How Much Should I Be Paying for Income Protection Insurance?
A 35-year-old non-smoker should typically pay £30-60/month for decent income protection cover. Younger people pay less (from £20/month), older applicants more (£60-100+). Key factors are age, occupation risk, cover amount, and deferred period. Prioritise 'own occupation' definition over getting the cheapest quote.
What Affects Your Price
Age
25-year-old might pay half what a 45-year-old pays for same cover
Occupation
Office workers pay less than manual workers or high-risk jobs
Cover amount
Higher monthly benefit = higher premium; calculate what you need
Deferred period
6-month wait can cost 50% less than 4-week wait
Frequently Asked Questions
What's a typical monthly premium?
For a 35-year-old non-smoker earning £30,000, expect £30-60/month for £1,500/month cover. Younger people pay less (£20-40), older applicants more (£60-100+). Occupation and health also affect price.
How much cover should I buy?
Aim for 50-60% of your gross income. Insurers cap it at 50-70% anyway. Calculate your essential monthly outgoings (mortgage, bills, food) and ensure your cover amount meets that minimum.
Am I paying too much?
Compare like-for-like policies. Check you have 'own occupation' (not 'any occupation'), appropriate deferred period, and guaranteed premiums. If your policy has these, your price is likely fair.
How can I reduce my premium?
Extend your deferred period (6 months vs 4 weeks saves 30-50%), choose reviewable instead of guaranteed premiums, or reduce cover amount. But don't sacrifice 'own occupation' definition to save money.
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.