The tricky thing about it for the self-employed is obtaining a level of insurance that reflects your actual income. Basically, there are two types of income protection insurance—indemnity and agreed value. The lower cost of indemnity cover can be tempting, but be aware that to be paid out the full benefit amount under your policy, you must be able to prove at the time of claim that the benefit amount does not exceed 75% of your income.
This can be significant for you, being self-employed. If a bad period for the business precedes your claim, you may only receive a percentage of the benefit to which you thought you would be entitled. For more information, refer to our in-detail articles on income protection insurance and the self-employed; for now, just understand that a careful consideration of the terms of your cover is necessary to ensure it is right for you.
More information about income protection for the self employed can be found here.
If you’ve made it this far, congratulations. Taking the time to properly understand the elements of your insurance policy can not only save you money by helping you to select an efficient policy in the first place, but can ensure that you can fully rely on your policy when it is most crucial – at claim time.
An advisor is a recommended element of this process. Not only will an advisor recommend a policy that is optimally suited to your specific needs, any good company will stand by you throughout the claims process. At Curo Financial Services, we handle the entirety of each claim for our clients, to take the stress and difficulty out of what can be a trying time. We also leverage long-standing relationships with insurers that we have forged over the years to ensure that our clients receive the best outcome from their claim that is possible.
General Advice Disclaimer
General advice warning: The advice provided is general advice only and in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.