Private Health Insurance for the Self-Employed: A Practical Guide

When you’re employed, a spell of illness is cushioned by sick pay. When you work for yourself, it isn’t — if you can’t work, you don’t earn. That’s exactly why private health cover tends to be worth most to the self-employed.

Why it matters more when you’re self-employed

A three-month NHS wait for a scan or a minor operation is frustrating for anyone. For a sole trader or freelancer, it can mean three months of reduced or zero income. Private medical insurance gets you diagnosed and treated fast, so you’re back to work sooner.

Two types of cover to consider

• Private medical insurance — fast access to diagnosis and treatment, so illness keeps you out of action for as little time as possible.
• Income protection — replaces a portion of your income if you’re unable to work for a longer period, which is the bigger financial risk for many self-employed people.

Many self-employed people benefit from both — one gets you treated quickly, the other protects your earnings if something keeps you off work for months.

Keeping it affordable (and tax-efficient)

If you trade through a limited company, some cover can be arranged through the business, which may be more tax-efficient — though the tax treatment differs between personal and company arrangements, so it’s worth advice. Either way, a sensible excess and the right hospital list keep the premium in check.

When your income depends on you being well, cover that gets you back on your feet quickly pays for itself.

Get it right for your set-up

We help self-employed people compare private medical insurance and income protection across the whole market, and structure it in the most sensible way for how you trade. Free, impartial and no obligation.