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What would you do if you had an accident or fell ill and were unable to work?
It’s not a topic anyone wants to think about, but for a self-employed tradesperson, it’s a question worth asking. If the worst were to happen, could you keep up with bills, rent, or mortgage payments?
At Rhino, we offer Income Protection Insurance, which provides a monthly payment in the event you are signed off work due to sickness, illness, or an injury.
- Income Protection Insurance pays out on a monthly basis when you’re unable to work
- Payment of up to £2,500 per month (or up to 60% of your average monthly income)
- Lump sum payment of 12 times your chosen monthly cover level in the event of your death
- Monthly or annual payment options
- Can be purchased as standalone cover
What is Income Protection Insurance?
Income Protection Insurance is an insurance policy that helps to cover your income if you are signed off work due to an injury or illness for up to a year, helping you stay on your feet financially while you recover.
There are many benefits to being self-employed, however one of the main pitfalls is the lack of sickness pay should you be unable to work. Your time is money, and the harsh truth is if you’re out of the game – you’re not earning a penny.
If something happens to you which means you can’t work, such as suffering an injury or an illness, your income will stop whilst your rent, mortgage, household bills, grocery bills and other costs will continue to pile up.
As a self-employed tradesperson, even a few days out of work can seriously impact your finances - if you’re not working, you’re not earning. If the absence runs into several months, you can imagine the knock-on effect.
Fortunately, Income Protection Insurance offers cover in this scenario, covering up to 60% of your average monthly income if you suffer from a serious injury or death as a result of an accident or you are unable to work due to sickness. This monthly benefit can help to protect you against loss of earnings and help with other bills or expenses whilst you are unable to work, offering priceless peace of mind for a low cost.
Do I need Income Protection Insurance?
If you’re reading this, the answer is probably yes.
Self-employed tradespeople are among the most likely people to need to claim Income Protection Insurance.
This is for a couple of reasons. Firstly, you work on a self-employed basis, so if you cannot work due to sickness or injury, then you won’t get paid. Secondly, working in the trades is statistically more dangerous than other jobs. Unfortunately, this means that you take on more risk day-to-day and are at a higher risk of injury or illness than those working in other professions.
Remember – you’re covered off the clock, too.
It’s not just accidents or illnesses that happen on site. With Rhino’s Income Protection Insurance, you’re also protected during your downtime. Whether you’re injured on the job or fall ill at home, Rhino’s Income Protection policy has you covered. For full details on what’s included, check out the Policy Wording document here.
Do I need Income Protection Insurance if I’m not self-employed?
Despite self-employed people being the most in need of this cover, Income Protection Insurance is for everyone – whether you’re a salaried employee or self-employed. Many people who work for an employer are only entitled to Statutory Sick Pay (SSP) should they be injured or fall ill, which is just £109.40 a week for up to 28 weeks following an accident or illness.
Some employers top this amount up with their own private scheme, but even this only goes so far to cover your basic living expenses while you’re recovering. For this reason, Income Protection Insurance is frequently taken out by people in salaried employment to ensure themselves and their dependents are stress-free and financially comfortable during a period of absence due to sickness or injury.
According to our most recent survey, over 25% of Rhino customers don’t have a months wages saved to help pay their way should they be forced off work. Finding yourself in the same boat? Then it might be time to consider taking out an Income Protection policy.
What does an Income Protection Insurance policy cover?
Income Protection Insurance from Rhino Trade Insurance offers you a monthly payment to cover your income for a period of 3, 6 or 12 months if you are signed off work due to sickness, disease, or injury.
This amount will be based on the indemnity option you have chosen – up to a limit of £2,500 per month. You can spend the payout on anything you wish as the money will be sent directly to your nominated bank account each month, although most people use it to cover key expenses like their mortgage, bills, groceries , or to generally support their existing financial commitments.
To qualify for cover, you must be aged between 18 and 65, either self-employed or employed, and working for a minimum of 16 hours per week.
