Why CIC is especially important for the self-employed
Employed workers may have employer sick pay, death in service benefit, and group protection schemes. Self-employed workers have none of these. If you're diagnosed with cancer, have a heart attack, or suffer a stroke, the only income you'll receive is from your own savings or insurance.
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Get a Free Quote →How much CIC should the self-employed have?
A good starting point for self-employed people:
- At least 12–24 months of net business profit — to keep the business and household afloat during recovery
- Full mortgage balance — to eliminate housing risk
- Private medical treatment costs — access to faster treatment can speed recovery and your return to work
CIC combined with income protection
The self-employed should consider both CIC and income protection. CIC provides a lump sum on diagnosis of a serious condition. Income protection provides ongoing monthly income for a wider range of conditions. Together they provide comprehensive financial protection.
What's the cost?
A healthy self-employed 38-year-old can typically get £200,000 of CIC for £60–£100/month — a small fraction of the financial loss a serious illness would cause without it.
Frequently Asked Questions
No — personal CIC premiums are not tax-deductible. However, the payout is completely tax-free.
There is no direct equivalent of executive income protection for CIC. Most self-employed people take out CIC personally rather than through their business.