Life Insurance for Hairdressers UK
Affordable protection for salon professionals
As a hairdresser, you dedicate your career to making others look and feel their best. You're a skilled professional, a confidant, and often a small business owner rolled into one. Your days are long, physically demanding, and require immense creativity and focus. But while you're busy transforming your clients' hair, have you taken a moment to secure your own financial future?
The reality of being a stylist, whether you're employed, a freelancer, or a salon owner, is that your income is directly tied to your ability to stand behind the chair. An unexpected illness, a serious injury, or worse could instantly jeopardise your livelihood and the financial stability of your loved ones.
This is where protection insurance – like Life Insurance, Critical Illness Cover, and Income Protection – becomes not just a 'nice-to-have', but an essential part of your professional toolkit. This comprehensive guide is designed specifically for UK hairdressers. We'll cut through the jargon, explore the unique risks of your profession, and show you how to build an affordable and robust financial safety net.
Why Hairdressers Need to Prioritise Financial Protection
The hair and beauty industry is a vibrant and significant part of the UK economy. According to the National Hair & Beauty Federation (NHBF), the sector is comprised of over 53,000 businesses, demonstrating the entrepreneurial spirit of professionals like you. However, this same structure brings unique financial vulnerabilities.
The Reality of Your Profession:
- High Rate of Self-Employment: A large percentage of the UK's 250,000+ hair and beauty professionals are self-employed. This means no statutory sick pay, no holiday pay, and no employer pension contributions. If you don't work, you don't earn.
- Physical Demands: Your job isn't a desk job. It involves standing for hours, repetitive hand and wrist movements, and leaning over clients. This puts you at a higher risk of musculoskeletal disorders (MSDs) which could force you to take significant time off work.
- Chemical Exposure: Daily contact with dyes, bleaches, styling products, and cleaning agents can lead to serious skin conditions like dermatitis or respiratory problems, potentially ending a career prematurely.
- The Financial Domino Effect: For a hairdresser, being unable to work for even a few weeks can be financially devastating. Without an income, how would you cover your mortgage or rent, bills, supplier costs, or support your family?
Without a safety net, an illness or injury doesn't just impact your health; it threatens your home, your business, and your family's future.
Understanding the Core Protection Policies
Navigating the world of insurance can seem complex, but the main products are designed to protect you against different life events. Think of them as specialised tools, each with a specific job.
1. Life Insurance
Life Insurance pays out a tax-free lump sum if you pass away during the policy term. It’s the foundational layer of financial protection for anyone with dependents or financial commitments.
- Who is it for? Anyone who has a mortgage, children, a partner who relies on their income, or wants to cover funeral costs.
- How does it help a hairdresser? It ensures your family can pay off the mortgage, cover household bills, and manage financially without your income. If you own a salon, it can also provide the funds to settle business debts.
There are several types of life insurance to suit different needs and budgets:
| Policy Type | How it Works | Best For... |
|---|---|---|
| Level Term | The payout amount remains the same throughout the policy term. | Covering an interest-only mortgage, providing a set inheritance for children. |
| Decreasing Term | The payout amount reduces over time, usually in line with a repayment mortgage. | Covering a repayment mortgage, as it's typically cheaper than level term. |
| Family Income Benefit | Instead of a lump sum, it pays out a regular, tax-free income until the policy term ends. | Young families wanting to replace a lost monthly income for daily living costs. |
2. Critical Illness Cover
Critical Illness Cover (CIC) pays out a tax-free lump sum if you are diagnosed with a specific, serious illness defined in the policy. It's designed to protect you financially while you are alive.
- Who is it for? Anyone who wants a financial cushion to manage the immense costs and lifestyle changes that follow a serious diagnosis.
- How does it help a hairdresser? The lump sum can be a lifeline. You could use it to:
- Cover your income while you recover and can't work.
- Pay for private medical treatment or specialist therapies.
- Adapt your home if you have a long-term disability.
- Clear debts like credit cards or car loans to reduce financial stress.
- Give you the financial freedom to retrain for a new career if you can no longer work as a hairdresser.
