Machinery, livestock and long days
Farm work combines tractors, quad bikes, power take-offs, bulls, ladders, grain stores and long hours in poor weather. Crush injuries, falls and accidents with animals can keep a farmer off work for months. Wear and tear on backs, hips and knees builds up too.
When you are the one doing the milking or the harvest, being off work affects the whole operation. You may need to pay contractors or relief workers just to keep the farm running.
Farmers often work well past usual retirement ages and keep doing physical tasks into their sixties and beyond. Insurers usually set a maximum age for income protection to end, so think about when you plan to step back when choosing the policy term.
Profits that move with prices, weather and harvest
Farm income can change sharply between years because of crop yields, livestock prices, input costs and weather. HMRC lets farmers average profits for tax to smooth this. Insurers take a similar long view and usually look at your share of profit across recent years.
Many farms run as family partnerships. Insurers will ask for your personal share of the profits, so have the partnership accounts and your tax return to hand.
Diversified farms with holiday lets, farm shops or contracting work have more than one income stream. Tell us about each, as some may continue while you are off sick and could affect how much income protection you need.
- Have recent farm accounts and your tax returns ready
- Tell us how the farm is owned: sole trader, partnership or company
- Describe your actual work, such as arable, dairy or mixed
How insurers class farm work
Insurers group occupations by claim risk, and hands-on farming sits in one of the higher manual classes. That affects price and the definition of incapacity. Some insurers may offer a suited occupation or activities-based definition in place of own occupation.
A farmer who mostly manages the business and leaves heavy work to staff may be classed differently. Tell the insurer what share of your time is manual, as this can make a real difference.
If full income protection proves expensive or comes with tight terms, short-term cover that pays for a few years per claim can still carry you through a broken leg or a long recovery after surgery.
Life cover, borrowing and the next generation
Farms often carry large loans for land, buildings and equipment. Life insurance can repay that borrowing if you die, so your family is not forced to sell. A policy written in trust pays outside your estate in most cases.
Agricultural property may qualify for inheritance tax relief, but the rules are detailed and change. Take advice from an accountant or solicitor on your estate, then use life cover to fill any gap they identify.
How Hi Tomorrow helps farmers
We describe your farm work accurately to insurers, so you are rated on what you do. We compare income protection definitions, look at short-term cover where full cover is costly and arrange life insurance with trust paperwork. We work alongside your accountant on the figures.