National Insurance calculator

Could your self-employed clients use the difference in National Insurance contributions to fund a protection plan?
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If a client is self-employed, they won't be able to rely on common employer benefits such as death-in-service cover or sick pay.

This means that without an additional plan in place, they and their family could face financial difficulty if they were to die or were unable to work due to illness or injury.

However, self-employed clients' National Insurance contributions differ from employed clients - and the amount they pay is usually less. So, have they thought about using the difference to fund the protection they need to give themselves the benefits many employed clients take for granted?

For example, if a client's annual income or profit is £50,000, they're likely to pay about £987.78 less in NI contributions than an employee each year. For less than this they could take out £465,000 of Life Cover and a monthly Income Protection benefit of £2,416.*

And if their business is set up as a limited company, taking out a Relevant Life Plan could provide further tax savings.

Enter your self-employed client's details below for an estimate of how much less National Insurance they might pay.

* Example quote is based on a 40-year-old non-smoker. Plan is based on guaranteed rates and a term of 25 years. Income Protection is based on deferred period of four weeks and cover payment period of two years. Annual premium is £985.31 and includes Wavier of Premium (Sickness), a £2.60 plan charge, and is correct as at 9 November 2018.

Enter your client's details



Annual class 1 National Insurance**


Class 2 and 4 National Insurance**
Self-employed voluntary NI contributions**

Difference if self-employed

Including Class 3 voluntary contributions the difference is:
per annum

If your client doesn't pay Class 3 voluntary contributions the difference is:

per annum

** These figures are based on the HMRC 2019/20 National Insurance rates

If your client's value is negative they don't pay any less National Insurance than an employed worker

This information is based on our current understanding of law and HM Revenue & Customs practice for the tax year 2019/20. It may be affected by future changes and individual circumstances.

Want more information?

See all the features of our Income Protection, or get a quote and apply for cover.

Last updated: 23 May 2019

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The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The firm is on the Financial Services Register, registration number 117672. It provides life assurance and pensions. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL.