Income Protection
Your income, protected
if you can't work.
Income protection insurance replaces a portion of your income — typically 50–70% — if illness or injury prevents you from working. Unlike sick pay, it can pay out for months, years, or until retirement.
It is widely regarded as the most important protection most people don't have. Our advisers will help you find the right policy for your occupation, income, and budget.
What is income protection insurance?
Income protection insurance — sometimes called permanent health insurance — pays a regular monthly income if you are unable to work due to illness or injury. Unlike sick pay, which your employer may only provide for a limited period, income protection continues paying until you recover, reach your chosen retirement age, or the policy term ends.
How much can income protection replace?
Most policies replace 50–70% of your pre-disability gross income. This level is intentionally set below your full salary to maintain an incentive to return to work. Policies typically have a deferred period — the waiting time between being unable to work and receiving your first payment. Common options are 1, 3, 6, or 12 months. Choosing a longer deferred period reduces your premium and is most appropriate if you have savings or employer sick pay to bridge the gap.
Own occupation vs any occupation definitions
The definition used to assess your claim is the single most important feature of an income protection policy. Own occupation policies — the gold standard — pay out if you cannot do your specific job. Any occupation policies only pay if you cannot work in any capacity. A financial adviser will ensure you are covered on the most favourable terms for your occupation and circumstances.
Who needs it
You should consider income protection if…
- ✓You are self-employed with no employer sick pay
- ✓Your employer sick pay only lasts a few months
- ✓You have a mortgage or rent you couldn't pay without your income
- ✓You have financial dependants
- ✓Your job involves physical work and carries injury risk
- ✓You are the primary or sole earner in your household
Key benefits
Why it matters
Long-term income replacement
Policies can pay until you return to work, or until your chosen retirement age — providing genuine long-term security.
Own occupation definition
The best policies pay out if you cannot do YOUR job — not just any job. Your adviser will explain the difference and why it matters.
Linked to your earnings
Cover is proportional to your actual income, ensuring you receive a meaningful replacement even if circumstances change.
Inflation-linked options
Indexed policies increase your benefit annually in line with inflation, so your purchasing power is maintained during a long-term claim.
FAQ
Common questions about income protection
Don't leave your income unprotected.
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