Self-Employed? What Happens If You Can't Work?

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Self-employed means no sick pay if you can't work. Income Protection fills that gap.

Most self-employed people don't receive sick pay. If you're unable to work due to illness or injury, there may be little or no income coming in.

Income Protection is designed to provide a monthly income if you're unable to work, helping you stay on top of your financial commitments while you recover.

Why Income Protection matters when you're self-employed

Being your own boss comes with freedom and flexibility.

But it also means you're responsible for creating your own financial safety net.

Unlike employees, self-employed workers don't usually qualify for Statutory Sick Pay. If illness or injury prevents you from working, there may be little or no replacement income coming in.

Meanwhile, your financial commitments don't stop:

• Mortgage or rent payments
• Household bills
• Food and living expenses
• Family costs
• Business overheads

Whether you're a sole trader, freelancer, contractor, consultant, tradesperson or business owner, your income typically depends on one thing: your ability to work.

If work stops, income can stop too.

That's exactly the gap Income Protection is designed to help fill.

What is Income Protection?

Income Protection is a type of insurance designed to provide a regular monthly income if you're unable to work because of illness or injury.

Rather than paying a one-off lump sum, it can provide ongoing payments while you're off work and unable to earn.

The benefit is paid directly to you, giving you the flexibility to use the money however you choose.

Whether that's covering household bills, helping with everyday living costs, supporting your family or simply maintaining financial stability while you recover, the choice is yours.

The goal is simple: to help provide a regular income when illness or injury prevents you from working.

Could you afford to stop working tomorrow?

It's an uncomfortable question, but an important one.

If illness or injury meant you couldn't work from tomorrow:

• How long would your savings last?
• Could you keep up with your mortgage or rent?
• Would household bills still be manageable?
• Could your family maintain their current lifestyle?

Many self-employed people spend years protecting and growing their business but never put a plan in place to protect the income that business generates.

Income Protection can help provide that protection.

Designed around self-employed income

Many self-employed people assume Income Protection won't work for them because their income isn't the same every month.

In reality, there are policies designed with self-employed people in mind. Whether you're a sole trader, freelancer, contractor, consultant, tradesperson or business owner, there may be options available that reflect the way you earn your income.

For example, some insurers calculate the level of cover based on your pre-tax profits rather than a fixed salary, making Income Protection suitable for many self-employed people.

As insurers assess self-employed income differently, speaking to a specialist can help you understand your options and find cover that's right for your circumstances.

How much could it cost?

Many people assume Income Protection is expensive.

In reality, cover can often cost less than expected, particularly when compared with the financial impact of being unable to work for months without an income.

The cost will depend on factors such as:

• Your age
• Occupation
• Health
• The amount of cover chosen
• How long you wait before benefits start

An Income Protection specialist can discuss your requirements and provide quotes tailored to your needs.