. From
understanding the basics of insurance policies to tax regulations
and retirement planning.
Are you and your loved ones protected against life’s
‘what-ifs’?
Protection is about more than simply buying an insurance policy,
it’s about ensuring you are supported financially if you are no
longer able to work or become ill. If you have any concerns or
would like to find out more, please contact us.
Footnote
1. LV= surveyed 4,000 nationally representative UK adults
via an online omnibus conducted by Opinium between 16 August and 1
September 2022.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
POPULAR ARTICLES ON: Insurance from UK
