Self-employed people's income protection plans are ‘unfair' according to Alan Lakey, partner at Highclere Financial Services.
Speaking at the Protection Review conference at London’s Café Royal on Wednesday, Lakey said self-employed customers should receive a £15,000 minimum income from their income protection plan.
He tells IFAonline it is ‘blatantly unfair’ most providers do not offer self-employed customers a minimum income while stay-at-home or ‘housewife’ customers can receive a £15,000 income if they become ill to pay for cleaning staff.
He says: “They’ve agreed to pay a house person [£15,000], why can’t they pay that to a self-employed person?”
Most income protection plans offer self-employed people a maximum income of 60%, which could equate to a significantly reduced sum after the plan is agreed if the customer’s income fluctuates.
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