Meet Emma and David — Two Contractors, Two Very Different Outcomes

Emma’s Story – With Income Protection

Age: 48
Occupation: Project Management Contractor
Status: Self-Employed
Cover: Comprehensive Income Protection Policy (replacing 70% of income after a 4-week deferred period)

The Event

Emma develops a serious back condition that prevents her from sitting for long periods, making it impossible to carry out her day-to-day contracting work.

With Income Protection

• Week 1–4: Emma takes time off work on her GP’s advice.
• Week 5: Her income protection payments begin, replacing 70% of her usual contracting income (tax-free).
• She uses the payout to cover her mortgage, bills, and groceries; no need to dip into savings.
• The policy also provides access to rehabilitation and return-to-work support.
• Emma focuses fully on recovery, without worrying about finances.
• After 3 months, with physiotherapy and proper rest, Emma returns to work gradually, supported by her insurer’s vocational rehab team.

Result:

Emma maintains financial stability, protects her credit score, and avoids stress-related setbacks.
Her family life and long-term plans remain secure.

David’s Story – Without Income Protection

Age: 49
Occupation: IT Consultant (Contractor)
Status: Self-Employed
Cover: None — relies on savings

The Event

David suffers a similar back injury, leaving him unable to work for 3 months.

Without Protection

• Week 1: David stops working, no sick pay (as a contractor).
• He applies for Statutory Sick Pay, but as self-employed, he’s not eligible.
• He relies solely on personal savings.
• Monthly bills continue: mortgage, utilities, car payments, groceries.
• By month 2, savings are depleted. He uses credit cards to stay afloat.
• Financial stress worsens his recovery, leading to anxiety and delayed healing.
• After 3 months, David returns to work early, still in pain, because he can’t afford more time off.

Result:

David faces financial strain, debt, and delayed recovery — and it takes months to rebuild his finances.

The Outcome: Financial Resilience vs. Risk

Feature	Emma (With Income Protection)	David (Without)
Sick Pay (Contractor)	70% of income, tax-free	None
Waiting Period	4 weeks	Immediate loss of income
Bills & Mortgage	Fully covered	Paid from savings or credit
Stress Level	Low – focused on recovery	High – financial pressure
Recovery Time	Full recovery, supported	Rushed return, delayed healing
Financial Stability	Maintained	Depleted savings, possible debt
Peace of Mind	✅ Yes	❌ No

The Takeaway

For self-employed professionals, no work = no income.

With income protection, you can:

• Replace a portion of lost income (typically up to 70%)
• Cover essential bills and living costs
• Focus on getting better, not just getting by
• Maintain long-term financial stability and peace of mind

Without it, one illness or injury could undo years of hard work and savings.

On average musculoskeletal injuries, including fractures, make up 40% of Income Protection claims in the UK. Cancer 20% and mental health issues roughly 15% of all these claims.

Emma’s Perspective

“Knowing my income was protected allowed me to recover without fear. It felt like having a safety net under my entire life.”

David’s Reflection

“I never thought I’d need it. Now I realise how quickly things can change — and how costly that decision was.”

Secure Your Future Today

For contractors, income protection isn’t a luxury — it’s a lifeline.

Protect your earnings. Protect your lifestyle. Protect your peace of mind.

Speak to an expert