As a sole trader you have to ask yourself what your biggest asset is?  The answer should always be your income and your ability to earn it.  If you cannot perform the duties of your chosen occupation no one else will pay you.  FACT. Income Protection Policies (also known as permanent health insurance)

Many people feel that insurances can be and often are a waste of time and money but then there are those who also feel that a good insurance policy such as an income protection policy can be a good debt to have.  Income protection policies pay out when you cannot work.  These policies cover ANY type of illness or accident.  Usually the only exclusions are for acts of war, self inflicted injury in order to claim proceeds and failure to follow medical advice.  The most common claims on income protection insurance policies are for stress and back ache.

A sole trader income protection insurance policy should be seen as a part of your business plan as opposed to just another expense.  If liability insurance and office insurance make sense then so too should income protection insurance.

Income protection insurance should not be confused with life assurance.  The main purpose of life insurance is to pay out when you die so that your surviving relatives are provided for.  An income protection policy covers you when you are alive and thus indirectly covers your relatives too.  The merits of income protection insurance cannot be stressed enough when you are solely reliant on your income and your ability to earn it.