Nationwide launches income protection product for self-employed workers
The country’s biggest building society said it is launching the Illness and Injury insurance to protect people who do not have comprehensive sick pay through work.
Millions of self-employed and freelance people have seen their incomes shrink as a result of the pandemic but their situation is made even more dire by the fact that they don’t get paid if they don’t work.
The insurance covers 60 per cent of pre-tax monthly earnings, up to £2,000 a month, for 12 months. The policy would pay out monthly.
Research by Nationwide found a third of people (37 per cent) think having income protection in place is more important than it was prior to the pandemic, increasing to 51 per cent for those aged under 35. The biggest concern for people was how they would pay their mortgage or rent and provide for their family, if they could not work.
Darren Black, head of general insurance at Nationwide, said: “The pandemic has shone a light on the issues faced by many when they are unable to work due to illness. Many people have been kept up at night worrying about how they will keep a roof over their head and support their family.
“Our new Illness and Injury insurance will provide people with the peace of mind that should they be unable to work they will be able to maintain some of their income to pay their essential bills.”
The product is available to Nationwide members who currently have a current account, savings or mortgage with the building society.
Applicants must be aged between 18 and 55 and employed or self-employed working a minimum of 16 hours per week.