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Income Protection

As a Contractor you will be enjoying many of the perks of being your own boss, but it is important to avoid the pitfalls that come from leaving full time employment.

If you are unable to work for whatever reason then there is little by way of employee sick pay to rely on. Income protection (also known as Permanent health insurance or PHI) can bridge the gap and help to cover your expenses until you are back on your feet again.

What is income protection?

Contractor Financials offer income protection plans that are tailored to your needs as a contractor. A typical plan:

  • Will pay a tax free monthly income following a certain period of illness such as 3 months and will pay until you recover or reach your retirement age.
  • Offers a one day waiting period if you don’t have access to any savings to bridge the gap.
  • Provides the piece of mind that you can maintain your lifestyle and protect your family should you be unable to work.


The advisers at ContractorFinancials understand your unique needs as a contractor and will ensure that they take key factors into consideration when advising you on your income protection policy such as the way you are paid, market instability, employment status and whether you work abroad.

Income protection plans for contractors should guarantee the following

  • The plan should be suitable for short term contract workers and cover both salary and any future dividends in case your employment status changes.
  • The plan should cover you for the job that you are doing now so that the insurer cannot say you are fit enough to do a menial role and refuse to pay.
  • Protection premiums should be guaranteed rather than reviewable so that the premium won’t fluctuate with the market conditions.
  • The minimum number of exclusions should apply so that it will pay out what you deserve when you need to make a claim.
  • The insurer should have an excellent track record of paying out when claims are made and meeting their clients needs.

For detailed information on your circumstances please email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 0845 062 8888

The FSA do not regulate some forms of insurance / protection. Certain life policies have an investment element. It is important to understand that these investments are longer term in nature and that the value of investments and income from them can fall as well as rise. Past performance is also no guarantee of future performance.

Financial advice on these pages is given by ContractorFinancials, which is a trading name of Contractor Financials Ltd who are regulated and authorised by the Financial Services Authority.

Not all products are regulated by the FSA e.g. buy to let mortgages. All rights reserved and E & OE.

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