The overwhelming majority of self-employed workers have no critical illness cover, leaving them open to financial ruin in the event of long-term sick leave.
Scottish Widows polled 5,077 individuals and found 93% of Britain’s 4.8 million-strong self-employed workforce has no critical illness cover.
76% of respondents said they have nobody to cover for them if they be unable to work for themselves, with 42% not seeing critical illness cover as a priority.
Almost half (47%) of self-employed workers have no savings to fall back on, while 62% have no other source of income outside of running their business.
The average self-employed worker has enough savings to last 9.2 months if they were unable to work, but 48% said their household is solely reliant on income they provide.
Quote from Nigel Holland:
“It is crucial that all self employed workers have a back-up plan in order to protect themselves and their family from the downfall which may occur. The self employed should ensure that they have savings kept away so that they have capital to fall back on and live off for a short while. I would suggest that life insurance and/or critical illness cover are taken into consideration to ensure that financially they will be able to cope.”
https://www.hollandandcompany.co.uk/