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. It is especially important if you are self-employed or lack employer sick pay: Statutory Sick Pay is just £116.75 per week, and many 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.
Statutory Sick Pay is just £116.75 per week. If you're self-employed, you get nothing. Income protection replaces 50-70% of your salary.
We help you understand whether income protection is right for you before comparing policies or costs.
£116.75
SSP per week
~86%
Claims paid*
~30%
Mental health*
50-70%
Salary cover
*Industry estimates. Source: ABI Protection Statistics.
"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."
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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 family depends on your income for the mortgage and bills, losing it 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
What Happens Without Income Protection?
When serious illness strikes, the financial pressure compounds the health crisis.
Mortgage arrears within months
Without income, mortgage payments become impossible. Arrears lead to repossession.
Savings depleted fast
The average UK household has 3 months' expenses in savings. 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 your income, covering mortgage, utilities, and essentials.
With IP: Focus on recovery
No 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.
Common Income Protection Mistakes
These errors cost people money or leave them underprotected when they need cover most.
Understanding policy terms
Short-term policies (12-24 months) are more affordable and better than nothing. If budget allows, full-term cover provides longer protection for serious illness.
Wrong deferred period
If you have employer sick pay, you can't claim income protection during that period anyway. Match your deferred period to when your sick pay ends to avoid paying for cover you can't use.
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 mortgage? Start here
Income protection pairs with mortgage planning — explore answers and commercial hubs.
Mortgages hub →
Whole-of-market mortgage advice
Self-employed mortgages →
Borrowing for sole traders and directors
Popular mortgage answers
Income protection advice — not a hard sell
Find out if you need cover, then compare quotes with FCA-regulated advisers.
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.
Best IP for Self-Employed
Which insurers suit your trade and income proof.
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 Does IP Pay Out?
Conditions that trigger a claim.
Deferred Period Explained
4, 8, 13 or 26 weeks — choosing your waiting period.
How Long Does IP Pay Out?
Short-term vs long-term payout periods compared.
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.
Adviser Insight
"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, and make sure it pays until retirement—not just 12 or 24 months."
— Protection Adviser, Your Home Finance
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.
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.