Don't Let Your Income Get Hurt By A Personal Injury

More and more people are going down the path of self-employment, working as freelancers, doing business from, or going out on their own and starting up their own company. It is becoming a huge attractive prospect for so many of us, which is why the numbers keep growing and growing. However, if you have gone down that path, or are thinking about it, it is crucial you think about your personal insurance options to protect any sudden loss of income. Why? Because you no longer have anyone else to rely on if something was to happen to you, whether that be sickness cover or health insurance or whatever. That’s where we come in. We’re here to help guide you, and explain what insurance you may need.

So let’s discuss personal insurance, in which there are a fair few options you need to know about.

Life Insurance

This is a pretty extreme place to start, but it is worth taking out straight away, you know, just in case. In short, you will pay a small fee each month for life insurance and should anything happen the insurance will pay out a lump sum (or regular payments) to your dependents and/or those in your will. It may well be that you had life insurance as part of your employment package at your old job. However, that ends effective immediately when you leave that employment. This is why you should get private life insurance straight away, especially if you have a family and children as it will serve as a substantial financial parachute should you die.

Income Protection

This is a very useful form of insurance that all self-employed earners should research and consider. It’s main benefit is its long-term status, allowing you to be covered for a set number of years should injury or illness prevent you from being able to work. This insurance is designed to cover and loss of of income should it be required, covering most or all of your after-tax income. Weighing up the risk of small monthly payments against not being able to work for months or years should be a no-brainer. It is worth speaking to a trusted personal injury attorney, as they will be able to tell you what would happen in the case of you falling ill or get injured at work. And remember, peace of mind of invaluable.

Critical Illness

Unlike income protection, this cover is specially geared toward a payout should you be diagnosed with a serious illness named in your policy. This will be an after-tax payout and typically covers illnesses like heart attacks, strokes and specified cancers. What’s more, the payments work in a different fashion too, as they will help ease the financial pressure applied to you since your diagnosis. These can include mortgage payments, debt payments and even home renovations should your illness require such amendments to be made, for example wheelchair access. Once again, it is worth weighing up the pros and cons, but we recommend you speak to a professional who will be able to guide you properly. But as a starting point, consider your lifestyle and any illness that may run in the family.