How much does income protection cost per month?

As a rough guide, income protection costs about 1–3% of your annual income, so someone earning £30,000 might pay roughly £20–£45 a month. Occupation, deferred period, and payout term move this significantly. These are illustrative figures, not a quote.

What makes income protection more expensive?

A manual or higher-risk occupation, a short deferred period, a long (to-retirement) payout term, older age, smoking, health conditions, and index-linking all increase the premium.

How can I make income protection cheaper?

Choosing a longer deferred period, opting for short-term rather than full-term cover, and insuring a sensible portion of your income all reduce the cost. An adviser can balance affordability against the protection you need.

Is income protection worth the cost?

For many people their income is their most valuable asset. Income protection is widely regarded as the most important cover most people don't have, because it keeps paying a regular income for as long as you can't work. Whether it's right for you is something a qualified adviser can help you decide.

How much does income protection cost per month?

As a rough guide, income protection costs about 1–3% of your annual income, so someone earning £30,000 might pay roughly £20–£45 a month. Occupation, deferred period, and payout term move this significantly. These are illustrative figures, not a quote.

What makes income protection more expensive?

A manual or higher-risk occupation, a short deferred period, a long (to-retirement) payout term, older age, smoking, health conditions, and index-linking all increase the premium.

How can I make income protection cheaper?

Choosing a longer deferred period, opting for short-term rather than full-term cover, and insuring a sensible portion of your income all reduce the cost. An adviser can balance affordability against the protection you need.

Is income protection worth the cost?

For many people their income is their most valuable asset. Income protection is widely regarded as the most important cover most people don't have, because it keeps paying a regular income for as long as you can't work. Whether it's right for you is something a qualified adviser can help you decide.

Income Protection cost

How much does income protection cost in the UK?

Income protection usually costs somewhere between 1% and 3% of your annual income, though the exact figure depends heavily on your occupation, the deferred period you choose, and how long the policy pays out for.

The examples below are illustrative. A separate, qualified adviser will compare insurers to find the right cover at the right price for your job and budget — for free.

from ~£20/mo

Office worker, age 30, £30k income, 3-month deferral

from ~£35/mo

Office worker, age 40, £45k income, 3-month deferral

from ~£45/mo

Manual occupation, age 35, £30k income

from ~£14/mo

Office worker, age 30, £30k income, 6–12 month deferral

A longer wait before payout reduces cost

Indicative monthly premiums for illustration only. Premiums vary widely by occupation class, deferred period, payout term, and whether cover is index-linked. Your quote will differ.

Illustrative examples only. These figures are not a quote, recommendation, or financial advice, and your actual premium depends on your individual circumstances. Cover Your Family is not FCA regulated; a separate, FCA-regulated adviser provides all advice and an accurate quote.

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Cover Your Family is not FCA regulated. We pass your enquiry to a separate, FCA-regulated adviser who provides all advice.

What affects your price

What affects your income protection cost

Your occupation

Occupation class is the biggest driver. Manual and high-risk jobs cost more than desk-based roles because the claim risk is higher.

Deferred period

The waiting time before payments start. A longer deferred period (e.g. 6 or 12 months) noticeably lowers your premium — suitable if you have savings or employer sick pay.

Payout term

Full-term cover (paying until retirement) costs more than short-term cover that pays for a capped period such as 1, 2, or 5 years.

Age, health & cover level

Older age, smoking, and health conditions raise the price, as does insuring a higher percentage of your income or adding index-linking.

Keep costs down

How to reduce your income protection premium

✓Choose a longer deferred period if you have savings or employer sick pay to bridge the gap
✓Consider short-term income protection if full-term cover is unaffordable
✓Insure a sensible percentage of income rather than the maximum available
✓Apply while younger and in good health to lock in lower rates
✓Get your occupation class assessed correctly — an adviser can ensure it's accurate
✓Review cover periodically so you're not paying for more than you need

FAQ

Income Protection cost — common questions

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