Is It Worth Getting Income Protection?
Getting income protection is worth it if your household depends on your income. It replaces up to 70% of your salary if you can't work due to any illness or injury - not just serious conditions. For most working people, especially the self-employed, mortgage holders, and parents, the relatively low cost provides invaluable peace of mind.
Who Should Get Income Protection?
Self-employed
No employer sick pay means income stops immediately if you can't work
Mortgage holders
Protect your home by ensuring you can always make payments
Parents and carers
Families depending on your income need security if you're unable to work
Limited savings
If you couldn't survive 3+ months without income, you need protection
Frequently Asked Questions
When is income protection most valuable?
It's most valuable if you're self-employed, the main earner, have a mortgage, or have less than 6 months' expenses in savings. Anyone who would struggle financially if unable to work should consider it.
What's the difference between short-term and long-term policies?
Short-term policies pay for 1-2 years per claim (cheaper but limited). Long-term policies pay until you recover or retire (more comprehensive). Most advisers recommend long-term for proper protection.
Can I afford income protection?
Policies start from around £20-30/month for basic cover. You can reduce costs by choosing a longer waiting period (deferred period) before claims begin.
What if I already have savings?
Savings are your first line of defence. Choose a deferred period matching your savings runway (e.g., 3 months if you have 3 months' expenses saved) to keep premiums affordable.
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.