Why do I need protection?  

If you have an injury at work, or develop a serious condition and couldn't work, do you have savings in place to continue to meet your financial commitments? How long would they last? 
If your salary provides a significant contribution to the family finances, have you thought about how they would cope financially if you were no longer around? 
Fortunately there are a number of insurance policies designed to provide you with peace of mind that should things unexpectedly not turn out as planned, both you and your family can be adequately protected. 

Income Protection  

Given that SSP isn't available if you are self employed and Universal credit can be as low as just £368.74 per month (single person over 25 from 2023), if you are unable to work due to injury or ill health you could struggle financially to support yourself. 
Income Protection offers financial support against loss of earnings due to illness and injury. If you can't work for medical reasons, income protection will ensure that you continue to receive a regular monthly amount to cover commitments.  
Taking out income protection would ensure that your commitments are met should you not be able to drawn an income from self employment due to health reasons. 

Critical illness cover  

Critical illness cover would ensure that if you were diagnosed with a specified critical illness which is likely to impact your ability to work, you will receive a lump sum payment.  
This could be used for financial support whilst you recover, for example paying off the outstanding debt on a mortgage, or could be used for medical treatment not available on the NHS. It could also be used for making adjustments to your home in the event of disability. 

Term Assurance  

Term assurance would ensure that your family are protected in the worst case scenario. If your partner or family are reliant on your income to support the household, and you are no longer there, term assurance can provide a lump sum payment to pay any outstanding debts, the mortgage, living costs, education etc. 
Taking out adequate cover can give you the peace of mind that if anything were to happen to you, your family will be looked after.  

Relevant life  

If you run your own Ltd company, there are potential tax efficiencies by taking out a Relevant life Insurance policy. A personal life policy (term assurance) is paid out of taxed income, whereas a company Relevant Life policy can be offset against your corporation tax as an allowable expense with no benefit in kind payable. 
Relevant Life Insurance allows a small business to provide their employees with Death in Service (DIS) benefits outside of group life arrangements. In the event of the death of the insured, a lump sum is paid to the employee's beneficiaries. 
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