Freelancers working for umbrella companies might wish to take heed of advice just issued by the major insurance firm, Scottish Provident. Things may be fine whilst you’re drawing a regular income on the contractor payroll, but exceptionally difficult during lulls in employment. Scottish Provident recently conducted a poll revealing that 58% of Britons have no financial protection cover in place, should unemployment strike.
Of these, nearly one third admitted that they would be forced to make severe economies on living costs in the event of the family’s chief breadwinner being unable to work for a prolonged stretch of time. This is a statistic that rather confirms former US President Bill Clinton’s observation that many people are only one pay cheque away from poverty.
The survey also suggests that only 35% of the adult population presently have life insurance cover, whilst a mere 13% have critical illness cover. Just 9% of those polled have any from of income protection.
The chief reason offered by respondents for not having protection is cost; an obstacle that Scottish Providence believes is based on a widespread misunderstanding about both the range and relative costs of the products on offer. Commenting on the survey, the company’s head of marketing, Susan Barclay, said that large numbers of people are taking “substantial risks” with their livelihoods by failing to take out any from of protection. Freelancers are perhaps more vulnerable than many to experiencing bouts of unemployment between contracts. She suggested that they may want to start doing some serious research into the types and costs of cover available. It could be a lot more costly to go without.