Health

Self-employed at greater risk from lack of life insurance

Fred Heritage | 4 October 2016 | 8 years ago

life insurance
Only seven per cent of self-employed workers have critical illness cover

Over four million self-employed workers in the UK do not have insurance cover should they become critically ill, despite an over-reliance from families on their income, a new survey has revealed.

Just seven per cent of the self-employed workforce has critical illness cover, compared with nine per cent of the UK workforce overall, a study from insurer Scottish Widows has shown.

With the population of self-employed in Britain jumping to 4.79m in 2016 representing over 15 per cent of all workers as many as 4.3m were found to be without protection.

In addition, the findings showed that families of self-employed people depend more on their income than the average population, widening the so-called financial protection gap.

Two-thirds of self-employed people’s? households in the UK relied solely on one wage earner, compared with just 52 per cent of the wider population.?

As a result, the impact of losing their main source of income would hit self-employed people and their families the hardest. More than one in five self-employed workers said they wouldnt be safe financially, while 12 per cent didnt know how long theyd be able to keep paying their bills.

The survey also found that monthly outgoing costs among self-employed people were higher than on average, with rent and mortgage payments likely to be higher for the group.

Self-employed are more likely to have other debt too, with 36 per cent carrying over non-mortgage debt each month since July this year compared with 33 per cent on average.

Commenting on the survey’s findings, protection insurance specialist Jon Timpson said: With so many families reliant on the income of self-employed people, it is absolutely vital that they have a back-up plan in place should the worst happen.

given the continued rise in the number who are self-employed in the UK, this research unveils a worryingly uncertain picture for a significant proportion of the workforce.?

Suprisingly, very few self-employed workers viewed life insurance as an essential business expense. While 78 per cent revealed that a mobile phone was a necessity, only 39 per cent considered life insurance vital.

Read on to discover the six common traits that make a successful entrepreneur.

Topic

Health

Related Topics

Exploring the Immersive World of VR Development: Applications and Opportunities
25 September 2023

Exploring the Immersive World of VR Development: Applications and Opportunities

Read More →
Healthy Habits To Keep You Productive
27 June 2022

Healthy Habits To Keep You Productive

Read More →
How to achieve work-life balance whilst scaling up your business
12 July 2019

How to achieve work-life balance whilst scaling up your business

Read More →
NHS to open gambling addiction clinic for 13-25 year olds
9 July 2019

NHS to open gambling addiction clinic for 13-25 year olds

Read More →
WHO names vaccine hesitancy major threat to global health
8 July 2019

WHO names vaccine hesitancy major threat to global health

Read More →
Here’s how likely your staff are to pull sickies during the World Cup
6 June 2018

Here’s how likely your staff are to pull sickies during the World Cup

Read More →

If you enjoy reading our articles,
why not sign up for our newsletter?

We commit to just delivering high-quality material that is specially crafted for our audience.

Join Our Newsletter