INCOME PROTECTION

Acontractorsworld.com is here to provide IT professionals with free impartial advice; we intend to give the best possible advice at cut through any unnecessary areas to allow you to choose the best Insurance Protection Policy for your self.

As a contractor if you are unable to conduct your day-to-day work due to ill health short term or long term, you will lose income, as you are your own boss.

Income Protection insurance can be given by monthly premiums that are worked out depending on your situation, in return you would receive a monthly payment after the waiting period is over which should support you financially and allow you to continue living your life.

If premiums are paid via your company they can be classed as a legitimate business expense but have no tax benefit which are classed as taxable on your salary as well as National Insurance. Benefits are only tax-free when you pay premiums personally.

CHOOSING AN INSURANCE COMPANY

Choose a repeatable company with good payout record
Check the companies waiting period
Check the claiming method is realistic and simple
Check they do not pay out just on salary

Allows check the company out hourly ask the company representative for any other contractors who have taken an Income Protection policy, asking them what they know about the IT contractors Industry.

CHOOSING A POLICY

Inform the insurance company of the nature of your business
Inform of your present circumstances
Would you like retirement included?
Look at a realistic figure when working out your income protection payout.
Incase of a claim you would not be expected to find work in another occupation

When choosing a policy keep in mind that you may not be working for a long time if you fall ill, if you do add long term illness in your policy, remind the Insurance Company representative to keep in mind inflation when working out your payout.
When choosing a payout be realistic with the end figure as you may not need to take into consideration items that are for entertainment our leisure activities.