Private Sick Pay for Self-Employed Carers

Sick Pay Cover - Is it worth it? Why It Matters (WIM): Private Sick Pay for Self-Employed Carers "Does anyone pay for private sick pay?" - If you're self-employed, you've probably seen the ads: "Protect your income" "Don't risk losing everything" "From just £X per month" And when you're a live-in carer earning weekly, the thought of having no income at all if you're ill is frightening. But here's what most carers don't realise: Private sick pay (income protection) is not always what you think it is. 1️⃣ First: What Do Self-Employed Carers Actually Get? If you're self-employed in the UK, you don't get: Statutory Sick Pay (SSP) Holiday pay Employer protection You may be able to claim: New Style Employment and Support Allowance (ESA) — but only if you've paid enough National Insurance Universal Credit (means-tested) Or nothing at all That's why income protection insurance is heavily marketed to us. 2️⃣ What Is "Private Sick Pay" Really? It's usually one of two things: A. Short-Term Income Protection Pays a weekly amount if you're signed off sick. BUT: Often only after a waiting period (4–8 weeks common) Many policies exclude pre-existing conditions Mental health cover can be restricted Some won't cover back pain (which… carers 🙃) B. Accident & Sickness Policies Cheaper. More limited. Often capped at low payouts. They may only cover: Hospital stays Accidents (not illness) Or very specific circumstances 3️⃣ Why This Matters for Carers As carers, we are: On our feet 14–16 hours Lifting Sleep deprived Exposed to infection Emotionally stretched The most common reasons carers are off sick? Back injuries Norovirus / flu COVID Exhaustion / burnout Ironically, some of those are the hardest things to get covered properly. 4️⃣ The Bit No One Talks About Let's say you earn £900 a week. You take out a policy that pays £600 per week. Premium: £45–£80 per month depending on age and health. Waiting period: 4 weeks. So if you're off sick for: 1 week → you get nothing. 2 weeks → you get nothing. 3 weeks → you get nothing. 4 weeks → you get nothing. 5 weeks → you get one week paid. Many short illnesses don't trigger a payout. That's not to say it's pointless — but it's not a magic safety net. 5️⃣ Smarter Questions to Ask Before You Buy Instead of asking: "Who do you recommend?" Ask: What is the waiting period? What exactly counts as being "unable to work"? Are lifting injuries covered? Is mental health covered fully? How long does it pay for? Is the payout taxable? Does it increase with inflation? Does it cover overseas illness (important for expat carers)? If you're commuting like many UK-based live-in carers who travel from abroad, this becomes even more important. 6️⃣ Alternatives (or Add-Ons) to Consider Some carers choose instead to: 🔹 Build a 4–8 week emergency fund Boring. Sensible. Powerful. 🔹 Increase weekly rate slightly And allocate £50–£100 per week into a "Sickness Buffer" account. 🔹 Join a friendly society Organisations like: Shepherds Friendly Society Holloway Friendly These sometimes offer more personal underwriting than big insurers. 🔹 Speak to a proper independent financial adviser Not someone selling one product. 7️⃣ The Hard Truth The real issue isn't insurance. It's that independent carers are carrying all the risk alone. Agencies get paid whether we're sick or not. Families still need cover. But the person physically doing the job? No safety net. That's why this matters. 8️⃣ So… Should You Get It? There isn't a universal answer. It depends on: Your savings Your health history Your age Whether you have dependents Whether you could survive 4–6 weeks without income ⚠️ What Income Protection Actually Provides ➡️ Most policies cover 50–65% of your income ➡️ Payments usually start after a waiting period (4–12 weeks) ➡️ Pre-existing conditions may be excluded or increase cost ➡️ Claims require medical evidence and approval ➡️ Not all claims are accepted What does it cost? Even rough ranges builds trust: For carers, policies can vary widely depending on age, health and cover level, but typical costs might range from: ➡️ £20–£80+ per month Always compare policies carefully. Is it worth it? It can be — especially if: You rely fully on your income You don't have savings to fall back on But it's not your only option: Emergency savings buffer Clear cancellation terms in agreements Planning gaps between placements The goal isn't just insurance It's financial resilience "Income protection isn't a safety net on its own — it's one piece of a bigger plan." For some carers, it's essential. For others, building a buffer fund makes more sense. But don't buy it because an advert scared you. Buy it because you understand it.