Common conditions covered include most types of cancer, heart attack, stroke, and multiple sclerosis, but policies can cover 50+ conditions.
3. Income Protection Insurance
For a hairdresser, especially one who is self-employed, Income Protection is arguably the most crucial policy of all. It pays a regular, tax-free monthly income if you're unable to work due to any illness or injury.
- Who is it for? Every working adult, but it is essential for the self-employed and those without generous employer sick pay.
- How does it help a hairdresser? It acts as your personal sick pay scheme. If you suffer from back pain, develop carpal tunnel syndrome, or are signed off with stress and can't work, this policy kicks in to replace a percentage of your earnings (typically 50-60%). This allows you to keep paying your bills and focus on recovery without financial panic.
Key Features of Income Protection:
- Deferment Period: This is the waiting period before the payments start, ranging from 4 weeks to 12 months. A longer deferment period means a lower premium. You can align it with any savings you have.
- "Own Occupation" Definition: This is the gold standard for a skilled professional. It means the policy will pay out if you are unable to do your specific job as a hairdresser. Cheaper policies might use an "any occupation" definition, which only pays if you're unable to do any job, making it much harder to claim. Always insist on an 'own occupation' definition.
The Unique Risks of the Hairdressing Profession & How Insurance Helps
Your profession carries specific health risks that many office-based workers don't face. Understanding these risks highlights why a tailored protection plan is so important.
Musculoskeletal Disorders (MSDs)
The Health and Safety Executive (HSE) identifies hairdressing as a high-risk occupation for MSDs. The long hours spent standing, combined with the repetitive motions of cutting, styling, and blow-drying, take a toll.
- Common Conditions: Carpal Tunnel Syndrome, tenosynovitis (inflammation of a tendon sheath), chronic back pain, neck and shoulder strain.
- The Impact: These conditions can cause debilitating pain, making it impossible to hold scissors or stand for a full day's work. They are a leading cause of long-term absence.
- The Insurance Solution:
- Income Protection: Your primary defence. It provides a monthly income while you undergo physiotherapy, rest, or even surgery, allowing you to recover properly without rushing back to work and causing further damage.
- Critical Illness Cover: While most MSDs won't trigger a CIC claim, a severe condition leading to a permanent disability might. Some policies also offer early-stage payments for certain surgeries.
Skin Conditions (Dermatitis)
Contact dermatitis is the hairdresser's occupational hazard. Constant exposure to water, shampoos, and harsh chemicals in dyes and bleaches strips the skin of its natural protective oils.
- The Impact: Severe dermatitis can cause painful, cracked, and weeping skin on the hands. In serious cases, a doctor may advise a complete career change to avoid the irritants.
- The Insurance Solution:
- Income Protection ('Own Occupation'): This is vital. If dermatitis prevents you from performing your duties as a hairdresser, an 'own occupation' policy will pay out, giving you an income while your skin heals or while you retrain for a new career.
Mental Health & Stress
Hairdressers often act as unofficial therapists for their clients, absorbing their stresses while managing their own. The pressure of running a busy column, managing staff, or the financial insecurity of freelance work can lead to significant stress, anxiety, and burnout.
- The Impact: Mental health conditions are a leading cause of work absence in the UK. Burnout can leave you unable to face the social and creative demands of your job.
- The Insurance Solution:
- Income Protection: Most modern policies cover mental health conditions just as they would a physical illness, providing financial support if you are signed off work.
- Value-Added Benefits: Crucially, many insurers now include mental health support as part of their package. This can include access to counselling sessions, stress helplines, and digital therapy apps, providing proactive support before the issue becomes overwhelming.
Tailored Solutions for Every Career Stage
Your protection needs will evolve as your career progresses. What's right for an apprentice is different from what a salon owner needs.
The Employed Stylist
If you work in a salon, your first step is to check your employment contract.
- What to look for: How much sick pay do you get, and for how long? Do you have any 'death in service' benefit (a type of life insurance)?
- Bridging the Gap: Employer benefits are often limited. Statutory Sick Pay is very low, and even company sick pay schemes usually run out after a few months. A personal Income Protection policy can top up or replace your income for the long term. A personal Life Insurance policy ensures your mortgage is covered, as an employer's 'death in service' benefit is rarely enough on its own.
