Income Protection Insurance for the Self-Employed

By Damien Quirk, AFP®, Financial Advisor, Blueprint Wealth

If you work for yourself, you have chosen a very special path for you and your family.  As a business owner, you have flexibility in your decision making, the freedom to set your own schedule and lead through your own set of values towards your vision.

But here’s a thought: what happens if you cannot work or collect an income due to an illness?  It is an unfortunate reality that may affect many of us at some stage in our life.

If you become ill and are a business owner, chances are you will be focussed on your next billable hour or job, less so on your recovery or treatment. You may go back to work early if you can, potentially risking longer term injury or aggravation and recurrence. If you rely on your physical skill and ability, you should not have to return to work until you can safely and competently complete your tasks.

As a business owner, how can you protect your income if you are unable to work due to illness?

While nobody expects an interruption to their income as a result of an injury or illness; accidents and sickness can strike when you least expect it. With income protection insurance, at least if your situation does change temporarily, you will be able to continue to pay your bills and support your family. Income Protection is designed to cover you temporarily if you are unable to work due to injury or illness so that you’re able to maintain your day-to-day living expenses during your recovery period.

You will protect a lot of things by protecting your income: your reputation for providing for your family and your reputation with your customers for doing fine work or getting the task done even when you are unable to be there. You will also protect those who work for you and rely on you for the longer term. You will be protecting your assets and all the things that you have worked hard to create. You will also protect your reputation as a good borrower because you will not miss a loan obligation.

Your income gives you a lot; including your future goals and dreams.  Jane Austen once said:

“A large income is the best recipe for happiness I ever heard of.”

When you are unable to work, happiness takes on a totally different meaning. When my clients have needed to claim on income protection insurance, they are happy that they can.

Talk to a financial planner today about how you can protect what is important to you as a business owner.

At Blueprint Wealth, we offer financial advice that is right for you, no matter what stage of life you are at. Contact us today to set up a plan that is right for you.

Damien Quirk is an Authorised Representative of AMP Financial Planning Pty Limited.

Blueprint Planning Pty Ltd ABN 78 097 264 554 trading as Blueprint Wealth is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 Australian Financial Services Licence 232706 and Australian Credit Licence 232706.

Disclaimer: Any advice contained in this article is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regard to those matters.