Income protection (known as Permanent health insurance or PHI) is something that many contractors think about, but often don’t arrange until it’s too late!

What is it & Why Have It?

As a contractor, your income is reliant on your ability to work; there is no permanent employee safety net of a 'sick pay' scheme. Your current lifestyle is totally at risk from the impact of an illness or injury but the good news is that you can replicate these employee benefits with a personally funded income protection policy.

ParasolFinancials Income Protection plan:

  • Ensures you receive a tax-free monthly income after a pre-set period of illness (typically 1, 2 or 3 months).
  • Includes a 1-day waiting period plan for those clients who don’t have savings to tie them over.
  • Offers you peace of mind that if the worst was to happen, you could still provide for your family and maintain your current lifestyle.

Matching the Right Policy for you

As Independent Financial Advisers (IFAs) ParasolFinancials provide advice tailored around the contracting lifestyle, considering key points such as:

  • The way you are paid
  • Potential market instability
  • Changing tax regimes
  • Future changes in employment status 
  • Working abroad

all play a part of how we work for you. (Please read our Initial Disclosure Document which outlines our regulatory status).

ParasolFinancials income protection plans guarantee the following:

  • All plans are suitable for short term contract workers.
  • Cover both current salary and also any future dividends (ie should your employment status change).
  • Cover you on your 'Own' not the cheaper 'Any' occupation basis - you are covered against any illness or injury that stops you from specifically doing the job that you do now and this means the insurer cannot suggest that youre healthy enough to work in the postroom and therefore stop paying benefits.
  • Provides “guaranteed” not “reviewable” premiums –to ensure your contributions remain constant and don’t increase according to insurance market fluctuations.
  • Have as few exclusions as possible which means that when you need to make a claim the insurer pays what is legitimately yours!
  • All plans are with insurers that have excellent claims record of actually meeting their obligations to clients.

For detailed information on your circumstances please fill in details on the Income protection finder and a ParasolFinancials consultant will contact you.