New research from LV has highlighted the fact that the overwhelming majority of self employed people in the UK have no formal arrangements in place to protect their income in the event that they are unable to work, either by making provisions with regular savings or an appropriate income protection insurance policy.
The alarming findings of the research have led LV to call upon the Government to provide the new SFGB with a specific remit to promote financial resilience within the self employed sector in 2018.
It is interesting that the research also shows, that whilst the majority of the self employed have no arrangements in place nearly a third of the respondents were actually concerned about the financial effect upon them of not being able to work as a result of an accident or illness.
One way for the self employed to protect their financial position is to make regular savings in order to amass a buffer fund for periods when they are unable to work. Th research shows that 2 million self employed people in the UK simply cannot afford to save on a regular basis. It appears there is not a great awareness of the income protection insurance options available to the self employed which are available as both short term and longer term solutions.
These products include;
- Personal Acident and Sickness Insurance
- ASU : Accident Sickness and Unemployment insurance
- Permanent Health Insurance
Anyone needing furtehr advice on these issues should contact their professional adviser or can contact our offices for further assistance.