The Self-Employed Freelancer / Mobile Hairdresser
You are your own business. If you stop, the money stops.
- The Non-Negotiable: Income Protection is essential. Without it, you have no safety net. Choose a deferment period you can manage (e.g., if you have 3 months of savings, choose a 3-month deferment period to lower your premium).
- The Foundations: Life Insurance and Critical Illness Cover are vital to protect your family and cover major debts like a mortgage. For younger freelancers, Family Income Benefit can be a very cost-effective way to secure your family's monthly budget.
The Salon Owner
As a business owner, you have to protect not only yourself and your family but also the business itself.
- Personal Protection: Your personal Life Insurance, Critical Illness Cover, and Income Protection remain fundamental.
- Business Protection: This is specialist insurance designed to ensure your business can survive the loss of a key person.
Here’s a look at key policies for salon owners:
| Business Policy | What it Does | Why a Salon Owner Needs It |
|---|---|---|
| Key Person Insurance | Pays a lump sum to the business if a key employee (e.g., the owner or a top stylist who brings in most of the revenue) dies or suffers a critical illness. | The money can be used to cover lost profits, recruit a replacement, or repay business loans, preventing the salon from collapsing. |
| Executive Income Protection | A policy paid for by the limited company for a director. It provides a monthly income if they can't work due to illness/injury. | This is a highly tax-efficient way to get income protection. The premiums are usually an allowable business expense. |
| Relevant Life Cover | A 'death-in-service' policy for directors, paid by the company. It pays a lump sum to the director's family if they die. | Also very tax-efficient. It's not treated as a P11D benefit, and the premiums are typically an allowable business expense. |
| Gift Inter Vivos | A specialised life insurance policy to cover a potential Inheritance Tax (IHT) bill on a gift you've made (e.g., giving a child a large sum for a house deposit). | If you die within 7 years of making the gift, IHT may be due. This policy pays out to cover that specific tax liability. |
As a salon owner, getting expert advice from a broker like WeCovr is crucial to structure these policies correctly for maximum tax efficiency and protection.
How Much Does Life Insurance for a Hairdresser Cost?
The good news is that protection insurance is often far more affordable than people think. Your job title as a 'hairdresser' doesn't automatically mean high premiums, but insurers will consider the specific risks involved, especially for Income Protection.
Factors that Influence Your Premiums:
- Age: The younger you are when you take out a policy, the cheaper it will be.
- Health & Lifestyle: Your medical history, height, weight (BMI), and whether you smoke or vape have a significant impact. Non-smokers pay substantially less.
- Policy Details:
- Cover Amount: How much you want the policy to pay out.
- Policy Term: How long you want the cover to last.
- Policy Type: Decreasing term is cheaper than level term.
- For Income Protection:
- Deferment Period: A longer wait means a lower premium.
- Occupation Class: Insurers categorise jobs based on risk. While hairdressing is seen as skilled, the physical aspects can place it in a slightly higher risk class than a pure office job, which may affect the premium.
Illustrative Monthly Premiums
To give you an idea, here are some examples. These are for illustrative purposes only and are not a quote. Your actual premium will depend on your individual circumstances.
Example 1: Level Term Life Insurance (£200,000 over 25 years)
| Age | Non-Smoker | Smoker |
|---|---|---|
| 30 | £10.50 | £18.00 |
| 40 | £18.50 | £35.00 |
Example 2: Income Protection (Pays £1,800/month until age 65, 3-month deferment)
| Age | Non-Smoker (Own Occupation) |
|---|---|
| 30 | £28.00 |
| 40 | £45.00 |
As you can see, securing a significant level of protection can cost less than a weekly takeaway coffee or a client's cut and blow-dry.
Getting the Application Right: Tips for Hairdressers
Honesty is the best policy when applying for insurance. Full disclosure is essential to ensure your policy is valid and pays out when you need it most.
- Be Honest About Your Health: Disclose all pre-existing medical conditions, no matter how minor you think they are.
