Does Income Protection Actually Pay Out?
Yes, income protection actually pays out. Industry statistics show 91% of claims are successful - one of the highest rates across all insurance types. The 9% declined are mainly due to non-disclosure when applying or not meeting policy definitions. Average claims last 5.5 years, proving it provides real long-term support.
Claim Statistics
91% claims paid
One of the highest success rates across all insurance products
5.5 years average
The average income protection claim lasts over 5 years
Non-disclosure is #1 risk
Most declined claims result from not being honest when applying
Mental health top reason
Stress, anxiety, and depression are the most common claim causes
Frequently Asked Questions
What are the actual claim success rates?
The Association of British Insurers reports around 91% of income protection claims are paid. This is one of the highest success rates across all insurance types, demonstrating genuine claims are almost always paid.
Why are 9% of claims declined?
Most declined claims are due to: non-disclosure when applying (not telling the truth about health history), claiming for excluded conditions, not meeting the policy's incapacity definition, or fraud attempts.
How long do claims typically last?
The average income protection claim lasts around 5.5 years. Some are shorter (recovery from surgery), others much longer (permanent disability). Long-term policies pay until you recover or retire.
How do I ensure my claim is paid?
Be completely honest when applying, understand your policy's definition of incapacity, keep medical records, notify your insurer promptly, and follow their claims process. Most genuine claims are paid.
Related Questions
This page provides general information only and does not constitute personal financial advice. Income protection insurance products and their terms vary between providers. Always read the policy documentation carefully before purchasing. Your Home Finance is authorised and regulated by the Financial Conduct Authority.