Income Protection Deferred Period Explained
Direct Answer
The income protection deferred period is how long you wait before your income protection starts paying out. Options range from 4 weeks to 52 weeks. Match it to your sick pay—if you get 3 months from your employer, choose a 13-week deferred period. Longer waits mean lower premiums, but you need savings or sick pay to cover the gap.
Common Deferred Period Options
| Deferred Period | Premium Impact | Best For |
|---|---|---|
| 4 weeks | Highest cost | Self-employed with no savings |
| 8 weeks | High cost | Limited sick pay |
| 13 weeks | Medium cost | 3 months sick pay |
| 26 weeks | Lower cost | 6 months sick pay |
| 52 weeks | Lowest cost | 12 months sick pay or savings |
How to Choose the Right Deferred Period
Follow these steps to select the best deferred period for your situation:
Step 1: Check Your Sick Pay
Ask your employer how long they pay full sick pay, then reduced pay. Many offer 3-6 months depending on length of service.
Step 2: Calculate Your Emergency Fund
How many months of expenses could you cover from savings? This provides a safety buffer during the deferred period.
Step 3: Match the Deferred Period
Choose a deferred period that starts when your sick pay and savings would run out. If you have 3 months' sick pay and 1 month's savings, a 13-week deferred period might suit you.
Premium Impact by Deferred Period
To illustrate how much deferred periods affect cost, here's an example for £2,000/month cover until age 65:
Example: 35-year-old non-smoker, £2,000/month cover
- 4-week deferred: ~£60/month
- 13-week deferred: ~£40/month (33% saving)
- 26-week deferred: ~£32/month (47% saving)
- 52-week deferred: ~£25/month (58% saving)
Indicative prices only—actual premiums depend on health, occupation, and provider.
Special Considerations
Self-Employed Workers
Without employer sick pay, self-employed people often need shorter deferred periods (4-8 weeks). However, if you have substantial savings or passive income, a longer period can reduce costs significantly.
Linked Claims
Most policies include a "linked claims" feature. If you're ill, recover, then become ill again with the same condition within 12 months, you don't restart the full deferred period. This protects you from repeated waiting times for recurring conditions.
Day One vs Deferred
Some policies offer "day one" cover for accidents (paying immediately) but a deferred period for illness. This can be a cost-effective compromise.
Frequently Asked Questions
What is a deferred period in income protection?
The waiting time between becoming unable to work and when your policy starts paying. Options typically range from 4 weeks to 52 weeks. Longer periods mean lower premiums.
What deferred period should I choose?
Match it to your sick pay. If you get 6 months from your employer, choose a 26-week deferred period. Self-employed with no sick pay? Consider 4-8 weeks but ensure you have savings to cover the wait.
How does deferred period affect premium costs?
Significantly! A 52-week deferred period might cost 40-50% less than a 4-week period. Choose the longest period you can afford to self-fund.
Related Topics
Content reviewed: January 2026
CeMAP awarded by The London Institute of Banking & Finance. Cert CII (MP) awarded by the Chartered Insurance Institute.
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