- Declare Skin Conditions: If you have a history of dermatitis, even if it's currently under control, you must declare it. An insurer might add an 'exclusion' for dermatitis-related claims on an Income Protection policy, but it's better to know this upfront than to have a claim denied later. A broker can help find the most sympathetic insurer for your condition.
- Be Precise About Your Job: For Income Protection, clearly describe your daily tasks – the hours spent standing, the use of scissors and chemicals. This helps the insurer accurately assess your risk and ensures you have the right 'own occupation' cover.
- Smoking & Vaping Status: Be truthful. Insurers test for nicotine during the medical screening process. Lying will invalidate your policy. If you've quit, you can usually be classed as a non-smoker after 12 months, which will significantly reduce your premiums.
Beyond the Policy: Added Value and Wellness Benefits
Modern insurance policies are about more than just a cheque. Insurers now compete by offering a wealth of 'value-added' benefits, available to you from the day your policy starts. For a busy hairdresser, these can be incredibly useful:
- Virtual GP Services: 24/7 access to a GP via phone or video call, helping you get medical advice without having to take time out of your busy schedule.
- Mental Health Support: Access to confidential counselling and therapy sessions to help you manage stress and anxiety.
- Physiotherapy & Second Medical Opinions: Get expert help for those developing aches and pains, or have a leading specialist review a diagnosis.
- Health & Wellness Apps: Discounts on gym memberships and wearable tech to encourage a healthy lifestyle.
At WeCovr, we believe in proactive health. That's why, in addition to the benefits provided by the insurer, we give our customers complimentary access to CalorieHero, our AI-powered calorie and nutrition tracking app. It's our way of helping you stay on top of your health and wellbeing, showing that we're invested in your future, not just your policy.
How WeCovr Can Help You Find the Right Cover
Trying to compare policies from dozens of different insurers can be overwhelming. Each has different definitions, conditions, and pricing. This is where an expert independent broker makes all the difference.
At WeCovr, we specialise in helping professionals like you find the right protection.
- We're Independent Experts: We are not tied to any single insurer. We compare plans from all the major UK providers to find the policy that truly fits your needs and budget.
- We Understand Your Profession: We know the specific risks hairdressers face and can advise on the crucial policy features you need, like the 'own occupation' definition for Income Protection.
- We Handle the Hassle: We guide you through the application form, help you with the medical disclosures, and deal with the insurer on your behalf.
- We're Your Advocate: If you ever need to make a claim, we're here to support and guide you through the process, ensuring it's as smooth and stress-free as possible.
Your skill, talent, and hard work deserve to be protected. Let us help you build a financial safety net that gives you peace of mind, allowing you to focus on what you do best: creating beautiful hair and building your business.
As a self-employed hairdresser, isn't Income Protection expensive?
It's more affordable than you might think and is essential for anyone who is self-employed. The cost depends on your age, health, the cover amount, and the deferment period. By choosing a longer deferment period (e.g., 13 or 26 weeks) that aligns with your savings, you can significantly reduce the monthly premium. Think of it not as a cost, but as an investment in guaranteeing your income.
Do I need to declare skin conditions like dermatitis on my application?
Yes, absolutely. You must disclose any pre-existing medical conditions, including dermatitis, eczema, or other skin issues, even if they are mild or historical. An insurer may apply an exclusion for that specific condition on an Income Protection policy, but non-disclosure could invalidate your entire policy, meaning they could refuse any claim. A broker can help find an insurer with the most favourable terms for your situation.
What happens if I change from being employed to self-employed?
Your personal policies like Life Insurance and Critical Illness Cover will continue as normal. For Income Protection, you should review your cover. You may want to increase the amount to reflect your total earnings and potentially shorten the deferment period, as you will no longer have an employer's sick pay scheme to fall back on. It's a good idea to speak to your broker to ensure your cover remains adequate for your new circumstances.
Can I get cover if I'm a smoker or vaper?
Yes, you can still get all types of protection insurance. However, you will be classed as a smoker, which means your premiums will be higher than for a non-smoker, sometimes significantly so. This is due to the increased health risks associated with smoking and vaping. If you quit, you can typically apply to be re-assessed as a non-smoker after 12 months of being nicotine-free, which would lower your future premiums.
