Best life insurance, income protection and critical illness cover in 2021 for contractors
Latest figures show there are millions of self-employed professionals working in the UK. They have seen their working lives transformed as a result of anti-covid measures introduced by the government.
By the end of 2019, there were more than 5 million self-employed (i.e. those who define themselves as working for themselves, rather than receiving a wage or salary from an employer) people in the UK, up from 3.2 million in 2000.
Self-employment has contributed strongly to employment growth in the labour market, with self-employed people representing 15.3% of employment, up from 12% in 2000.
Out of which, approximately 1.8 million were working as full-time contractors and over 200,000 working part-time as their second job. Number of self-employed professionals in the UK has been increasing by double digits over the last few years.
For those working as contractors, life insurance is an essential insurance policy to have. No contractor wants to consider death, but all contractors want to make sure their loved ones are protected financially should the worst happen.
Contractors' life insurance will pay a lump sum to your loved ones which will allow them to pay off your mortgage and any other outstanding debts, cover your funeral expenses and even provide a lump sum or a regular income to your dependents replacing your earnings for a period of time that you select.
Prior to embarking on their contracting journey, many contractors had been in employment where they would have had a death-in-service policy paid for by their employer, at no cost to them, and for typically a multiple of their salary.
However, when they go independent, their former employer's death-in-service policy will cease to apply. This means they need to think how to provide benefits to those left behind in the event of their untimely death.
Contractors have a number of types of life insurance cover to choose from. Some policies, for example, relevant life insurance, may be quite tax-efficient as they are paid by their limited liability company as a legitimate business expense and payouts are protected from inheritance tax.
To help you choose the right type of policy and insurer, it costs nothing to speak to our highly-trained award-winning advisers that are available via the 30-second application form on the button below.
WeCovr works with only FCA-authorised insurance experts that specialise in underwriting contractors and freelancers. They are not tied to any one insurance provider, which allows them to provide you with the best value-for-money insurance offers if you work as a contractor.
The cost of life insurance is going to vary with the specific type of activities undertaken, your health situation, smoking habits and other key factors.
Contractors' Life Insurance Cover - questions you may be asked
- What are the typical daily activities that you are involved in as a contractor?
- The level of life insurance cover required
- How many years the policy is required to last
- Who are the beneficiaries of your life insurance cover?
For a fast, free, no-obligation quote for Contractors' Life Insurance cover you can fill in a quick form available by tapping the button below.
Income Protection Cover for Contractors
WeCovr can provide competitive income protection cover quotes. If you are unable to work due to illness or injury, by having income protection cover you will be paid a regular income. Typically, the policy will pay out after a pre-agreed period which can vary from one month to one year after you make a claim.
As with life insurance cover, the riskier your occupation, the higher the perceived risk. Some of the common questions asked to formulate a quote can include:
- What level of income will you require?
- What is your current occupation as a contractor?
- Outline tasks involved in your daily activities
Critical Illness Cover for Contractors explained
Critical Illness Cover is designed to pay out a lump sum if you have to go through a medical procedure or are diagnosed with a critical illness and survive at least ten days from diagnosis. The lump sum amount is to assist dependents financially while letting you concentrate on your diagnosis and recovery without having to worry about finances.
The list of illnesses that are part of critical illness cover includes but are not limited to some of the following:
- Alzheimer’s disease
- Multiple Sclerosis
- Some types of cancer
- Heart attack
To offer you best value-for-money insurance plans, WeCovr's insurance partners will need to ask several questions, including:
- How long do you want your policy to last?
- Do you want level or decreasing cover?
- Do you want to add a terminal benefit to your critical illness cover?
Get a free, no-obligation quote today for Contractors' Life Insurance cover – protect your family!