What Would You Live On If You Couldn't Work?
Income protection insurance pays you a monthly income — typically 50–70% of your earnings — if illness or injury stops you working. Essential if you are self-employed or lack employer sick pay: Statutory Sick Pay is just £123.25 per week (2026/27), and self-employed people receive nothing at all.
If illness or injury stopped you earning tomorrow, how long could you survive on savings alone? For most people: 3–6 months at best.
We help you understand whether income protection is right for you — before comparing policies, premiums, or providers.
No obligation · FCA regulated advice · Whole-of-market protection advice
£123.25
SSP per week
79%
Claims paid*
£209m
Paid out in 2025*
50–70%
Income replaced
*Individual income protection, ABI Protection Statistics 2025.
“Income protection isn't a luxury — it's the foundation of financial security. Before you compare quotes, let's work out whether it should be your priority.”
Start with your income
You came here because you're thinking about what happens if you cannot work. The review starts there. If you want, you can also include serious illness or what happens if you die.
You'll start with a review of your existing protection. We'll only discuss new cover if we identify a gap that's worth exploring.
Adviser-led financial exposure review — not a product quote or comparison.
What happens next?
- Complete your Protection Review.
- One of our advisers reviews your existing protection.
- If appropriate, we'll arrange a convenient phone or video appointment.
- We'll explain any gaps we identify before discussing whether any changes are needed.
Verified Client Reviews
Arranged Last 12 Months
Experience
Reference: 989177
Finance made easy.
Your Protection Journey
See where this cover sits in your wider protection plan — each layer protects something different.
- Step 1
Life Insurance
Protect your family's future if you die.
- Step 2
Critical Illness
Protect against serious diagnosis while you're alive.
- Step 3You are here
Income Protection
Protect your monthly income if you cannot work.
- Step 4
Family Protection
Bring life, CI, and IP together for your household.
- Step 5
Business Protection
Cover directors, shareholders, and key people.
Access to a wide range of UK protection insurers
We always review your existing protection first. Where new cover is appropriate, we'll compare suitable options from a wide range of UK protection insurers to help find the right protection for your circumstances.
…and access to many other leading UK protection insurers.
- Access to a wide range of UK protection insurers
- FCA regulated advice
- Existing protection reviewed first
Why Clients Use Your Home Finance for Income Protection
Specialist protection advice — not a generic insurance comparison site. We focus on whether cover fits your income, occupation, and household commitments.
30+ years' experience
Long-standing advice across protection, mortgages, and complex incomes.
FCA regulated
Authorised advice with clear accountability — reference 989177.
Whole-of-market protection
We compare insurers for fit, not just the household names.
Personalised to your life
Income, mortgage payments, family bills, and employer sick pay — mapped honestly.
No-pressure process
Understand whether IP is right for you before any application.
Review of existing cover
We check whether you are duplicating cover or have gaps alongside life and critical illness.
Who Needs Income Protection Most?
IP isn't for everyone. But for these groups, it's often the most important cover you can buy.
Self-Employed & Directors
No employer sick pay means no safety net. If you stop working, your income stops immediately.
Priority: Critical
Main Income Earners
If your household depends on your earnings for bills, rent, or mortgage payments, losing income would be devastating.
Priority: High
Minimal Employer Sick Pay
Many employers only offer SSP or a few weeks' full pay. After that, you're on your own.
Priority: High
SSP vs Employer Sick Pay vs Income Protection
Most people overestimate how long employer support lasts — and underestimate how little Statutory Sick Pay actually provides.
| What you get | Statutory Sick Pay | Employer sick pay | Income protection |
|---|---|---|---|
| Monthly income support | £123.25/week (Statutory Sick Pay, 2026/27) | Often 1–6 months full or partial pay — varies by employer | Typically 50–70% of your pre-illness income |
| Long-term protection | Up to 28 weeks only | Usually weeks to a few months | Can continue for years depending on policy |
| Helps cover mortgage, rent & bills | unlikely | partial | |
| Based on your income | partial | ||
| Personalised to your occupation | |||
| Can pay until recovery or policy end |
Employer sick pay and policy terms vary. Income protection payouts depend on policy type, deferred period, and medical underwriting.
What Happens When Income Stops
A typical timeline if illness prevents you working — and where income protection fits.
- Week 1–4
Sick pay runs out fast
SSP or short employer pay may cover basics — often not your full outgoings.