Is Key Person Insurance tax-deductible for my salon?
In many cases, yes. If the policy is taken out purely to cover a loss of business profit or revenue resulting from the death or critical illness of a key employee, HMRC will typically allow the premiums to be treated as an allowable business expense. However, tax rules can be complex, and it's essential to get professional advice to ensure the policy is structured correctly. The same applies to Executive Income Protection and Relevant Life Cover.
Why life insurance and how does it work?
What is Life Insurance?
Life insurance is an insurance policy that can provide financial support for your loved ones when you or your joint policy holder passes away. It can help clear any outstanding debts, such as a mortgage, and cover your family's living and other expenses such costs of education, so your family can continue to pay bills and living expenses. In addition to life insurance, insurance providers offer related products such as income protection and critical illness, which we will touch upon below.How does it work?
Life insurance pays out if you die. The payout can be in the form of a lump sum payment or can be paid as a replacement for a regular income. It's your decision how much cover you'd like to take based on your financial resources and how much you'd like to leave to your family to help them deal with any outstanding debts and living expenses. Your premium depends on a number of factors, including your occupation, health and other criteria.The payout amount can change over time or can be fixed. A level term or whole of life policy offers a fixed payout. A decreasing term policy offers a payout that decreases over the term of the cover.
With critical illness policies, a payout is made if you’re diagnosed with a terminal illness with a remaining life expectancy of less than 12 months. While income protection policies ensure you can continue to meet your financial commitments if you are forced to take an extended break from work. If you can’t work because you’ve had an accident, fallen sick, or lost your job through no fault of your own, income protection insurance pays you an agreed portion of your salary each month.
Income protection is particularly helpful for people in dangerous occupations who want to be sure their mortgage will always be covered. Income protection only covers events beyond your control: you’re much less likely to be covered if you’re fired from your job or if you injure yourself deliberately.
Questions to ask yourself regarding life insurance
Just ask yourself:👉 Who would pay your mortgage or rent if you were to pass away or fall seriously ill?
👉 Who would pay for your family’s food, clothing, study fees or lifestyle?
👉 Who would provide for the costs of your funeral or clear your debts?
👉 Who would pay for your costs if you're unable to work due to serious illness or disability?
Many families don’t realise that life, income protection and critical illness insurance is one of the most effective ways to protect their finances. A great insurance policy can cover costs, protect a family from inheriting debts and even pay off a mortgage.
Many would think that the costs for all the benefits provided by life insurance, income protection insurance or critical illness insurance are too high, but the great news is in the current market policies are actually very inexpensive.
Benefits offered by income protection, life and critical illness insurance
Life insurance, income protection and critical illness insurance are indispensable for every family because a child loses a parent every 22 minutes in the UK, while every single day tragically 60 people suffer major injuries on the UK roads. Some people become unable to work because of sickness or disability.Life insurance cover pays out a lump sum to your family, loved ones or whomever you choose to get the money. This can be used to secure the financial future of your loved ones meaning they would not have to struggle financially in the event of your death.
If it's a critical illness cover, the payout happens sooner - upon diagnosis of a serious illness, disability or medical condition, easing the financial hardship such an event inevitably brings.
Income protection insurance can be very important for anyone who relies on a pay check to cover their living costs, but it's especially important if you’re self-employed or own a small business, where your employment and income is a bit less stable. It pays a regular income if you can't work because of sickness or disability and continues until you return to paid work or you retire.
In a world where 1 in 4 of us would struggle financially after just four weeks without work, the stark reality hits hard – a mere 7% of UK adults possess the vital shield of income protection. The urgency of safeguarding our financial well-being has never been more palpable.
Let's face it – relying on savings isn't a solution for everyone. Almost 25% of people have no savings at all, and a whopping 50% have £1,000 or less tucked away. Even more concerning, 51% of Brits – that's a huge 27 million people – wouldn't last more than one month living off their savings. That's a 10% increase from 2022.
And don't even think about state benefits being a safety net. The maximum you can expect from statutory sick pay is a mere £109.40 per week for up to 28 weeks. Not exactly a financial lifeline, right?
