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Self Employed Income Protection

Income Protection for Self-Employed Workers – Get Expert Quotes Today

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What is Self-Employed Income Protection Insurance?

Being self-employed brings many benefits to individuals, such as the
chance to work to their own schedule and enjoy more flexibility in their
work-life balance.

However, there are some disadvantages of working for yourself as well, including not benefiting from any of the financial perks that come with being in a full-time position. That means you won’t receive any sick-pay if you are unable to work while ill or injured. Plus, if you ever go through a period of little or no work, your income will see a significant cut. These are all reasons why many self-employed workers choose to take out a self employed income protection insurance policy.

If you are ever unable to work because of illness, injury, or any other kind of health-related reason, then your income protection insurance for self employed will take over from your employer to pay you a monthly wage. It will be paid every month and will be completely tax free.

Income Protection for the Self Employed

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How does Income Protection Insurance for the Self Employed Work?

One other thing to think about is whether you would need to find a self-employed income protection insurance plan that also includes cover for general unemployment. If you have this cover and end up unemployed for no fault of your own, then you will be able to claim a payout each month while you are looking for work. One thing to bear in mind is that the requirements for getting this payout is a lot stricter than getting the payout for health reasons. You will need to prove that you were not at fault for becoming unemployed which, in some situations, can be quite tricky to prove.

Common Challenges Self-Employed People Face Without Income Protection

Being self-employed comes with plenty of perks — flexibility, freedom, and the satisfaction of building something on your own terms. But it also means you don’t have the safety net that employees often take for granted.

If you’re unable to work due to illness or injury, there’s no employer sick pay to fall back on. Your income could stop overnight, while the bills keep rolling in. Here’s what that could mean in real terms:

  • Loss of Income: Without a backup, even a short-term illness could leave you without the money you need to cover essentials like rent, mortgage payments, or daily living costs.

  • Strain on Savings: Dipping into your savings might seem like a solution — but how long would they realistically last? You could find yourself eating into money set aside for tax bills, holidays, or future plans.

  • Business Disruption: Many self-employed workers are the heartbeat of their business. If you can’t work, you might not be able to fulfil contracts, keep clients happy, or maintain your professional reputation.

  • Debt Build-Up: Even if your work stops, your financial commitments don’t. Credit cards, loans, and household bills can quickly mount up during a period without income.

  • Emotional and Mental Stress: Financial pressure can take a heavy toll on your mental health, making recovery from an illness or injury even harder.

The reality is, nobody expects to be unable to work—until it happens. Income protection for the self-employed provides a vital financial safety net, giving you peace of mind that your lifestyle and business are protected if life takes an unexpected turn.

How Income Protection Helped One Self-Employed Professional:

Sarah, a freelance graphic designer, broke her wrist in an accident. She was unable to work for over three months, meaning her regular income stopped almost immediately.

Thanks to her income protection policy, Sarah received £2,000 per month while she recovered, allowing her to cover her mortgage, bills, and everyday living expenses without dipping into her savings or taking on debt.

Income protection helped her focus on getting better, not worrying about money.

Why do I need it?

We’ve already mentioned that working as a self-employed individual can be difficult as there is no official sick pay that you will be able to claim if you do fall ill or are injured and are unable to work. So, you can’t reach out to any of your clients for any financial support during these difficult times. However, that isn’t the only reason why you might want to take out this kind of protection. Here are a few other reasons why you might need some income protection.

So, there are a range of different reasons why self-employed individuals might want to take out a policy for some self-employed income protection. Mostly, though, it’s to ensure that they don’t end up in any financial difficulties if they are ever too ill or injured to work. As you can see, for most people who work for themselves, this could be a good call so that you never worry too much about money!

How it works

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Excellent service with easy to understand explanations

Jody was very helpful in explaining the options and I thoroughly recommend his company

We received a wonderful service from My Key Man

We received a wonderful service from mykeyman and will be using them again. The service and product knowledge from team is excellent. Everything was made easy to understand. The price was the best we found too.

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I had a great time working with My Key Man Insurance when I applied for the different insurances they offer. They were able to answer all of my questions quickly and effectively. I will recommend them to my friends and family.

Excellent service with easy to understand explanations

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The standard of service was first class. They kept me up to date with progress on my Relevant Life Policy, followed up promptly following delays caused by my medical practice being slow in compiling reports, and responded instantly and clearly to any questions I had.

We received a wonderful service from My Key Man

We received a wonderful service from mykeyman and will be using them again. The service and product knowledge from team is excellent. Everything was made easy to understand. The price was the best we found too.

Excellent service with easy to understand explanations

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