Income Protection Insurance
Safeguard your income if you're unable to work due to illness or injury. Combined with life insurance and critical illness cover, you create comprehensive protection for your family. Our income protection plans ensure you can continue to meet your financial commitments.
As with all insurance policies, conditions and exclusions will apply.
Content reviewed: 13 January 2026
What is income protection insurance and how does it work?
Income protection pays up to 70% of your salary if you can't work due to illness or injury. It covers conditions like back problems and mental health—not just critical illness. Payments continue until you recover or reach retirement.
Compare policies from leading UK insurers. Get a quote in minutes.
What is income protection insurance and how does it work?
Income protection insurance pays up to 70% of your salary if you can't work due to illness or injury—including common issues like back problems and mental health conditions. Unlike critical illness cover, it pays monthly until you return to work, reach retirement age, or the policy ends. Typical cost: £20-30/month for a 35-year-old earning £30,000.
Key Facts: Income Protection
- •Pays up to 70% of your salary if you can't work due to illness or injury
- •Own occupation policies protect your specific job, not just any work
- •Deferred period (4-52 weeks) affects premium—longer wait = lower cost
- •Self-employed people especially benefit—no sick pay to fall back on
- •Cover continues until retirement age, not just a fixed term
How Income Protection Works
Key Benefits
Replaces your income if you can't work due to illness or injury
Covers most illnesses and injuries, not just specific conditions
Payments continue until you can return to work or reach retirement age
Tax-free monthly income to cover your bills and lifestyle
Flexible options to suit your circumstances and budget
Can be used alongside other protection policies
How Much Income Protection Do You Need?
Calculate your monthly protection needs by adding up your essential expenses. If you couldn't work, these bills wouldn't stop.
Important: This calculator provides an estimate only. Income protection policies typically cover 50-70% of your gross income, not 100%.
Speak to our expert advisers for personalised guidance on income protection policies tailored to your circumstances, completely free of charge.
Helpful Guides
Everything you need to know about income protection insurance
Don't forget to account for any employer sick pay or savings you could use during the deferred period before payments begin.
Match this to your employer's sick pay period and any savings you have. If you get 6 months full sick pay, a 26-week deferred period could save you money.
Own occupation offers better protection and is particularly important for specialists, tradespeople, and professionals who rely on specific skills.
Even with employer sick pay, this often reduces after a few months. Income protection fills the gap and provides long-term security.
We can arrange cover based on your accounts, helping protect both your livelihood and business expenses if you can't work.
Claims are assessed by medical evidence. Payments continue until you can return to work, reach retirement age, or the policy term ends.
Protecting Your Income: Expert Tips
Essential guidance to help you choose the right income protection cover
Income protection is particularly important if you:
- • Have limited employer sick pay - Most companies offer only 1-3 months full pay
- • Are self-employed or a contractor - No sick pay whatsoever when you can't work
- • Have a mortgage or rent to pay - Bills don't stop when illness strikes
- • Support a family - Dependents rely on your income continuing
- • Have limited savings - Most couldn't survive 6+ months without income
- • Work in physical roles - Higher risk of injury preventing work
Sobering fact: Most people will experience illness or injury that prevents them from working at some point in their career. Don't assume it won't happen to you.
Deferred Period (Waiting Time):
How long you wait before payments start. Common options:
- • 4 weeks - Highest premiums, quick payout
- • 13 weeks - Popular choice, balances cost and protection
- • 26 weeks - Lower premiums, match 6-month sick pay
- • 52 weeks - Cheapest, for those with excellent employer benefits
Benefit Period (Payment Duration):
Usually continues until:
- • You return to work, or
- • You reach retirement age (60/65/70), or
- • Policy term ends
Tip: Match your deferred period to your savings plus employer sick pay to minimize cost while maintaining protection.
Mental health is now the leading cause of long-term work absence in the UK.* Quality income protection policies cover mental health conditions that prevent you from working.
