I am a self-employed software contractor through my ltd company. 90% of revenue from a single long term rolling contract based on a daily rate. My wife is the only other employee but not directly involved in the main contract.
Have gotten a quote for income protection insurance from Zurich that is primarily centred around my gross salary. Historically I have used the company as a buffer and adjusted my gross salary as needed, either in response to revenue changes or personal financial commitments. In addition I plan to start making larger pension contributions from the company which would technically reduce my gross salary(?).
This particular policy therefore doesn't seem all that useful to me as if I find myself having to claim in a year where I happen to have paid myself a lower salary then the benefit would also be reduced.
Perhaps more importantly, if I was to find myself out of work long enough that the contract was terminated I would have an even bigger problem going forward as wife's salary is supplemented by it.
Should I be looking for another insurance provider, different policy type, or accept that my salary fluctuations may result in a lower payout? In an ideal world the insurance would cover the contract itself as there is a direct correlation between out of work => not receiving daily rate.