Income Protection Insurance

Income Protection Insurance is designed to replace a portion of your income if you’re unable to work due to illness or injury. It’s particularly useful for self-employed people or anyone without significant sick pay or savings.

Income protection policies cover a wide range of physical and mental health conditions that prevent you from working. The policy pays out a monthly sum — usually up to 50–70% of your regular income — until you recover, retire, or reach the maximum benefit term.

You can claim multiple times throughout the life of the policy, making it ideal for long-term peace of mind.

This is the waiting period between when you stop working and when your payments begin. Common deferred periods are 4, 8, 13 or 26 weeks. The longer the deferred period, the lower your monthly premium — but it also means waiting longer to receive your income.

Short-term policies typically pay out for 1–2 years per claim, while long-term policies can pay out until retirement age. Our advisers will help you choose what’s right based on your job, income, and budget.

Policies vary. Some cover you only if you can’t work **any job**, others if you can’t work **a job suited to your skills**, and the best cover you if you can’t do **your current job**. We help you choose a policy with the most appropriate definition — ideally ‘own occupation’.

You pay a monthly premium that’s based on your age, health, occupation, smoker status, deferred period, and how long you want cover to last. You should review your policy after key life events like having a baby, changing jobs, or buying a home.

Consider income protection if:

• You’re self-employed or don’t have employer sick pay

• You have a mortgage, rent or dependants

• Your household would struggle on benefits alone

• You want flexible cover to match your lifestyle

Income protection payments usually don’t affect Statutory Sick Pay or state benefits, but it depends on your personal circumstances. We’ll help you understand how it fits into your financial picture.

• You provide medical evidence that you’re unable to work

• Your deferred period passes (e.g. 8 weeks)

• You receive regular monthly payments until you recover, retire, or the benefit term ends We’ll guide you through every step — from choosing the right policy to supporting you during a claim.

Q: Can I claim more than once?

A: Yes, most policies allow multiple claims for separate illnesses or injuries.

Q: Is the payout taxed?

A: Generally, if you pay your premiums yourself, the income is tax-free.

Q: What if I recover and get ill again?

A: If your policy allows, you can make multiple claims throughout its life.