Welcome to dg mutual, specialist providers of Pure Income Protection insurance to the self-employed and professional business people.
If you’re self-employed you can avoid hardship when you’re unable to work if your income is protected by specialist insurance. If you’re covered by our policy it generates an income until you’re back at work or in the case of long term conditions up until the retirement age of 65, whichever comes first.
We are a trusted specialist insurance provider. Since 1927, for more than 80 years, DG Mutual has been one of the pioneers of insurance policies that pay out if you suffer ill health or an accident. As a mutual society, our policy holders become members and can expect an attentive level of service. We’re proud to have one of the highest pay out rates in this specialist field with more than 98% of claims paid for a wide range of conditions, whether physical or psychological.
If you’re self-employed you must rely on your own resources when you face hardship through sickness. Every day being incapacitated, for whatever reason, means lost income. The range of insurance alternatives has never been greater yet only one provides an ongoing income for the widest possible range of conditions: income protection insurance.
Pure Income Protection Insurance offers particularly good value relative to the pay-out rate and the wide ranging conditions covered. When selecting a policy you’re in control. You choose the level of income required and based on your age and the level of cover, you pay a monthly fee.
Anyone from the age of 16 to 55 may apply for cover of up to 66% of pre-tax income. Reassuringly multiple claims can be made with no loss of cover. Alternative policy structures are available – you choose the cover for your needs. Benefit can be paid from Day 1 of illness or injury or after your chosen deferred period. Even business professionals receiving some sick pay from an employer, find there is an income protection option for them.
Pure Income Protection is available direct from dg mutual. A No Obligation Quote is available, using the form provided.
Read More About How We Protect Our Clients
For the Self Employed
Reduce the risk of lost earnings if you're self employed or a contractor.
Frequently Asked Questions
All the income protection insurance questions you've been wondering about.
Annuity or pension drawdown?
The new pension freedom reforms give anyone who isn’t a member of a Defined Benefit Scheme, more flexibility in spending, saving and investing their pension pots. Previously, you had little choice but to buy an annuity. The problem here, as everyone knows, is that annuity rates are grim and are a relatively inflexible option. Some might say also, with annuity rates so poor, there’s been little encouragement to contribute to a pension. The new pension freedoms offer an alternative to annuities –pension drawdown schemes. These schemes keep a pension pot intact, and allow you to drawn down income as and when. Each time money is taken out, the first 25% is tax free. Research suggests most people are still primarily concerned about planning so that they have a reasonable income in retirement. Fears that people will blow their pensions on around the world cruises and the like, may turn out to be unfounded. But do the new reforms now mean annuities are a thing of the past? Well not quite. As with any investment decision, risk has to be factored into the equation. One reason annuity rates are so poor is that they provide a fixed income. In a sense the annuity provider is shouldering the risk. With pension drawdown schemes any remaining retirement pot will still be invested thus exposing retirement funds to the markets. Investments can go up or down. The 55% so called ‘death tax’ on remaining invested funds has also been abolished. An annuity can’t be passed down to beneficiaries but the unused portion of a drawdown fund can be. The differences don’t end there. As well as offering a fixed income, annuities also offer income for life. With a drawdown scheme there is a possibility an individual could run out of money. Annuities can also be enhanced for medical conditions. In the same way, a heavy smoker would get a better pay rate than someone with longer life expectancy. While annuity rates may be adjusted for inflation, a drawdown scheme offers the possibility of the retirement fund growing by more than inflation, although of course it may also go down. Some of the advantages of drawdown schemes have previously only been available to the wealthy. However drawdown schemes are more suitable for those with a pension pot of at least £30,000 or £40,000. An annuity can be purchased with any size of fund.
