Just 7 per cent of self-employed people have cover in place if they are unable to work due to illness, Scottish Widows research shows.
The figure for the general population is 9 per cent according to the tenth instalment of the life assurer’s annual protection study, which is based on a sample of 5,161 adults.
The prospect of falling ill without the safety net of critical illness cover could potentially have dire consequences for households with two thirds of self-employed respondents stating their household is reliant on their income.
When asked about the consequences of losing their main income, one in five of self-employed individuals said they would not be financially secure at all while 12 per cent claimed they did not know how long they would be able to pay household bills if they or their partner were unable to work.
Just under a third (30 per cent) said they would not be able to rely on a single income.
Johnny Timpson, protection specialist at Scottish Widows, said: “Given the continued rise in the number of people who are self-employed in the UK today, this research unveils a worryingly uncertain picture for a significant proportion of the UK’s workforce.”
He added: “No one wants to think about disaster striking, but knowing that your family will not be left struggling will give you peace of mind and allow you to enjoy the many benefits that being self-employed brings.”
Adviser view
James Candow, financial adviser at Chepstow based Continuum, said: “The [7 per cent] figure does not surprise me because those who run a small business might think that they have more important priorities, but something like critical illness should be a high on their list of priorities. It is up to the adviser to make sure that these individuals see the importance and benefit of having critical illness cover.”
