5 Questions to Ask Before You Buy Contractor Sickness Insurance

Health Insurance Agent

Contract work means tight deadlines, constant client interruptions and updates, and vulnerability to a lot of risks. It was reported that employers lose about 1.4 million workdays every year due to sickness.

While you do what you love as a contractor, you are also subject to the risk associated with sickness. A Contractor Sickness Insurance cover is a must-have to mitigate these risks.

Here are the top five questions about this insurance, answered for you:

What is Contractor Sickness Insurance?

Contractor Sickness Insurance is an insurance plan designed specifically for those who undertake contract work for their living. The insurance plan ensures that you receive a monthly income when you are sick and unable to work.

These insurance policies are tailored to meet your specific needs. At the time of getting the insurance policy, you can decide how much you want to receive each month in case of being unable to work due to sickness.

Why do I Need it When I Have Savings?

While full-time employees receive the benefits of insurance cover from their employer, a contractor does not have that luxury. Sickness insurance is a plan designed to meet your insurance needs as a contractor.

Hospital bills have a way of eating into your savings quickly. You may have a small term illness and end up spending your entire savings on treatment. An insurance cover is a better idea as your corpus builds up over time, and it does not poke a huge hole in your savings.

Won’t the Employment and Support Allowance (ESA) Kick in?

The ESA is a tedious and lengthy process with a low success rate. Even if your application does get approved, it has a maximum payout of £110.75 per week. Is that enough to cover you for the month?

Choose a plan that protects about 70% of your gross income. So, you will be able to meet your essential obligations, such as rent, mortgage, utilities, and groceries.

What Benefits Does it Provide?

There are numerous benefits that the Contractor Sickness Insurance policy provides. Here’s a list of them:

  • Tailor-made to meet your specific requirements
  • You choose the amount you want to receive each month
  • Offshore and overseas contract work covered
  • Deposit of insurance payments directly to your bank account until the time you are unable to work due to sickness
  • Few policies also provide a lump sum of money in case of death due to sickness

Does it Include Contract Work Abroad?

Usually, Contractor Sickness Insurance covers are tailor-made. So, if you work overseas very often, then you can make sure that you include that clause in the policy. This means that if you are working abroad on contract and fall sick, you will receive the same benefits as you will while working in your home country.

Nobody likes to get sick, but it is a fact of life and needs to be factored into your plans. If you are a contractor, it becomes all the more vital that you plan for it as you do not have the benefit of your employer’s insurance coverage. The Contractor Sickness Insurance cover is the plan for you. It ensures that you receive a predetermined monthly income while you are sick. This will allow you to meet your monthly obligations even when you are unable to work.