What Is Covered Under Income Protection?
Income protection covers 50-70% of your gross income if illness or injury stops you working. Coverage includes any health condition - mental health, back pain, cancer, injuries - not just a specific list. Payments are tax-free and continue until you recover or retire. You can claim multiple times during your policy.
What's Covered
Any illness or injury
Not limited to a list of conditions - covers whatever stops you working
50-70% of income
Monthly tax-free payments that often match your take-home pay
Long-term payments
Continue until you recover or retire - not limited to 1-2 years
Multiple claims
Can claim repeatedly during the policy, unlike one-off lump sums
Frequently Asked Questions
What percentage of income is covered?
Typically 50-70% of your gross income. This is paid tax-free, so it often equals your normal take-home pay. The cap prevents 'moral hazard' (no incentive to return to work).
How long are you covered for?
Long-term policies pay until you recover, return to work, or reach retirement age (usually 65-70). Short-term policies pay for 1-2 years maximum per claim.
Is there a waiting period?
Yes, the 'deferred period' is how long you must be off work before payments begin. Options range from 4 weeks to 12 months. Longer waits mean lower premiums.
What's the difference from critical illness?
Critical illness pays one lump sum for specific serious conditions. Income protection pays monthly for ANY condition preventing work, continuing until you recover. Many people have both.
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.