Exclusions guide · Updated for 2026
What Does Income Protection Insurance Not Cover?
Direct answer
Income Protection Insurance does not usually cover redundancy, resignation, unemployment, pre-existing conditions excluded during underwriting, self-inflicted injuries, criminal acts, or retirement. Policies are designed to replace income when you are unable to work due to illness or injury, rather than when your employment ends for other reasons.
What Income Protection Insurance Usually Does Not Cover
| Situation | Usually covered? |
|---|---|
| Redundancy | No |
| Voluntary resignation | No |
| Unemployment | No |
| Pre-existing conditions (where excluded) | No |
| Self-inflicted injury | No |
| Criminal activity | No |
| Retirement | No |
| Illness preventing you from working | Yes |
| Injury preventing you from working | Yes |
Many people tell us they want cover “if anything happens to my income”. In reality, Income Protection and unemployment cover are different products. Understanding that distinction helps avoid paying for the wrong type of policy — or assuming you are protected when you are not.
We often review policies where clients thought redundancy was included. It rarely is unless you have paid specifically for ASU cover. Getting the product match right upfront saves awkward conversations at claim stage.
— Protection adviser, Your Home Finance (FCA-regulated)
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This page provides general information only and does not constitute personal financial advice. Policy terms vary between providers. Your Home Finance is authorised and regulated by the Financial Conduct Authority.