Insurance / Income Protection
Income Protection
Safeguard your earnings if illness or injury prevents you from working. Income protection insurance replaces a portion of your monthly income so you can focus on recovery without financial pressure.
Explained simply
What is income protection?
Income protection is a long-term insurance policy that pays a regular, tax-free income if you are unable to work due to illness or injury. Unlike critical illness cover — which pays a one-off lump sum for specific diagnosed conditions — income protection is designed to support you for as long as you are unable to work, up to the policy term.
Statutory Sick Pay (SSP) in the UK is limited and may not be sufficient to cover your mortgage, rent, and everyday outgoings. Many employed workers exhaust employer sick pay within a few months. For the self-employed, there is typically no sick pay at all. Income protection fills this gap.
The benefit is usually tax-free because premiums are paid from post-tax income. It is one of the most flexible and comprehensive forms of personal protection available, and can be tailored to your occupation, income level, and circumstances.
Key features
How the policy works
Monthly benefit payments
Rather than a one-off lump sum, income protection pays a regular monthly amount — typically up to 60–70% of your pre-incapacity earnings. This is designed to replace the income you rely on for day-to-day living costs.
Deferred periods
You choose a waiting period — usually 4, 8, 13, 26, or 52 weeks — before payments begin. A longer deferred period reduces your premium. Align this with any sick pay your employer provides or your savings buffer.
Short or long term
Short-term policies pay out for a defined period (commonly 1 or 2 years per claim). Long-term policies can continue paying until you return to work, or until the policy end date — which may be your selected retirement age.
Own occupation definition
The most comprehensive definition of incapacity. A policy pays out if you are unable to perform your own specific occupation, rather than requiring you to be unable to do any work at all. This is the definition to look for.
Suitability
Who needs it?
Income protection is particularly valuable for those who are self-employed, work in a physical occupation, have dependants, or carry significant financial commitments such as a mortgage. Without an income, those obligations do not pause.
Employed individuals should consider how long their employer sick pay lasts, and what happens when it stops. For many, a gap of even a few months without income could be difficult to manage from savings alone.
Our advisers will look at your employment status, income, outgoings, and existing protection to help you determine whether income protection is appropriate and, if so, what level of benefit and deferred period makes the most sense for your circumstances.
Get Started
Ready to get covered?
Speak to one of our advisers — no obligation, no jargon.