Income Protection for Freelancers

Information verified correct on September 27th, 2016

Why Should Freelancers Consider Income Protection?

Freelancing gives people a certain freedom. There can be the flexibility of being able to define your own work schedule. However, as a freelancer you don't have the luxury of sick pay, or any of the other personal insurance protection schemes an employee has come to expect as being normal in this day and age.

Being a freelancer means being fully reliant on yourself, and being able to perform your tasks on your own volition. If you couldn't get up each day and get your required amount of work done you wouldn't be a freelancer anyway, but what would occur if you became too ill to work, or suffered an injury that prevented you from being able to carry out your necessary tasks? You could probably manage things for a short while, but like everybody else in the workforce, the time would eventually arrive when your incapacity to earn an income would bring with it dire consequences.

How does income protection help?

Income protection provides an ongoing benefit of 75% of your regular income if you are unable to work due to serious illness or injury. This benefit is usually paid monthly in arrears and can be used to cover expenses like everyday living costs, mortgage or rental payments, rehabilitation expenses and child education fees.

Make an enquiry in the form below to receive a quote for cover or continue reading to learn more of the benefits of taking out cover if you are a freelance worker.

Make an Enquiry for Income Cover if You are a Freelance Worker

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Details Features
Income Protection
Income Protection
Cover up to 85% of your income up to $10,000 per month if you can't work due to sickness or injury. Cover for over 1,000 jobs and full-time, part-time and self-employed.
  • Monthly benefit up to $10,000
  • Cover for applicants up to age 60
  • 30 day cooling-off period
Go to site More info
Income Protection
Income Protection
Receive up to 75% of your income each month to a maximum of $25,000 if you can't work due to serious illness or injury.
  • Monthly benefit up to $25,000
  • Available for applicants up to 59 years old
  • 21 day cooling off period
Go to site More info

Income Protection Caters for the Freelancers’ Belief in Independence

  • Choose income protection benefits
    When you take out the policy you will be asked to state a time when you want the benefits to start after you make a claim for being too ill or injured to work in your normal occupation as a freelancer. This could be a waiting period of as little as two weeks. It depends on your personal financial situation. If you have any other income stream, or how much you have put aside in savings to carry you over in such a situation. It is an important choice as the longer you are able to put off receiving benefits the lower will be your premium costs.
  • You also have to nominate how long you want the benefits to continue for if your recovery is slow
    Some freelancers choose periods of two or five years, others up to age 65. It will be a matter of personal choice as none of us know what the future holds but the longer the period you are covered for the more time you will have money coming in to pay your bills with and to manage your day to day living costs. Once again, this is an important decision, as the shorter the period you choose to have benefits paid, the lower the cost of your premium.
  • A further decision you will be confronted with will be the manner in which you want to pay your premiums
    There are two ways of doing this. The first is called stepped and the second is level. If you choose stepped your premium costs less initially but increases each year. It is the ideal way of paying if you don't want the cover for a long period. The other structure is called level because you to pay the same premium throughout the life of the cover. Right up to retirement age if that is what you have chosen.

Get a preliminary income protection for freelancers

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