In simple terms yes! But there are some key things to consider when selecting your policy.
Why you need Income Protection if you’re self-employed
When you’re self-employed, you’ll need to consider what will happen if you can’t work because of illness or injury. As you’re working for yourself you won’t get statutory sick pay from your employer, although you might qualify for government benefits. This makes operating self-employed a risky activity if you don’t have some form of insurance or significant savings.
Finding Self Employed Income Protection
Being self-employed may affect the premium (price) you pay on an income protection policy. However, in most cases, it will not change how your policy works. Just like any other person, your policy will still pay a monthly benefit if you’re left unable to work due to injury or illness.
Occupation also plays a part in how much you’ll pay. For example, if you perform some form of labor that is deemed high-risk, your premium will likely be higher.
Is Self Employed Income Protection Tax-Deductible
No. Whether you’re self-employed or not, all payouts from traditional income protection are tax-free. This is because you already pay tax on your month to month income, & pay tax on the purchase of the policy itself.