It’s reported that 250,000 people each year leave employment due to illness, and one million workers suddenly find themselves unable to work due to serious illness or injury[2].
Whilst employed workers have the convenience of Statuary Sick Pay (SSP) to see them through, which is £96.35 a week for up to 28 weeks, self-employed workers would have to rely on state welfare.
Around 80,000 self-employed workers claim Employment and Support Allowance (ESA) through the government every year.
ESA provides you with a weekly allowance, which is calculated based on your age and other factors, whilst you’re unable to work.
The maximum amount you can claim over the age of 25 is £114.10 a week[3], for a long-term health condition or disability.
If you’re able to return to work, this amount could be just £74.35 a week.
Is this adequate to pay your bills, mortgage/rent and lifestyle costs?
If not, then you’ll need some form of income protection to help keep you financially afloat until you’re able to return to work.
For extra peace of mind, you could also have critical illness cover in place to benefit from the cash lump sum pay out.
This can be used in other ways, for example, making adaptions to your home in order to make it more comfortable whilst you recover.