Why it matters
One long illness can undo years of work when you're self-employed. The point of protection isn't to sell you cover — it's to make sure that if the worst happens, your income and family aren't the casualty.
Financial guidance
Protection & income cover for sole traders
No sick pay, no death-in-service, no safety net — that's the reality for most sole traders. This guide explains the main types of protection (income protection, life cover and critical-illness cover) and when each tends to matter.
The short answer
Because sole traders usually get no sick pay or employer benefits, protection matters more, not less. Income protection replaces earnings if you can't work; life cover and critical-illness cover protect your family or business partners. A regulated adviser sizes it to your real needs.
The basics
In plain English
- Income protection — replaces earnings if illness or injury stops you working
- Life insurance to protect your family or mortgage
- Critical-illness cover for a lump sum if you're seriously ill
- Family income benefit and mortgage protection
- Cover sized to your real commitments, not a call-centre default
How to get regulated advice
If and when you want it
- 1Understand the basics
This page explains, in plain English, what this area involves — so you know the questions worth asking.
- 2Find an authorised adviser
Regulated advice can only come from an FCA-authorised firm. You can search the FCA register, or ask us for an introduction to Equity & General, the firm we have an introducer agreement with.
- 3No obligation
Any introduction is optional and free. If you go on to take advice, the adviser explains any fees before anything goes ahead.
Common questions
Straight answers
What is income protection?
A policy that pays you a regular income if you can't work due to illness or injury — vital for sole traders, who typically get no sick pay. A regulated adviser recommends the right type and level.
Do I need life insurance if I'm self-employed?
If anyone depends on your income — a family, a business partner, a mortgage — then usually yes. A regulated adviser can help you work out what cover, if any, you need.
Isn't protection expensive?
Often far less than people expect, especially arranged young and healthy. And the cost of no cover, if something happens, is your income. A regulated adviser finds cover that fits your budget.
General information only. This page explains a topic in general terms. It is not advice, a personal recommendation or a financial promotion, and it does not invite or encourage you to buy any product or service. Everyone's circumstances are different.
Regulated financial advice can only be given by a firm authorised by the Financial Conduct Authority — you can find one on the FCA register (register.fca.org.uk). Buzz Accounting is not authorised to give regulated financial advice. We have an introducer agreement with Equity & General (E&G), authorised and regulated by the FCA (No. 474163); if you would like, we can introduce you — that is entirely optional and there is no obligation.
The value of investments and any income from them can fall as well as rise, and you may get back less than you invested. Your home may be repossessed if you do not keep up repayments on a mortgage. Tax treatment depends on your individual circumstances and may change. Will-writing, trusts and some estate-planning services are not regulated by the Financial Conduct Authority.
