As a Contractor you enjoy many of the perks of being your own boss, but it is also important to avoid the pitfalls that come from leaving permanent employment. Your income is reliant on your ability to get on site tomorrow so an accident or illness can really set you back financially.
If you are unable to work there is little by way of employee sick pay to rely on but Income protection (also known as Permanent health insurance or PHI) can bridge the gap and help to cover your expenses until you are back on your feet again.
What is income protection?
Our business partners ContractorFinancials offer income protection plans that are tailored to your needs as a contractor. A typical plan:
- Will pay a tax free monthly income, either immediately or after a pre-arranged period of illness (e.g. 1 month) and will continue until you recover or reach your retirement age.
- Provides the peace of mind that you can maintain your lifestyle and protect your family should you be unable to work.
The advisers at ContractorFinancials understand your unique needs as a contractor and will ensure that they take key factors into consideration when advising you. They will consider the way you are paid, market instability, employment status and whether you work abroad.
Income protection plans for contractors should guarantee the following
- The plan should be suitable for short term contract workers and cover both salary and any future dividends in case your employment status changes.
- The plan should cover you for the job that you are doing now so that the insurer cannot say you are fit enough to do a menial role and refuse to pay.
- Premiums should be ‘guaranteed’ rather than ‘reviewable’ so that you can be confident your costs can’t increase dramatically.
- The minimum number of exclusions should apply so that you can be confident of making a successful claim if ill.
Contractor Financials are Independent Financial Advisors so they are able to search the whole of the market to find the best cover for your needs. They only work with insurers that have a good history of paying claims and offer affordable cover for the duration of your time contracting.
For more detailed information and a quotation based on your needs please call 0845 062 8888 or email CPS@contractorfinancials.com
Financial advice is given by ContractorFinancials, which is a trading name of Contractor Financials Ltd and is regulated and authorised by the Financial Services Authority.