Employers with more than 250 employees will have to publish what they pay men and woman
New legislation will mean large employers with more than 250 employees will have to publish what they pay men and woman. Fines for non-compliance could be as high as £5000. Then there is the potential reputational damage. But there is hope more forward thinking employers will see equal pay is a lever to recruiting the highest calibre graduates, executives and professionals. Although the pay gap is narrowing and is now less than 10%, it is believed to be as high as 35% among professionals in their 40s. Currently the UK has the 6th largest pay gap between men and women in the European Union. Up until now publication of gender pay among larger companies has been voluntary with only 5 companies choosing to publish figures. The new legislation comes in largely at the behest of the Liberal Democrats who faced opposition from the Government. The Government’s position appears to be that the current arrangement is leading to action behind the scenes. Perhaps as many as 300 larger companies are analysing gender pay and taking action accordingly. Not surprising the new legislation, due to be introduced within the next 12 months, has been welcomed in many quarters, particularly by those who see transparency as key to developing change. The Liberal Democrats believe that armed with published data women can then challenge their employer on pay policy. Some reading this may wonder why it’s taken such a long time to produce the legislation designed to get companies to comply. Commentators believe more change is still needed. Non-equal pay often arises during the recruitment process, regardless of level. While the publication of gender pay provides one lever, recruitment and business culture may need to change too. If businesses can be persuaded to publish data, then going forward, then a pay audit may need to be put in place.
Pension Fraud Increase
From April 6, the over 55s can withdraw pensions savings and do as they please with the money. But pensions experts are keen to point out the new flexibility brings opportunities too: for fraudsters. The Government acknowledges the risks. It emphasises the importance of taking professional advice. But some think the Government needs to go further. Could more be done to protect savers? For example, it’s currently not illegal for someone to pose as a regulated adviser. Regulated in this instance would be an individual posing as someone regulated by the Financial Conduct Authority. In this sense it’s believed more regulation would balance the new freedom to move pension savings around. Previous fraudulent activity in pensions has centred on helping people “liberate” their pensions before age 55. Currently fraudsters are already cold calling people ahead of the new regulations. It’s not difficult then to see how some individuals might be at risk. Some are calling for the pensions’ industry, regulators and government to work together to find a solution. The Government is keen to promote its own service Pension Wise as the first port of call for people considering their options. It’s currently an offence for an individual to pose as a Pension Wise advisor. Pension Wise is free and impartial. Tools on the site are available to help people consider their options. In terms of the new provisions there are currently 4 alternatives. It’s possible to leave a pension pot untouched. At the opposite end of the spectrum it’s possible to take all the money out but only 25% will be tax free. Alternatively it’s possible to buy an annuity and you can take out 25% in cash tax free before buying the annuity. For those wanting regular income it’s possible to take out 25% of the whole pot then subsequent drawdowns of 25% of the remaining pot. They will all be tax free as long as you stick within the 25% limit. With so much flexibility and potential additional money available it’s easy to why people should be on the alert for fraudsters. The message from industry and the Government is simple. Don’t entertain cold callers and only use regulated advice.
Employed v Self Employed
Many of our clients are self-employed but not all. You may think the grass is greener on the other side. Whether you are currently working for yourself or an employer each has pros and cons. It’s also important to mention they are not mutually exclusive and neither is better than the other. It’s possible to prefer one over the other at different stages of your career. The security of having a regular salary coming in is one of the main benefits of opting for a job, where your role is more or less prescribed for you. The self-employed on the other hand have notoriously varied income. It can make personal financial planning tricky and it’s harder than ever before for the self- employed to get mortgages. Self-employment, at least on paper, offers more creative freedom to channel your skills and interests the way you choose. With a salary also come benefits and even a pension as well as more professional development opportunities. When you are sick, your employer will probably provide more than the statutory level of sick pay. Holidays are paid too. Being self-employed means making your own pension arrangements. In terms of professional development it can be harder to stay on top of developments in your field though in some areas CPD is compulsory. When you can’t work, you’ll be on benefits unless you have savings or have made other arrangements. Holidays can be expensive because when you’re not working you’re not earning. Employment may or may not bring more diverse work but you have less control over working hours. With self-employment you have more freedom to work where and when you want to, but pressure to bring in an income may leave you feeling more constrained than you had imagined. An underrated aspect of employment is the social side. Self-employment can be very isolating if you let it. Of course, if you opt for being your own boss you can minimise or do away with your commute altogether. For employees, commutes are time consuming, expensive and tiring. However the potential freedom and possibility of more time spent at home makes self-employment a popular option for some families. Childcare costs in the UK are among the most expensive in Europe but can be offset to some extent if you are lucky enough to enjoy a high salary. Like our blogs? Pop your email in the box below and we will keep you updated