Updated: July 30, 2019

Contractor Critical Illness Cover

Are you a contractor looking for critical illness cover? We'll look at the benefits of critical illness cover, and how to find the best policy for your needs

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Pete Mugleston

Author: Pete Mugleston - Mortgage Expert

Updated: July 30, 2019

Critical illness cover may be ideal for self-employed individuals such as contractors or sole traders because they may be missing out on health insurance benefits offered by a workplace.

In this article, we explain why it’s important to consider taking out critical illness cover if you’re self-employed, and discuss what factors you should consider before taking out a policy.

Why is critical illness insurance for contractors important?

One of the many advantages of being self-employed is the independence and freedom you have in your job. However, one of the drawbacks is that you don’t receive private medical insurance offered by over three quarters of UK employers.

What’s more, being solely responsible for running a successful business can prove incredibly stressful, what with the long hours, tight deadlines and going above and beyond for your clients to keep your business afloat.

All these factors can take a toll on your health, and can even lead to a lifestyle-related illness as time goes on. Depending on the severity, this could mean you find yourself in a position in which you are no longer able to work.

If you don’t have any form of health insurance in place, it’s important to ask yourself how you and/or your dependents would cope financially if you find yourself in this situation after being diagnosed with a critical illness.

Accident and critical health insurance

If you have a high-risk job (such as a roof tiler or delivery driver), critical illness insurance will not cover you in the event that you have an accident while on the job.

However, you can purchase accident and critical illness cover to help keep you afloat financially while you recover. For more information about getting accident and critical health insurance, make an enquiry today.

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How much will critical illness cover cost if I’m self-employed?

Unless you have a job which is deemed high risk, it is unlikely that you will be treated any less favourably than any other applicant. In other words, you shouldn’t expect to pay extra for critical illness cover because you’re self-employed.

Things that will impact the cost of your critical illness policy include the amount you want to be insured for, the type of cover, policy length, and a number of personal factors including age, medical history and lifestyle.

In a nutshell, the higher risk you are (i.e. the more likely you are to make a claim), the higher the premium will be. For example, the older you are when you take out a policy, the more you can expect to pay. The same applies if you’re a smoker.

As with any type of insurance policy, there’s no ‘one size fits all’ answer to how much your critical illness cover will cost, so the best advice is to speak to an expert who can discuss your individual situation and generate quotes tailored to you.

Is it a good idea to get contractor critical illness cover if I’m self-employed?

Yes, it may be a good idea to take out critical illness cover if you’re self-employed, though if you don’t have any dependents, and/or have sufficient savings to fall back on in the case of a diagnosis, you could look at other insurance types. Speak with an advisor for more information.

How much critical illness cover should I take out as a contractor?

If you’re thinking of taking out a critical illness insurance policy, there are a few factors you’ll need to consider which will help you calculate how much cover you’ll need and what you can expect to pay.

For example, if you have a partner, children or any other dependents which rely on your income, how much do they need to live on? How much is your mortgage or any other outstanding debts you have?

It’s also important to consider what state benefits you currently receive, and how a critical illness diagnosis will impact how much you/you and your family will receive in the future.

If you’re still not sure whether taking out a policy is right for you, or you want help in calculating how much your cover is likely to cost, get in touch.

The experts we work with can run through a series of questions with you to get an idea of your current situation and advise you on the best steps to take going forward.

Speak to an insurance expert about self-employed critical illness cover

If you’re self-employed and want to know whether it’s worth taking out critical illness insurance, or for bespoke advice on the most suitable type of cover for you, get in touch today.

The experts we work with will discuss your individual circumstances and requirements with you, and recommend the most suitable option for critical illness cover to suit your budget and your needs.

You can give us a call on 0808 189 0463 or submit an enquiry. We only work with experienced, accredited advisors, we don’t charge a fee, and you’re under absolutely no obligation to make a purchase.

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We can help! We know everyone's circumstances are different, that's why we work with brokers who are experts in critical illness cover. Ask us a question and we'll get the best expert to help.

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Pete Mugleston

Pete Mugleston

Mortgage Expert

About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

FCA Disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms that are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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