Key takeaways
- For the self-employed, the value of fast treatment is highest — no sick pay means every week off costs you.
- Private medical insurance covers speed of treatment; income protection covers your earnings if you can’t work.
- Cover can often be arranged tax-efficiently through a limited company — worth taking advice on.
When you’re employed, a spell of illness is cushioned by sick pay. When you work for yourself, it isn’t — if you can’t work, you don’t earn. That’s exactly why private health cover tends to be worth most to the self-employed.
Why it matters more when you’re self-employed
A three-month NHS wait for a scan or a minor operation is frustrating for anyone. For a sole trader or freelancer, it can mean three months of reduced or zero income. Private medical insurance gets you diagnosed and treated fast, so you’re back to work sooner.
Two types of cover to consider
- Private medical insurance — fast access to diagnosis and treatment, so illness keeps you out of action for as little time as possible.
- Income protection — replaces a portion of your income if you’re unable to work for a longer period, which is the bigger financial risk for many self-employed people.
Many self-employed people benefit from both — one gets you treated quickly, the other protects your earnings if something keeps you off work for months.
Keeping it affordable (and tax-efficient)
If you trade through a limited company, some cover can be arranged through the business, which may be more tax-efficient — though the tax treatment differs between personal and company arrangements, so it’s worth advice. Either way, a sensible excess and the right hospital list keep the premium in check.
When your income depends on you being well, cover that gets you back on your feet quickly pays for itself.
Get it right for your set-up
ComparePMI helps self-employed people compare private medical insurance and income protection across a wide panel of insurers. We don’t give advice or favour any insurer; if you’d like advice or decide to go ahead, we introduce you to an FCA-authorised firm who provides it and arranges your cover. It’s free and there’s no obligation.
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This article is general information, not personal advice. Cover, terms and availability vary by insurer and individual circumstances. ComparePMI is the trading style of ComparePMI Limited (company no. 16755241), an independent comparison and introduction service, not tied to any insurer. We do not provide advice or arrange cover ourselves and are not FCA-regulated; we introduce you to FCA-authorised and regulated firms who provide the advice and arrange your cover.