Why is Income Protection So Important for the Self-employed?

Thought you might be interested in the article Why is Income Protection So Important for the Self-employed and thought I’d share a few points with you here. I’ve found some relevant information here so if I find more, I’ll be sure to pass it on.

What is considered income for self-employed workers?

Most insurance companies recognise the income for self-employed workers as the income generated by their business or practice through their own personal exertion or activities. This is the case for a self-employed worker, a working director or partner in a partnership. Income does not include:

• Dividends
• Interest
• Rental Income
• Commission
• Revenue from sale of proceeds or assets

How should you structure your premiums?

As well as deciding on agreed or indemnity value cover, another important consideration is whether to pay stepped or level premiums.

• Stepped premiums. Stepped premiums start out cheaper (calculated on your age at each policy anniversary date) and get progressively more expensive as you get older.
• Level premiums. Level premiums are more expensive in the beginning, but because they remain fixed, they become more affordable as time passes (especially after 8 years or more).

If you want to keep reading with any of that content, by all means, click here. Please feel free to contact me on (07) 3243 0000 or email at [email protected] for any thoughts and perspectives.

Thanks,

Mark