09 Mar 2015

A question about : insurance against injury or illness?

Hi all,

I'm currently in the process of getting rid of my employment with a business I work for and getting into self employment full time - I was just wondering, what is there out there to help protect the self employed?

I run a martial arts class so it's highly physical work & my concern is that once I'm into full self employment, if I have a serious accident such as a dislocation or fracture / break I'll be out of work.

Is there any insurance policies out there (and what are they called?) that protect you against this sort of problem?

Obviously don't plan on going and breaking a leg on purpose but there's always gonna be a risk of injury and I have 40 years to go yet before I can sit back! (at least until they extend retirement to 75 or 85.. wouldn't surprise me).

If anyone has been down this road and can give me some information to work with going forwards I appreciate your input

Kind Regards,
Nathan Webb

Best answers:

  • The "Top of the Range" solution if available to your occupation would be Permanent Heath Insurance - this pays a replacement income should you be off work due to illness or injury.
    You have to be off work for a certain time before it will pay out (known as the deferred period) and this can typically vary from 4 weeks to a year, the longer you can wait for a replacement income the lower the cost.
    The income is potentially payable until your retirement age and can be either level or increasing - the later the age the policy is written to the higher the cost and an increasing payment plan also costs more.
    The income benefit is paid tax free but there is an overall maximum benefit that can be paid of around 60% of your normal income - this restriction can be problematic where you have only just started self employment.
    Alternatively you might look at a PPI type plan (though it wont be called that now)/Accident and Sickness cover which pays a replacement income for only one or two years.
    Best thing to do is find a good IFA/Broker and discuss your requirements with them - just remember no insurer is going to give you cover for a couple of weeks off work with a sprain or flu.
  • cheers Nearlyold sorta helps! and I'm not really worried about 1 or 2 weeks off as I have a business partner that could probably help me out on the occasional week - I'm more concerned about a break or something really serious happening!
  • Or you could go for a company that doesnt spam forums
  • There are lots of options out there for the type of cover you are looking for. however you may be limited because of your profession.
    Some insurers may consider a martial arts teacher a high risk profession. It depends on the nature of your day-to day role.
    On a different note, if you are keen on fitness and health then Vitality Life would be the best way to go. with their Vitality programme you can get loads of discounts and rewards for being fit and healthy including discounts on your monthly premiums.