*Source: Protection Guru / CI Expert
Commonly Covered Conditions:
- • Clinical depression and anxiety disorders
- • Work-related stress and burnout
- • Bipolar disorder and schizophrenia
- • Post-traumatic stress disorder (PTSD)
- • Severe OCD and panic disorders
What You'll Need:
- • GP or specialist medical evidence
- • Diagnosis and treatment history
- • Evidence you're unable to perform your job duties
Important: Not all policies offer equal mental health cover. We'll find insurers with comprehensive mental health protection built-in.
Employed Workers:
Coordinate with employer sick pay. Consider "own occupation" cover - pays out if you can't do your specific job (vital for specialists, surgeons, pilots, etc.).
Self-Employed & Freelancers:
No employer safety net makes this essential. Can cover:
- • Personal income (based on accounts/tax returns)
- • Business overheads (rent, utilities, staff costs)
- • Usually need 2-3 years' accounts for proof of income
Contractors & Temporary Workers:
Can be harder to arrange but specialist insurers exist. May need:
- • Contract history showing consistent work
- • Higher deferred periods (26-52 weeks typical)
- • Evidence of average earnings over time
We specialise in arranging cover for all employment types - even complex cases like portfolio careers or irregular income patterns.
Personal Policies (Most Common):
- • Premiums: Paid from after-tax income, no tax relief
- • Payments: Completely tax-free income when you claim
- • Benefit: Receive full amount with no tax deductions
Business Policies (Self-Employed):
- • Premiums: Can claim as business expense (tax relief available)
- • Payments: Taxable as business income
- • Trade-off: Lower premiums vs taxable benefits
Employer-Paid Policies:
- • Employer gets tax relief on premiums
- • Employee may pay tax on benefit received
- • Cover usually ends when you leave the job
Our advice: For most employed people, personal policies offering tax-free income provide the best value and security.
Understanding exclusions helps set realistic expectations and ensures you're not caught out when claiming.
Standard Exclusions:
- • Unemployment or redundancy - Not illness-related
- • Pre-existing conditions - Usually excluded for first 12-24 months
- • Self-inflicted injuries - Including drug/alcohol abuse-related
- • War, riots, or nuclear events - Force majeure exclusions
- • Elective cosmetic procedures - Unless medically necessary
- • Normal pregnancy - Complications may be covered
Additional Considerations:
- • Some policies have specific back/musculoskeletal limitations
- • Mental health may have stricter evidence requirements
- • Dangerous sports might need declaring or excluding
- • Criminal activities never covered
Key takeaway: Be honest in your application. Non-disclosure is the main reason for declined claims - not policy exclusions.
Our Trusted Insurance Partners
Access to leading UK life insurance and protection providers
Comparing quotes from top insurers to find you the best cover at competitive rates
Expert Guides & Provider Comparisons
Comprehensive guides covering income protection insurance, provider comparisons, and real-world advice from our specialists.
Loading success stories...
Review Your Existing Policy
Your income protection policy may be out of date. Upload it for a free expert review. We'll analyse your cover, compare it against current market options, and show you exactly what you'd get with a new policy today.
- ✓Deferred period comparison
- ✓Benefit definition analysis
- ✓Rehabilitation and return-to-work support review
- ✓Secure upload to Microsoft 365 (Azure UK)
Key Things That Change Between Policies
- • Deferred periods - 4, 8, 13, or 26 weeks - affects when payments start
- • Rehabilitation support - some providers excel at getting you back to work
- • Definition of disability - strict vs. own occupation vs. hybrid definitions
- • Benefit amount structure - fixed amount vs. percentage of salary
Related Topics
Protection Pricing Guide
Typical costs by age and what affects your price
Life Insurance
Protect your family with a lump sum payout if you pass away
Critical Illness Cover
Get a tax-free lump sum if diagnosed with a serious illness
Buildings Insurance
Protect your home's structure against damage and disasters