Do you insure your earnings?

[Lampy Craig]

I was supposed to be working for a local production company today, but instead I'm sat in front of my computer with something stuck in my eye. Been to the doctors and she told me it may be scratched and I won't be able to see properly for a couple of days due to rubbing in cream.

This obviously means I'm going to have to miss out on two days work (being a lampy the eyes come in quite handy sometimes), and miss out on two lots of my day rate. (not too handy just before Christmas).

So I am now wondering if I should take out an insurance policy on my earnings as many of my friends in the building trade do. Any body do this themselves? or know of a good company that provides such a policy?

 

Obviously two days is not too much to cry about, but imagine breaking your leg and being out of action for a while longer.

[Guest lightnix]

You can get what are known as "Income Protection Policies" from a variety of brokers, but how much you pay depends largely on how old you are (the younger the better). You have to be ill for about four weeks before you can claim on any of them though.

 

I have one which will pay a pittance in the event of serious incapacity but it's backed up by a scheme from HMCA, which I got via the Federation of Small Businesses. IIRC it will pay about £80 for every day I'm in hospital - not exactly 100% of my daily rate, but better than a kick in the teeth and I have joked in the past about how some kind of "mystery illness" would occasionally come in handy, especially in the early part of the year :)

[robloxley]

As lightnix says, look at permanent health insurance (AKA income replacement insurance, income protection insurance, long-term disability insurance). However this only pays out after a set waiting period (typically from 1 to 12 months) and is more expensive depending how quickly you need it to pay out. Some will also only pay out if you can't do any job, rather than the one you currently do - avoid these, as making a claim is therefore near-impossible. Also freelance technician is probably fairly high risk (for being injured/off work etc.) and likely to attract higher premiums, and some companies may not cover you; likewise age & medical history may be relevant.

 

Another option would be to build up some funds to cover such a period yourself, avoiding PHI or to extend the period before the policy pays out.

 

However the best advice is to speak to an IFA and get some quotes once you decide how much/how quick cover you need.

[Lampy Craig]

nice one, cheers