An employee off sick for months may have sick pay, a supportive employer, and colleagues to cover. The self-employed have none of that by default. Income protection is designed to fill exactly that gap, yet it is the cover most often overlooked by the people who need it most.
The details that decide whether it pays
Two policies with similar premiums can behave very differently. The definition of incapacity, whether you are covered for your own occupation or any occupation, matters enormously. So does the deferred period before payments begin, and how the insurer assesses income for someone whose earnings vary year to year.
Matching cover to how you actually earn
For company directors, the question is often whether to hold cover personally or through the business, and how to evidence income built from salary, dividends and retained profit. Getting the structure right at the outset avoids disputes at the very moment you would least want one.
This article is for information only and does not constitute financial advice. Policy terms, definitions and exclusions vary between insurers. Please read the policy documentation carefully or speak to an adviser.