How much does Income Protection Insurance cost?
Different insurers offer different prices, but with Rhino, you can get your income protected from as little as £66.24 a year – that’s just £5.52 per month.
You’d need to head over to our online quote engine to get an accurate quote, as there are different factors affecting the price of each individual’s policy. These include:
- Salary – if your salary is higher, then you’ll be looking at a higher level of cover, which will come with higher premiums.
- Monthly expenses – if your monthly expenses are high, you’ll need a higher indemnity limit, and therefore, your policy will cost you more each month.
- Debts – if you’re paying off credit cards or loans, you’ll need to allow for these in the cover limit you choose.
- Marital Status – if you have a partner whose earnings can cover some of your usual outgoings, you may not need as much cover.
- Dependents – if you have people depending on you financially, you’ll likely need a higher cover limit.
How does Income Protection Insurance work?
Income Protection Insurance is designed to provide you with a regular monthly payment if you're unable to work due to accident or sickness. Here’s a quick overview of how it works:
If you can’t work because of an accident or illness, the policy will pay out a monthly benefit depending on your selected level of cover. You’ll continue to receive payments until you recover and return to work, reach the maximum benefit period, or the policy ends.
You can claim up to 60% of your gross monthly income if employed, or 60% of your taxable monthly income if self-employed. The policy won’t pay out if you’re outside the UK for more than 90 days or if your circumstances change and you no longer meet the eligibility criteria.
Will Income Protection Insurance pay out if I die?
Nobody wants to imagine the worst, but your dependents and loved ones will be glad you did if it ever came to it. Rhino’s Income Protection Insurance will pay a sum of 12 x your monthly benefit on your death, up to a maximum of £30,000.
WHAT IS THE DIFFERENCE BETWEEN PERSONAL ACCIDENT INSURANCE AND INCOME PROTECTION?
You have probably heard of Personal Accident Insurance, and might be wondering whether it’s the same thing as Income Protection Insurance – and whether you need both.
Although they are similar policies, they have some key differences that makes having both policies well worth it. We have established that Income Protection Insurance pays out a monthly benefit for the period that you are signed off if you are unable to work due to an accident or sickness, with the maximum benefit period being one year.
Personal Accident Insurance from Rhino Trade Insurance pays out a lump sum of up to £50,000 in the event of you suffering an injury as a result of an accident. Personal Accident Insurance does not cover you for illness.
You can purchase either policy in isolation – or both together. It all depends on how risk averse you are, and how financially protected you wish to be should something happen.
What does INCOME PROTECTION INSURANCE cover?
- Where you are unable to work for a period of time due to an accident or sickness this Policy will pay a monthly benefit payment based on the option you have chosen, up to a maximum of £2,500 per month.
- You can choose your monthly benefit provided it does not exceed 60% of your gross monthly income (if employed) or 60% of your taxable monthly income (if self-employed).
- In addition, if you die as a result of an accident the Policy will pay a lump sum of 12 times your chosen monthly benefit amount.
- Note that the Policy will not make any payment for the first 30 days that you are unable to work due to an accident or sickness.
As with any insurance policy some things are not covered, including an accident or sickness resulting from the following:
- Any sickness diagnosed within 90 days after the policy commencement date
- Any pre-existing medical conditions unless you have been symptom free and not received treatment or advice for that condition for at least the 24months before a claim; Normal pregnancy/childbirth related conditions Cosmetic surgical procedures
- Specified back conditions
- Stress, anxiety, depression or any emotional disorder
- Deliberate actions by you,such as criminal acts or misadventure
- War, riot, or civil commotion
- Ionising radiations or radioactive contamination from nuclear waste produced by the combustion of nuclear fuel; the radioactive, toxic, explosive or other hazardous properties of any nuclear device or component
- Earthquakes
- The taking of alcohol or drugs
We recommend that you read the Policy Document in full before deciding whether to purchase cover.
Get in contact with our team by giving us a call on 0116 243 7904 to get a quick quote.
