Adding Income Protection to a Self-Employed Client Conversation
A representative partnership case study showing how a specialist referral can address income protection for a self-employed client.
Reviewed by Sophie Evans, Commercial Director
Direct answer
The short version
A self-employed client may have no employer sick pay, so their ability to meet personal commitments can depend directly on continuing to work. A specialist referral can assess evidenced earnings, occupation, available savings, deferred periods and policy definitions without taking the original adviser away from their core planning relationship.
Key points
- Connect protection needs to the assumptions already used in wider financial planning.
- Understand the client’s trading structure and how earnings can be evidenced.
- Match deferred periods to savings and other realistic sources of support.
- Explain occupation definitions and benefit limitations in plain language.
Case study
The situation
An investment adviser is reviewing a self-employed client’s long-term savings. The client’s plans rely on continued monthly earnings, but no protection review has tested what happens if illness or injury stops them working. The adviser identifies the risk and introduces Simply Zest to complete a separate, advised protection assessment.
The partnership approach
Simply Zest establishes the client’s essential expenditure, income pattern, business structure and existing financial resilience. The advice considers how long the client could manage without drawings or earnings and which policy definitions align with the work actually performed.
The protection advice is kept distinct from the investment advice, while the shared objective remains clear: test whether the client’s wider plan is resilient if health interrupts their ability to earn.
Key technical points in the referral
Self-employed earnings can be less straightforward than a fixed salary. Provider rules differ, particularly for company directors, fluctuating profits and combinations of salary and dividends. The application and recommendation need evidence that supports the amount insured.
- Employment status and business structure
- Recent accounts and acceptable proof of earnings
- Day-to-day occupational duties
- Emergency savings and other household income
- Deferred period, benefit term and incapacity definition
- Affordability during stronger and weaker trading periods
The partnership value
The referring adviser can demonstrate that an important risk to the wider plan has been addressed by a specialist. The client receives advice focused on the practical details of self-employment, while each firm retains a clear scope and responsibility.
Quick answers
Frequently asked questions
Can company directors be considered for income protection?
Potentially, yes. The available cover and evidence requirements depend on the provider, business structure, remuneration and individual circumstances.
Does Simply Zest take over the wider client relationship?
No. The partnership is designed around a defined protection scope, with the original adviser retaining their core planning relationship.
What if the client’s income changes each year?
The adviser considers the evidence and provider rules available at the time. Cover should be reviewed if earnings or business structure change materially.
