Self-employed people’s income protection plans are unfair says Alan Lakey, partner at Highclere Financial Services.
Speaking at the Protection Review conference, he said self-employed customers should receive a £15,000 minimum income from their income protection plan.
He argues that it is blatantly unfair that insures do not offer self-employed customers a minimum income while stay-at-home or housewife customers can receive a £15,000 income if they become ill to pay for cleaning staff.
Most income protection plans offer self-employed people a maximum income of 60%, which could equate to a significantly reduced sum after the plan is agreed if the customer’s income fluctuates.
Income protection: News update: July 2007