Many freelancers on contractor payroll enjoy a relatively good standard of living.  However, new research suggests that, too few have thought deeply enough about the financial crisis which may befall them should they become too ill to work.

Presently, just under a quarter (23%) of working adults are covered by this form of protection, according to a new study by  Worryingly, as many as 20% of those polled believed that they would be able to survive on state benefits and employer payouts in the event of a serious illness.  This is a serious error of judgement; the average weekly expenditure for UK households is currently £471, whilst statutory sick pay is barely a sixth of that, at £71.15 per week.

A smaller number of respondents (4%) clamed that they would be able to get by on their savings.  But again, they may be vastly underestimating the amount of money needed to survive during a prolonged period of illness.  The vast majority of Britons (70%) have savings of less than £5,000.

Commenting on the findings, Head of Life Insurance at, Matthew Lloyd, urged those without cover to think seriously about taking out adequate protection without delay.  Worrying about finances when the priority ought to be focussing on health can be deeply distressing and everyone really ought to consider how they would manage should a significant illness strike.

According to, critical illness cover, the average payout from which is £73,194, will frequently cost as little as £5 per month.  Whether freelancers work for umbrella companies or through their own limited companies, this is one form of insurance that perhaps really ought to be seen as a necessity rather than a luxury.

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