Income Protection

Your ability to earn is your most valuable asset. Income protection replaces a proportion of your income if you're unable to work due to illness or injury — paying out until you recover or reach retirement age.

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How income protection works

Income protection provides a regular monthly payment if you're unable to work due to illness, injury, or disability. Unlike critical illness cover (which pays a one-off lump sum), income protection replaces your income for as long as you need it.

What's covered

  • - Physical illness or injury preventing you from working
  • - Mental health conditions (many policies cover these)
  • - Long-term conditions that gradually reduce your capacity
  • - Recovery periods following surgery or treatment

Key features

  • - Covers up to 50-65% of gross income
  • - Payments are typically tax-free
  • - Pays until recovery or retirement age
  • - Can claim multiple times during the policy

Why income protection matters

Most people insure their home and car, but far fewer insure the income that pays for both. Consider what would happen if you couldn't work for six months, a year, or longer:

  • Statutory Sick Pay is just £109.40 per week — could you live on that?
  • Employer sick pay typically runs out after 3-6 months
  • Your mortgage, bills, and family expenses don't stop because you're ill
  • Self-employed people have no employer sick pay to fall back on

Choosing the right deferral period

The deferral period is how long you wait after becoming unable to work before the policy starts paying. Choosing the right deferral period can significantly affect your premium:

4 weeks — short wait, higher premium Best if self-employed or no sick pay
13 weeks — moderate wait, moderate premium Good balance for most employees
26 weeks — longer wait, lower premium If you have 6 months' sick pay
52 weeks — longest wait, lowest premium If you have generous employer benefits

Frequently asked questions

How much of my income can I insure?
Most policies cover up to 50-65% of your gross income. This may sound low, but the payments are typically tax-free (if you're paying the premiums personally), so the net amount you receive is often closer to your normal take-home pay.
When does income protection start paying?
There's a deferral period before payments begin — typically 4, 8, 13, 26, or 52 weeks. The longer the deferral, the cheaper the premium. We'll consider your sick pay, savings, and other income to recommend the right deferral period for you.
How long does income protection pay for?
Depending on the policy, it can pay until you recover, until the policy term ends, or until you reach retirement age. Long-term policies that pay until retirement are the most comprehensive but also the most expensive. We'll help you find the right balance of cover and cost.
Is income protection the same as PPI?
No. Payment Protection Insurance (PPI) was a specific product linked to individual credit agreements. Income protection is a standalone insurance policy that replaces a proportion of your entire income — it's a much more comprehensive and valuable form of cover.
What counts as being unable to work?
Policies vary in their definitions. The best policies pay out if you can't do your own occupation — the specific job you do. Others may only pay if you can't do any occupation suited to your skills. We always recommend own-occupation cover where possible, as it provides the strongest protection.

Protect your most valuable asset

Book a free consultation and we'll help you find income protection that fits your budget and circumstances.

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