Self-employed life insurance

Becoming self-employed for the first time can offer a lot of benefits – not least the freedom to work where you want, when you want, and for who you want.

However, making the switch to self-employment also means taking on new responsibilities and losing some benefits you may have taken for granted up to now – sick pay, maternity leave, paid holidays, and death-in-service benefits.

As your own boss with new responsibilities, you may want to think about the types of financial protection you need.

What types of insurance should you consider?

When taking the step into freelancing, consulting or contractor work, there are some types of insurance you may want to consider, for example - life insurance, critical illness cover and income protection insurance. Each of these offers different types of protection and pays out under different circumstances. 

Please be aware that life insurance is not a savings or investment product and has no cash value unless a valid claim is made.

Do you need self-employed life insurance?

As an employee, you may have had death-in-service benefit provided by your employer, which you’ll have lost once you became self-employed, so if you have a family or dependents who rely on you financially - you may want to make sure you still have the life insurance you need.

Our Life Insurance can help minimise the financial impact on your loved ones if you die during the length of your policy, helping to give you peace of mind that your family’s way of life is protected should the worst happen. Find out about our Life Insurance.

We also offer a Decreasing Life Insurance policy which is designed specifically to help protect a repayment mortgage, as the amount of cover will reduce roughly in line with the way a repayment mortgage decreases. You can find out more. Find out more about decreasing life insurance.

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Should you consider Critical Illness Cover?

Critical Illness Cover can be added for an extra cost when you take out Life Insurance or Decreasing Life Insurance. It could pay out a cash sum if you’re diagnosed with, or undergo a medical procedure for one of the specified critical illness that we cover during the length of your policy, and you survive for 14 days from diagnosis.

Find out about Critical Illness Cover.

Is it worth taking out Income Protection Insurance?

As you will no longer enjoy the benefit of sick pay, what will happen if a long-term illness or injury means you’re unable to work, resulting in a loss of earnings?

Income Protection Benefit could provide regular monthly payments until you can restart work, reach retirement age, die, or your policy ends.

Income Protection Benefit is available through our team of financial advisers. You can find out more about Income Protection Benefit.