10-08-2007
Self-employed advised to take out income protection
Self-employed tradesmen are being urged to take out cover for loss of earnings due to illness.
Income protection plans, which many see as wasted money, are vital to self-employed workers such as tradesmen in case serious illness or injury prevents them from going to work, a Plan Insure advisor said.
Life and pensions advisor Phil Jones commented that insurers are finding that not many self-employed tradesmen are willing to take out this type of business insurance, as they are not aware of the benefits.
He said: "It's just that attitude of 'It'll never happen to me'. People don't consider the fact that it could well happen to them and it does happen to people. It's just always the cost that puts people off."
The maximum amount of income tradesmen can replace through a self-employed insurance plan is usually between 50 and 65 per cent of pre-tax earnings.
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