Telford-based chartered financial planner, Gavin Roberts said people who had been employed for many years had had benefits such as death in service which would pay money to their family if they died while working.

But he warned many people who had made the transition from employment to self-employment had not considered the loss of potentially significant benefits for their family.

“Many employees have additional benefits such as the death in service lump sums and a pension scheme, which are lost when they become self-employed.

“It is great self-employment has reached record levels and people are setting up their own businesses and realising their long term dreams, but with that they are leaving behind benefits which potentially would ensure their family was looked after if anything happened to them,” Mr Roberts said.

“It is fundamental these people who have ensured they took advantage of all of the possible benefits previously, make sure they make the review of their financial situation a top priority.

“People may have other arrangements in place but it is vital they ensure they continue to have benefits and cover they need.

“People are unintentionally playing with their family’s future by failing to ensure they have the protection to maintain their family’s standard of living should the worst happen.

“They do not need to take this risk and can take some simple safeguarding actions to prevent any financial loss if anything should happen.”

Mr Roberts is an independent financial advisor and also a Fellow of The Personal Finance Society and is currently offering a free one-hour meeting for newly self¬employed people.

“As I have a wife and three young children it is something which is particularly close to my heart. I am running my own business but am fortunate enough to know the steps I can take to protect them for the future.

“I am sure anyone who has gone self-employed would hate to think their decision has put their family’s future at risk,” he said.