- Month 2–3
Savings under pressure
Mortgage, rent, utilities, and family costs continue. Stress affects recovery.
- Month 4–6
Hard choices
Many households face arrears, credit use, or returning to work before they are ready.
- With IP
Income continues
After your deferred period, monthly benefit helps cover bills while you focus on getting well.
What Happens Without Income Protection?
When serious illness strikes, the financial pressure compounds the health crisis.
Bills and commitments pile up
Without income, rent, mortgage, and household costs become impossible to sustain for long.
Savings depleted fast
For most households, savings cover a few months' outgoings at best. Then what?
Pressure to return too early
Financial stress forces people back to work before they've recovered, risking relapse.
With IP: Bills covered while you heal
Monthly payments replace income — helping cover mortgage, utilities, and essentials.
With IP: Focus on recovery
Less financial pressure means you can take the time you need to get properly well.
With IP: Pays until you're ready
Good policies pay until you recover, retire, or reach policy end — not just 12 months.
How Income Protection Works
A straightforward four-step process — from understanding your income to having cover in place.
Tell us about your income
Employment, self-employment, sick pay, bills, and what you need to protect.
Match cover to your situation
Deferred period, benefit level, and occupation definition — aligned to how you actually earn.
Compare whole-of-market options
We shortlist insurers that fit your trade, health, and budget — not a single bank product.
Claim with support if illness strikes
If you cannot work, your policy pays a monthly income after the waiting period — often until you recover or reach policy end.
Income Protection Decision Tools
Work out cover level, deferred period, and how IP fits alongside critical illness.
How much IP do I need?
Work out a realistic monthly benefit based on bills and outgoings.
Read guideIP vs critical illness
Monthly income versus lump sum — what fits your situation?
Compare optionsChoosing a deferred period
Match your waiting period to employer sick pay.
Read guidePopularSelf-employed IP
Essential cover when you have no employer safety net.
Explore optionsIs Income Protection Right for You?
Income protection is often the first building block of a good protection plan. Before comparing policies, find out where it fits in your priorities.
You'll start with a review of your existing protection. We'll only discuss new cover if we identify a gap that's worth exploring.
No obligation · FCA regulated · Whole-of-market advice
Common Income Protection Mistakes
These errors cost people money or leave them underprotected when they need cover most.
Buying short-term cover without realising
Many budget policies only pay for 12–24 months per claim. Better than nothing — but if budget allows, full-term cover protects you through serious long-term illness.
Wrong deferred period
If you have employer sick pay, match your deferred period to when that ends — avoid paying for cover you cannot use yet.
Not checking occupation class
Some insurers charge more for your job or exclude your occupation entirely. Always check multiple providers.
Buying through banks
Bank policies often have limited definitions and poor own-occupation cover. Get advice to find better options.
Protecting Your Income and Mortgage
Income protection keeps your earnings flowing if you cannot work. Where you have a mortgage, the right cover helps protect those payments too.
Income protection for mortgage payments
Keep your home secure if illness stops your earnings.
Self-employed income protection
Cover when you have no employer sick pay.
Company directors
Salary, dividends, and retained profit structures.
Critical illness vs income protection
Monthly income vs lump-sum cover — what fits you.
Income Protection Guides
Authority guides — adviser decision support
Which insurer fits your situation — not generic definitions.
Income Protection for Company Directors
Salary, dividends, retained profits, insurer matching, and claim-stage reassessment.
Salary & Dividend Income Protection
Can dividends count? How insurers calculate director cover.
Best IP for Self-Employed
Insurer fit by trade — Exeter, LV=, British Friendly, Zurich, Cirencester.
Understanding Income Protection
Self-Employed & Contractors
Self-Employed Income Protection
Essential cover when you have no employer sick pay — including which insurers suit your trade.
Company Directors IP
Flagship guide for Ltd company directors.
Salary & Dividend IP
How dividends count towards cover.
Contractor Income Protection
Specialist cover for IR35 and contract workers.
Comparisons
Costs & Claims
How Much Does IP Cost?
Typical UK premiums by age, occupation, and deferred period.
When and How Long Does IP Pay Out?
What triggers a claim, and short-term vs long-term payout periods.
Deferred Period Explained
4, 8, 13 or 26 weeks — choosing your waiting period.
Is IP Tax Deductible?
Premiums, directors, and self-employed tax rules.
