Being self-employed means you have established yourself as being financially independent from an employer and the four walls of an office. Working for yourself has its perks, but what happens if you can no longer work because of an accident or an illness?
Unfortunately, you don’t have sick benefits because you don’t have an employee, so you would have to rely on what you yourself have set up for unforeseen circumstances like being sick. Although you may be entitled to state benefits, it may not be enough to keep your finances in order and your business going in your absence.
Fortunately, you can consider many types of insurance to take care of you if you are unable to work involuntarily. Here are some of the types you can get for security:
Private Medical Insurance
PMI can take care of your medical expenses if you develop p short-term illness or disability due to an accident. Yes, there is the National Health Service that can do that as well, but it may take some time before you can get treated, and if you are running your own business, you cannot afford a lot of sick days because it would mean a great loss of money for you.
Critical Illness Insurance
If a life-threatening disease hits you, critical illness insurance can pay a lump sum amount that you can use for your medical care and other things you need to put in order. A critical illness may prevent you from going back to the normal operations of your business, so a payout would be very useful at this point.
Life Insurance
If you work for yourself, that could also mean that there are people who are financially dependent on you, and if you pass away, your business may go downhill as well. Take care of your family or loved ones by putting in place a life insurance policy that can help them stay financially stable even when you’re gone.
Income Protection Insurance
This is a long-term insurance that pays out a portion of your after-tax income in case you fall ill or get injured and cannot work. This ensures that your household bills will remain in order until your normal retirement age.
There are certain considerations in making your insurance premiums less costly. Mull over your finances to determine whether you have enough savings to get by for a certain period of time. These insurances tend to be cheaper if you can wait a longer time before the payouts begin. You can list down the things that you think you might need, like paying for your debts, mortgage, or utilities in case something grave happens, and see which insurance you can get the most out of. Remember that the only one you can depend on when you are self-employed is yourself. The government may extend some assistance through state benefits, but that will not be enough for you to maintain your current living conditions.