Income Protection Insurance For The Self-Employed

by | Mar 24, 2023 | Income Protection Insurance

Becoming self-employed is a daunting but exciting milestone for those that go out on their own. They get to do the work they’re happiest doing, on their terms and in the knowledge that any success they achieve can be attributed to their personal sacrifices and hard work. However, there are also notable financial risks that go hand-in-hand with being self-employed. This can place your income and sense of financial security in a volatile position, leading to more than a few sleepless nights. For this reason – and many others besides – it is vital to consider taking out an income protection insurance policy to safeguard your regular earnings.

In this article, we delve into the numerous benefits of securing insurance coverage as a self-employed individual and explore why it should be at the top of your priority list.


Why the self-employed are at serious risk without income protection insurance


One of the most pertinent arguments for obtaining an income protection insurance policy is aimed specifically at the self-employed as a cohort.

In contrast to those with an “employed” status, who may be entitled to a weekly disability allowance of up to €220 should they find themselves unable to work due to illness, injury or disability, those working for themselves are entitled to no such State benefits. They would therefore face losing 100% of their income if the worst were to happen.

This terrifying thought should be enough to make every self-employed person in the country scurry to sign on the dotted line.


Your self-employed success story could be in jeopardy without adequate income protection insurance


If your own business experiences impressive growth, you may quickly begin to earn big money. As a result, many doors will open in terms of where you can live, the car you can drive, how much you can save and how much you can spend with an easy conscience every week.

It is easy to quickly become accustomed to this standard of living if you are enjoying steady success, so if you find yourself out of work for a lengthy period, the quality of life you are used to could be seriously compromised in the absence of relevant insurance cover.

With the potential to insure up to 75% of your earnings through an income protection insurance policy, securing adequate cover is a no-brainer.


Income Protection Insurance For The Self-Employed - ERM Financial Services (2)


40% of your yearly premium can be claimed back


Aside from offering peace of mind, income protection insurance includes a bonus for the self-employed working within the 40% tax bracket. Every professional in this cohort can claim 40% of their premium back each year, meaning you are essentially paying for just 60% of your policy.

This extra benefit will be particularly appreciated when the lump-sum refund lands back in your account after the end of every tax year!


The younger you are, the more you’re set to gain


There are obvious merits to seeking income protection coverage at the earliest point on your self-employment journey. Namely, the younger you are, the lower your starting premium will be.

It stands to reason that the earlier in life you take out such a policy, the fitter and healthier you are likely to be and for this reason, income protection insurance premiums will be lower for younger parties. What’s more, they can automatically be adjusted and increased as you get older and begin to earn more through your business, without you having to worry about being put through the wringer in terms of endless questions and paperwork.


Get covered today with an income protection insurance policy from ERM Financial Services


With over 30 years of experience providing insurance expertise, advice and competitive quotes, ERM Financial Services are best placed to secure an income protection insurance policy that is tailored to your unique needs and circumstances.

Our tight-knit team of brokers are on hand to share their expert knowledge and advice as they seek out the best deal for you.

Protect your income today and for the rest of your life – get in touch with us today to arrange your free consultation, and make sure to also check out all our latest news and helpful resources.