For anyone who’s self-employed their income is the most valuable thing they have – although they may not realise it.
Being your own boss is satisfying. It means you can make your own decisions and reap the rewards. But do your self-employed clients know what would happen if they’re unable to work through illness or injury? How would they pay their bills without an income?
Relying on savings and State benefits are options but they can only last so long - savings will eventually run out and benefits are limited. It makes sense then to protect your client’s income to help make ends meet.
Income Protection is available through our Menu Plans and has a range of benefits. Your self-employed clients can protect up to 65% of the first £15,000 of their pre-tax earnings, plus 55% of the remainder, up to a maximum of £250,000 a year. They can also include certain regular fixed overheads when calculating their maximum sum assured.
Income Protection can be combined with other benefits, such as Life Cover so you can tailor a plan to suit the individual needs and budgets of your clients. Even a little bit of the right cover can help your self-employed clients protect themselves and their income.
Royal London - we’ve got it covered.
Your self-employed clients are likely to insure their home or car and may even have life insurance, so why don’t they insure their income? Their lifestyle could depend on it. How would they be able to provide for themselves and their family if they’re unable to work?
By using a menu approach, you can help your self-employed clients…
As an example, we’ve taken a single self-employed landscape gardener who made £40,000 last year. If they take out Income Protection through our Personal Menu Plan to provide an income of £23,500 a year for a 25 year term, the monthly premium would be £23.80* including Waiver of Premium.
This would provide an income of £1,958.33 a month. So if they fall ill or get injured and meet our definition of incapacitated they’ll be able to rely on this income to cover the rent and other household bills as well as help to maintain a standard of living.
They could also add Life Cover to their plan either now or at a later date. So if they purchase a property and need to protect the mortgage they can do that within the same plan. If they were to add Life Cover to their Personal Menu Plan, they’d be able to get £250,000 worth of Life Cover over a 25 year term for just another £9.00 a month including Waiver of Premium.
Having this cover in place will protect what matters most – their ability to bring in an income when they need it. It can help them to pay the mortgage or rent, household bills, loan repayments and more. It’ll also help relieve stress and remove the need to return to work before they’re ready to.
Ultimately, they can insure their lifestyle by protecting what matters most – themselves.
These are obviously just suggestions - you can create your own package from any of our covers, tailoring them to suit your client’s needs and budget.
Fracture cover and hospitalisation payment are automatically included plus they don’t affect the main Income Protection benefit. So your clients won’t have to wait for the chosen deferred period to end before making a claim.
Protect your clients for up to 65% of the first £15,000 of their pre-tax earnings, plus 55% of the remainder, up to a maximum of £250,000 a year. Plus self-employed clients can include fixed overheads when calculating their maximum sum assured.
* This example is for illustration purposes and does not represent actual customers. Quotes are based on a client who’s a non-smoker and aged 32 next birthday. Plan term is 25 years with a deferred period of 13 weeks and cover payment period of one year. Premiums are correct as at 24 October 2017.