Protection · Income Protection
Income protection arranged for a self-employed tradesperson in a high-risk occupation category
A self-employed electrician had been unable to find income protection that would pay out at a reasonable premium. His occupation placed him in a restricted category for most insurers — meaning either inflated premiums, limited cover or outright refusal. We found a policy that provided the cover he actually needed.
Reviewed by Muhammad Asif · CeMAP qualified
1 January 2025
The Situation
Our client was a self-employed electrician in his mid-forties with no employed sick pay and no savings buffer beyond three months. He had a mortgage and two dependants. He had approached two insurers directly and been quoted premiums significantly higher than he expected, with one insurer offering a policy that excluded manual work entirely — which would have rendered it largely useless for his circumstances. He came to us wanting to understand whether better terms were available.
The Challenge
Occupation category is one of the most significant variables in income protection underwriting. Electricians are typically placed in a higher-risk occupation class than office-based professionals, which directly affects the premium and the policy terms. Some insurers apply an own-occupation definition — the policy pays if you cannot do your specific job — while others use a broader suited-occupation or any-occupation definition, which is far less favourable for a tradesperson because it requires total inability to work in any capacity before paying out. The difference between an own-occupation and suited-occupation definition, for someone in a manual trade, can be the difference between a policy that is genuinely useful and one that provides almost no real protection.
Our Approach
We compared the market specifically on occupation class, policy definition and premium for the client's age, income and occupation. We prioritised insurers offering an own-occupation definition for his trade category — which is available but not universal — and identified where the most competitive pricing sat within that subset. We also reviewed the deferred period options, modelling which combination of deferred period and monthly benefit would provide the right balance between premium cost and effective cover given his three-month cash reserve.
The Outcome
Income protection policy placed with an own-occupation definition covering his specific trade, at a premium below both quotes the client had previously received. The monthly benefit is set to replace 60% of his average net income from a 13-week deferred period. He now has genuine, usable cover in place rather than a policy that would have paid out only in extreme circumstances.
Outcome
Income protection policy placed with an own-occupation definition covering his specific trade, at a premium below both quotes the client had previously received. The monthly benefit is set to replace 60% of his average net income from a 13-week deferred period. He now has genuine, usable cover in place rather than a policy that would have paid out only in extreme circumstances.
This case study is anonymised. The outcome shown is specific to this client's individual circumstances and is not indicative of results in other cases. Your mortgage is not guaranteed until a formal offer is issued. Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage. Lockhart Murphy Ltd is authorised and regulated by the Financial Conduct Authority.
- income protection
- self-employed
- tradesperson
- high-risk occupation
- own-occupation definition
- protection
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