How Many People in the UK Have Income Protection Insurance?
Only about 10-12% of UK working adults have individual income protection insurance. Including employer group schemes, this rises to around 15-20%. This leaves the vast majority of workers unprotected, contributing to an estimated £2.4 trillion protection gap if breadwinners couldn't work.
UK Income Protection Statistics
10-12% covered
Only 1 in 10 working adults have individual income protection
£2.4 trillion gap
The estimated UK income protection shortfall
Growing awareness
Sales increased 20-30% post-pandemic as awareness grew
5.5 years average claim
Average income protection claim lasts over 5 years
Frequently Asked Questions
How many people have income protection in the UK?
Only around 10-12% of working adults have individual income protection. Including group schemes through employers, this rises to about 15-20%. The vast majority of UK workers are unprotected.
Why don't more people have it?
Many assume employer sick pay is enough, overestimate state benefits, or simply don't know income protection exists. Cost perception is also a barrier, though policies start from £20-30/month.
What is the 'protection gap'?
The protection gap is the difference between what people need and what they have. Research suggests UK households have a £2.4 trillion income protection gap - the shortfall if breadwinners couldn't work.
Has take-up increased recently?
Yes. The pandemic increased awareness, with sales rising 20-30% in 2020-2022. More people now understand the risk of being unable to work and the limitations of state support.
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.