What Is the Average Cost of Income Protection Insurance in the UK?
Income protection in the UK typically costs £30-80 per month for someone aged 30-40 earning an average salary. A 35-year-old non-smoker might pay £30-60/month for £1,500/month cover. Key factors are age, occupation, cover amount, and deferred period. Extending the deferred period to 6+ months can halve your premium.
What Affects Your Premium
Your Age
Younger applicants pay less - a 25-year-old may pay half what a 45-year-old pays
Your Occupation
Office workers pay less than manual workers or those in hazardous jobs
Cover Amount
Higher monthly benefit = higher premium; most insure 50-60% of income
Deferred Period
Longer waiting before claims start (e.g., 6 months) significantly reduces cost
Frequently Asked Questions
How much does income protection typically cost?
For a 35-year-old non-smoker earning £30,000, expect to pay £30-60/month for £1,500/month cover. Costs increase with age, higher income, riskier occupations, and shorter deferred periods.
What factors affect my premium?
Key factors: age, smoking status, occupation risk class, cover amount, deferred period length, policy term, and health history. Manual workers pay more than office workers.
How can I reduce the cost?
Extend your deferred period (e.g., 6 months instead of 4 weeks), reduce cover amount, choose reviewable instead of guaranteed premiums, or accept 'any occupation' instead of 'own occupation' definition (not recommended).
Is income protection more expensive than life insurance?
Yes, typically 2-3x more expensive. This reflects the higher likelihood of claiming - you're more likely to be unable to work for months than to die during the policy term.
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.