Now, let's tackle a common objection: "But I have critical illness insurance. I don't need income protection too." Here's the deal – the two policies apply to very different situations. In a nutshell:
- Critical illness insurance pays a single lump sum if you're diagnosed with or undergo surgery for a specified potentially life-threatening illness. It's great for handling big one-off expenses or debts.
- Income protection, on the other hand, pays a percentage of your salary as a regular payment if you can't work due to illness or injury. It's the superhero that tackles those relentless monthly bills.
Types of life insurance policies
Common reasons for getting a life insurance policy are to:✅ Leave behind an amount of money to keep your family comfortable
✅ Protect the family home and pay off the mortgage in full or in part
✅ Pay for funeral costs
Starting from as little as a couple of pounds per week, you can do all that with a Life Policy.
Level Term Life Insurance
One of the simplest forms of life insurance, level term life insurance works by selecting a length of time for which you would want to be covered and then deciding how much you would like your loved ones to receive should the worst happen. Should your life insurance policy pay out to your family, it would be in a lump sum amount that can be used in whatever way the beneficiary may wish.
Decreasing Term Life Insurance
Decreasing term life insurance works in the same way as level term, except the lump sum payment amount upon death decreases with time. The common use for decreasing term life cover is to protect against mortgage repayment as the lump sum decreases along with the principal of the mortgage itself.
Increasing Term Life Insurance
Increasing term life insurance aims to pay out a cash sum growing each year if the worst happens while covered by the policy. With increasing term life cover amount insured increases annually by a fixed amount for the length of the policy. This can protect your policy's value against inflation, which could be advantageous if you’re looking to maintain your loved ones’ living standards, continue paying off your mortgage in line with its repayment schedule and cover your children’s education fees.
Whole of Life Insurance
Whereas term life insurance policies only pay out if you pass away during their term, whole of life insurance pays out to your beneficiaries whenever this should happen. The most common uses for whole life insurance are to cover the costs of a funeral or as a vehicle for your family's inheritance tax planning.
Family Income Benefit
Family income benefit is a somewhat lesser-known product in the family of life insurance products. Paying out a set amount every month of year to your beneficiaries, it is the most cost-effective way of maintaining your family's living standards to an age where you'd expect them to be able to support themselves financially. The most common use would be for a family with children who are not working yet so are unable to take care of themselves financially.
Relevant Life Insurance
Relevant Life Insurance is a tax-efficient policy for a director or single employee. A simple level term life insurance product, it is placed in a specific trust to ensure its tax efficiency. The premiums are tax deductible and any benefit payable should a claim arise is also paid out tax free, which makes it an attractive product for entrepreneurs and their businesses.
Important Fact!
There is no need to wait until the renewal of your current policy.
We can look at a more suitable option mid-term!
We can look at a more suitable option mid-term!
Why is it important to get life insurance early?
👉 Many people are very thankful that they had their life, income protection, and critical illness insurance cover in place before running into some serious issues. Critical illness and income protection insurance is as important as life insurance for protecting your family's finances.👉 We insure our cars, houses, bicycles and even bags! Yet our life and health are the most precious things we have.
Easily one of the most important insurance purchases an individual or family can make in their lifetime, the decision to buy life, income protection, critical illness and private medical health insurance can be made much simpler with the help of FCA-authorised advisers. They are the specialists who do the searching and analysis helping people choose between various types of life insurance policies available in the market, including income protection, critical illness and other types of policies most suitable to the client's individual circumstances.
It certainly won't do any harm if you speak with one of our experienced FCA-authorised insurance partner experts who are passionate about advising people on financial matters related to life insurance and are keen to provide you with a free consultation.
You can discuss with them in detail what affordable life, income protection, critical illness or private medical health insurance plan for the necessary peace of mind they would recommend! WeCovr works with some of the best advisers in the market.
By tapping the button below, you can book a free call with them in less than 30 seconds right now:
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WeCovr is an insurance specialist for people valuing their peace of mind and a great service.👍 WeCovr will help you get your private medical insurance, life insurance, critical illness insurance and others in no time thanks to our wonderful super-friendly experts ready to assist you every step of the way.
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