A simples guide

Compare Self Employed Sickness Insurance

You get to call the shots when you are self-employed. You can choose your clients and your own hours, but there are drawbacks. Nobody pays for your holiday and if you are taken ill then it can leave you facing financial problems.So if you are your own boss, take out self-employed sickness insurance and make sure you are properly covered if the worst was to happen.


Using our price comparison service can help you compare your options and find the right deal for you. For instance, you can get combined policies that cover Accident, Sickness and Unemployment (ASU) all on one policy, which might make finding all the cover you need in one place easier.


Just make sure you look beyond the basic life premium price and compare the features and terms and conditions so you know you are covered for every eventuality.

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What is self-employed sickness insurance?

Quite simply, if you have to take time off work with an illness then your self-employed income protection will provide you with a tax-free payment that is agreed at the start.

It’s stressful enough to be ill, you don’t need to worry about your expenses piling up when you can’t go to work. With sickness insurance for self-employed people, you know that if you have to take a number of short breaks or even a long time off due to illness, you can still cover your bills.

Unfortunately, you might not be able to access standard policies that are designed for full-time employees, but there is a wealth of sickness insurance for self-employed people.  Get the right policy and it could cover you for all manner of things you may not have to consider yet such as stress, back conditions and even cancer.

Some policies will even cover you right through until you retire, which could make a huge difference to your quality of life should you need to claim. 

self employed sickness insurance

How does self-employed sickness insurance work?

When understanding how the policy works, it’s easiest to explain using an example scenario. Take Jason for example, he is an HR consultant who makes a hefty £100,000 a year gross income and £50,000 in dividends, lucky guy. He used our comparison service to find a deal that suited him and took out self-employed sickness insurance for a little more than 50% of his income covering him for a £75,000 lump sum, or £6,250 a month.

His earnings increased the following year, but two years later he is diagnosed with cancer. Jason is out of work for four years, but he is safe in the knowledge that the £6,250, the maximum amount agreed when he took out the policy, is available. If he earned less than the £150,000 the policy was agreed on at the time of the diagnosis, then he would be paid a lesser amount based on his actual earnings.

Jason selected a deferred period of 6 months and received his first payment from the insurer of £6,250 at the end of the 7th month. Over the course of 4 years then, Jason received 42 monthly payments of £6,250 an accumulated total of £262,500. This allowed him to cover his financial obligations and return to work when he was physically fit.

How can I qualify for self-employed insurance?

Your profession can give you challenges when it comes to getting self-employed sickness insurance. Office-based workers can usually qualify, but self-employed people working in the arts may find it difficult to get cover. So that means writers, artists and musicians should take extra care understanding policy terms as they simply may not qualify.

Manual workers face a different set of criteria and the value of your premium, the level of cover and even the ability to get a policy in the first place depend on the level of risk associated with your job. Soldiers, firefighters and oil rig workers, for instance, might have more trouble getting a policy. Some providers may also ask you to take a medical and accept certain restrictions. If you have a pre-existing condition, for instance, this can be excluded from the cover.

You should be aware that simply being ruled out of working in your current job might not be enough to qualify for the pay-out. If you are medically capable of finding other work, you may have to consider a career change.

Of course self-employed sickness insurance is still a sound investment as you simply don’t know what the future might hold. So make sure you have the best possible cover by using our comparison service to compare your options and prices.

sick pay for self employed

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