As a freelancer in the construction industry, your income is totally reliant on your ability to show up at the client's site every Monday morning. You lack the employer safety net of 'sick pay' that is enjoyed by permies but can replace these benefits through private provision called permanent health insurance (PHI).

Hardhatter had teamed with Contractor Financials, who specialise in financial service for contractors and are therefore able to taior their products and services to the specific needs of someone running their own small business.

In financial planning terms, contractors are pretty unique and Contractor Financials have sculptored their advice around a thorough understanding of the issues you face, including the way you're paid; potentially unstable markets; employment status issues; the possibiity you may go abroad to work for a short time.

Contractor Financials and Hardhatter can offer a reasonably costed plan that pays out after a single day's illness.

Any recommendation on the PHI front specifically is based around a couple of absolutely crucial factors - these will sometimes make the a plan more expensive on the face of it compared to other providers but ensures that the plan is a very comprehensive one. Unlike many other areas of a contractors finances where cost is sometimes the only consideration, with PHI the choice of company is very important, and you need to be certain that the policy is watertight in the event of a claim.

Ideally a policy will:

• cover both dividends and salary (many insurers exclude dividends )
• insure even short term contract workers
• cover you on an 'own' not the cheaper 'any' occupation basis. (Own occupation protects against an illnesses that stops you from specifically doing what you do now and where you do it. An important factor in the construction industry as many policies will suggest that you are fit enough to work elsewhere.
• offer guaranteed not reviewable premiums - otherwise the insurer can and will dramatically raise costs in light of future claims experience and price itself out of a liability
• has as few exclusions as possible, many plans have caveats and clauses that give insurers considerable scope to dodge their obligation. If you are ill the last thing you need is uncertainty or stressful court appearances trying to get what is legitimately yours.
• be with an insurer that has a excellent claims record of actually meeting obligations to clients
• has fair definitions of illness - where appropriate we favour a policy from an insurer that the British Medical Association use for their own members protection.
• costs inflationary increases (ie you benefit increases by RPI each year) on the age that you joined, no matter when the increase is applied ie if the extra benefit is actually applied in your 50s you are charged as if you are still your current age!

As a contractor, your entire lifestyle rests on the ability to be able to fall back on an income protection policy when you need it.

We've tried to give an overview of the issues concerning PHI. Please fill in the finder below and we'll get back to you with some tailored recommendations.

Income Protection/Permanent Health Insurance (PHI) "Finder"

Note: Investment Advice on this site is provided by Contractor Financials who are regulated by the Financial Services Authority (FSA).

Provided in association with Coulson Prichard Associates. To enquire about this service, use the form above. Or if you are unable to order online or require assistance, please call 01480 470220 and quote "Hardhatter offer".

Please read our Private Client Agreement