VouchForMe’s Income Protection, an affinity group for Sole-traders

21.05.2020

An affinity group comprises of a group of people linked by a common interest or purpose. They can be social or professional, and for years insurance companies have offered cheaper and tailored insurance premiums for affinity groups. This week, we discuss how VouchForMe’s income protection builds on that concept, adapting it for the self-employed.

How Affinity groups work today

Traditionally affinity groups are large, automobile associations, employer-lead affinity groups, or university societies. This leaves little room for the self-employed, who are often hit with unaffordable or unsuitable premiums when looking for income protection. We think that this can change. Self-employed people tend to connect with other freelancers in the same industry, meaning they often have a similar risk profile and working hours. Why shouldn’t they be able to access insurance?

The Covid-19 pandemic has highlighted the importance of protecting your income. Affinity groups are expected to play a significant role in supporting their members through economic recovery for regular employees. VouchForMe’s income protection offers a platform for sole-traders to enjoy the same benefits. With VouchForMe, groups of sole-traders can band together to ensure that their income will be protected should one of them fall sick. By pooling a small part of your income each month, your community can build up a fund that covers your income, should you be unable to work. VouchForMe covers the administration and overlooks any claims, but your community is the one that covers you, rather than the insurance company.

Why is this better than traditional income protection insurance?

VouchForMe’s income protection puts you in control. When insurance companies offer a policy to an affinity group, the policy is based on algorithms. Even if you don’t claim if you’re deemed to be a higher risk next year, your policy price rises, utilizing VouchForMe’s social proof model, you can pick the people that you trust to be a part of your group, meaning the people who know you best, are those that support you. Best of all, by cutting out the insurance company middleman, there’s no premium! The money you put into the pot remains yours, and if no claims are made, you can withdraw your money and leave the group at any time.

We believe that self-employed workers should be able to access the same benefits as full-time employees. Nobody should be penalized by starting a business. Check out VouchForMe’s income protection and see how you can get all the benefits of affinity groups with self-employment.