What Is the Deferred Period for Income Protection?
The deferred period is how long you must be off work before income protection payments start. Options range from 4 weeks to 12 months. Longer deferred periods mean lower premiums - a 6-month wait can cost 30-50% less than 4 weeks. Choose based on your employer sick pay and savings.
Common Deferred Period Options
4 weeks
Shortest wait, highest premium - good if no employer sick pay
8-13 weeks
Common choice - balances cost with reasonable wait time
26 weeks (6 months)
Significantly cheaper - suits those with good employer sick pay
52 weeks (12 months)
Lowest premium but longest wait - only for substantial savings
Frequently Asked Questions
What is a deferred period?
The deferred period (also called waiting period or excess period) is how long you must be off work before payments begin. You choose this when setting up your policy - options range from 4 weeks to 12 months.
What deferred period should I choose?
Consider your employer sick pay and savings. If you get 3 months full sick pay, a 3-month deferred period makes sense. Longer deferred periods = lower premiums, but more time without income.
Does it affect my premium?
Yes, significantly. A 6-month deferred period can cost 30-50% less than a 4-week period. Balance affordability against how long you could manage without income.
Does the deferred period apply every claim?
Yes. Each new claim triggers a fresh deferred period. However, if you return to work briefly then relapse with the same condition, many policies have a 'linked claims' feature that waives the wait.
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.