Self-employed people in the UK are advised to take out some form of income protection to insure them in case illness or injury stops them from working.
According to an independent life and pensions financial adviser, income protection plans mean that those who are self-employed would not be "hit so hard" if they were prevented from earning for a period of time.
Phil Jones claims that many people are deterred from taking out income protection plans because they see them as "wasted money" if they do not claim. However, he stressed that it is important to have some form of cover in place if you are self-employed as no-one knows "what's going to happen around the corner".
"Especially with self-employed people, if they're going to be off work for a substantial amount of time and they've got no other earnings coming in, they're just going to get hit so hard," he explained.
People employed by a company tend to have income protection cover supplied by their employer if they suffer a disability or long-term illness that prevents them from working for a long period of time. Those considering taking out income protection cover should seek financial advice before doing so to ensure they select the right product.
