Protecting your Financial Future
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If you were off work for two weeks or so, how would your income be affected? If you are employed, your employer would probably continue to pay all or at least most of your salary. It is a rather different situation if you are self-employed. Although the slow process of invoice payment could mean that you would suffer no immediate loss of cashflow, the chances are that there could be an income hiccup down the line.
Ask yourself what would happen to your income if you were unable to work because of accident or illness for two years. The picture would be drastically different. Your employer's sick pay might well stop after six months or a year, leaving you to rely on long-term Incapacity Benefit from the State. If you are self employed, two years of incapacity might mean you will have no business left and you would also rely on long-term Incapacity Benefit (currently a basic - and - taxable - £67.50 per week).
