Protection
Income Protection
Income protection replaces a chunk of your regular earnings if you can't work due to illness or injury. It keeps the mortgage paid and your family financially secure until you're back on your feet.
What Is Income Protection?
Income protection (IP) is a long-term insurance policy that pays you a regular monthly income if you can't work because of illness, injury or disability. Unlike critical illness which pays a one-off lump sum for specific conditions, IP covers any condition that stops you doing your job.
Most policies pay up to 60-70% of your pre-tax income and keep paying until you're well enough to go back to work, reach retirement age, or the policy ends. You can claim as many times as you need.
If you're self-employed with no employer sick pay, income protection is probably the single most important insurance you can buy. Without it, a long illness could mean losing both your income and your home.
Things to Think About
Deferred Period
How long you wait before payments kick in (usually 4, 8, 13 or 26 weeks). A longer wait means lower premiums. We match this to your employer sick pay or savings.
Own Occupation
"Own occupation" pays out if you can't do YOUR job. "Suited occupation" only pays if you can't do ANY job you're qualified for. We always push for own-occupation cover.
Guaranteed Premiums
Guaranteed premiums stay the same for the whole term. Reviewable ones can go up. We normally recommend guaranteed so you know exactly what you'll pay.
If You're Self-Employed, Read This
No employer sick pay. No statutory sick pay worth mentioning. If you can't work, the money stops. Income protection is the only way to guarantee your bills get paid while you recover. With the right deferred period, premiums can be surprisingly affordable.