The life of a self-employed barrister offers many freedoms that come with standard self-employment. But with that freedom comes risk, particularly when it comes to your income.

Unlike salaried employees, most barristers do not benefit from sick pay as standard. An unexpected illness or injury can suddenly halt your earning potential, whether you’re in your first year of tenancy or approaching silk. State benefits are modest and unlikely to sustain the financial commitments and lifestyle of a practising barrister.

While many focus on insuring their homes, or taking out professional indemnity cover, income protection is often overlooked, until it’s too late.

Common claim causes for income protection include cancer, musculoskeletal disorders, and increasingly, mental health conditions such as stress and burnout, something all too familiar in the high-pressure environment of advocacy. These account for nearly 15% of all claims, according to LV,1 and reflect the unique challenges of the legal profession.

Without protection in place, the options can be stark: continue working through illness (potentially worsening your condition) or stop altogether with no income during recovery.

How does income protection work?

When does it pay out?

If you’re unable to work due to illness or injury covered by the policy, your policy will pay out a percentage of your gross income, typically between 50% and 70%, after a pre-agreed ‘deferred’ period (the waiting time before benefits start).

How long does it pay out?

You can choose a short-term benefit (1-5 years) or a long-term option that continues to pay until a selected retirement age (e.g., 65 or 70). The long-term option is especially relevant for barristers, where time out of practice can have a lasting impact on income trajectory.

Deferred period: what’s best for barristers?

Barristers often face a delay between stopping work and income ceasing, due to ongoing case payments. An income protection policy’s deferred period (the time before benefits begin) can range from one month to over a year.

Choosing the right deferred period should reflect your risk tolerance, available emergency savings, and aged debt. A shorter period increases premiums unnecessarily, while a longer one may lead to reliance on short-term credit or depletion of savings.

To strike the right balance between cost and practicality, it’s essential to speak with a qualified adviser who can tailor the deferred period to your specific circumstances.

How much cover do you need?

Start by covering your essential outgoings – your mortgage and key expenses. You can scale cover as your income grows, and many policies offer inflation-linked increases to maintain real value over time.

At Henry Dannell, we conduct annual reviews for our barristers to ensure your policy reflects your current income and evolving financial needs.

Why bespoke advice matters

Income protection is not a one-size-fits-all product, especially for barristers with fluctuating income. A specialist adviser who understands the nuances of your profession can help structure a policy that aligns with your working reality. Whether you’re early in your career, managing a growing caseload, or approaching judicial aspirations, income protection can be tailored to suit your evolving practice.

And if you have a pre-existing condition? Expert advice becomes even more crucial, as it can determine whether exclusions apply, or whether a better underwriting outcome is possible with a different insurer.

Why choose Henry Dannell?

At Henry Dannell, we work with barristers across all career stages to design tailored income protection policies. We understand the financial complexity of self-employment and the importance of uninterrupted income in sustaining both professional and personal commitments.

With access to whole-of-market insurers, we can secure competitive terms that reflect your specific needs, saving you the time and uncertainty of shopping the market yourself.

Whether you’re seeking new cover or reviewing an existing policy, we’re here to help.

Visit our Barrister Portal for expert insights and to book a consultation with one of our specialists.

Reference: (1) LV.com, ‘Income protection FAQs: What are the most common types of income protection claim you pay?’, 2024.