Which Is the Best IP?
Compare policies by situation — not brand rankings.
Are IP Payouts Taxable?
Tax treatment when you claim.
Special Circumstances
IP and Redundancy
Does standard IP cover job loss? ASU alternatives explained.
What IP Doesn't Cover
Redundancy, unemployment, and common exclusions.
IP Pre-Existing Conditions
Getting cover with existing health conditions.
IP Mental Health
Mental health coverage and claims.
IP for Mortgage
Protect your mortgage payments.
Group Income Protection
Employer-sponsored schemes for staff and directors.
Income Protection Questions, Answered
The questions clients ask most before deciding — including what it costs and how often claims are paid.
What is income protection insurance?
Income protection insurance pays you a monthly income if you can't work due to illness, injury, or disability. Unlike critical illness which pays a lump sum, income protection provides ongoing payments—typically 50-70% of your salary—until you recover, retire, or your policy ends. It's designed to replace your earnings when you need them most.
Is income protection worth it?
For most working people with financial commitments—mortgages, rent, bills, or dependents—income protection is worth considering. Ask yourself: could you survive financially if you couldn't work for 6 months or longer? Statutory Sick Pay is just £123.25 per week (2026/27), and the self-employed get nothing at all. If that wouldn't cover your bills, income protection fills the gap.
How much does income protection cost?
Costs depend on your age, health, occupation, smoker status, and how much cover you need. As a guide, a 35-year-old non-smoker in an office job might pay around £20-40/month for £1,500 monthly cover; riskier occupations like construction pay more. Longer waiting periods (deferred periods) reduce premiums—choosing 12 weeks instead of 4 weeks can roughly halve your costs. Check whether the premium is guaranteed (fixed for the policy term) or reviewable (the insurer can increase it later)—guaranteed usually costs a little more upfront but protects you from rises. Our consultation is free with no obligation.
How many income protection claims actually get paid?
According to the ABI's 2025 claims data, 79% of individual income protection claims were paid, with a record £209 million paid out to claimants. Most declined claims fail for two avoidable reasons: not disclosing medical history accurately at application, or the claim not meeting the policy's definition of incapacity. Both risks are exactly what proper advice removes—we make sure your application is disclosed fully and your policy definition matches how you actually work.
What's the difference between income protection and critical illness cover?
Income protection pays a monthly income if you can't work for any medical reason—physical or mental. Critical illness pays a one-off lump sum only if you're diagnosed with a specific condition on the policy list (like cancer or heart attack). Many people benefit from having both: critical illness for immediate costs, income protection for ongoing expenses.
Can self-employed people get income protection?
Yes—and self-employed people often need it most since they don't get employer sick pay. Providers will assess your income based on accounts, tax returns, or SA302 forms. Cover is typically based on your average earnings over the past 2-3 years. Contractors, freelancers, and sole traders can all get income protection.
Build Your Protection Plan
A simple framework we use with every client — work through each step in order, then review what you already have.
Adviser Insight from Jay Sabine
Reviewed by Jay Sabine, Mortgage & Protection Adviser — a real FCA-regulated adviser at Your Home Finance.
Income protection is the cover most people don't think they need — until they need it. In my experience, the self-employed and company directors are the most exposed. They often prioritise life insurance because it feels more 'serious', but the reality is you're far more likely to be off work for 6 months with a back problem or mental health issue than you are to die young.
The key is getting the right policy structure. Match your deferred period to any employer sick pay, choose 'own occupation' rather than 'suited occupation' definitions — meaning the policy pays if you can't do your specific job, not just any job the insurer thinks you could do — and make sure it pays until retirement, not just 12 or 24 months.
— Jay Sabine, FCA-regulated Mortgage & Protection Adviser, Your Home Finance
What happens next?
- Complete your Protection Review.
- One of our advisers reviews your existing protection.
- If appropriate, we'll arrange a convenient phone or video appointment.
- We'll explain any gaps we identify before discussing whether any changes are needed.
Not Sure If You Need Income Protection?
Answer a few questions about your situation and we'll tell you whether income protection should be a priority — and what other cover you might need.
You'll start with a review of your existing protection. We'll only discuss new cover if we identify a gap that's worth exploring.
For most working adults, income protection is the foundation of a good protection plan — everything else builds on it.
You'll receive a clear priority summary and the option to speak with an adviser — no obligation.