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Income Protection
If you're unable to work due to sickness or accident, Income Protection Insurance will pay you a regular tax-free income, whether you're employed or self-employed. You can claim as many times as you need to, during the term of your policy depending on conditions.
These policies pay an on-going, regular payment of up to 70% of your monthly earnings throughout the term of the policy, so you can be reassured to cover your main outgoings, until you are well enough to go back to work.
Why may you need Income Protection?
Income Protection has many benefits such as giving you some reassurance that you and your family don’t need to suffer any financial burden of you being unable to work.
No matter whether you are self-employed or work for a company, if you depend on your income to pay for everyday bills and other finances, you should seriously consider Income Protection. Generally, if you get very little to no sick pay from your employer, an income protection claim payout will fill the gap left between your regular income and any sick pay.
If you are the sole breadwinner at home, or you actually couldn't afford to pay the bills without a full wage, then we'd advise you get Income Protection.
Your policy will pay a proportion of your lost earnings, so you can concentrate on looking after your health. You can choose when your payments start and how long they last. It can give you that peace of mind if you're unable to work because of an accident, sickness or ill-health.
This money can minimise the impact that ill-health or injury affects your family. It can be used to support your lifestyle and financial commitments. Meaning you don’t have to miss out on the things you and your family enjoy.
Income protection will pay out until you can work again. Depending on the type of policy, if you could never work again (due to accident or sickness) you could be paid out until your pre-determined retirement age.
There are a variety of cover types, for everyone's budget and circumstances,
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Level cover - The amount of cover you choose is fixed during the life of the policy. This means it won't keep up with inflation and may get you less in the future.
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Inflation linked - The amount you are covered for will increase in line with inflation. The premium you pay will go up each year decided by the insurer and using the Retail Prices Index.
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Guaranteed premiums - Basically, your premium is guaranteed (will not change), unless you have chosen inflation-linked cover.
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Reviewable premiums - Don’t change within the first 5 or so years of your policy, depending on the provider. After that they could change every year.
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Short-term or budget cover – Generally a more affordable option. Each time you make a valid claim, the policy will pay out for a fixed period of either 12 or 24 months (depending on the option you choose). You can make multiple claims over the life of the policy, although the cover is more limited and may only be available with guaranteed premiums.
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Comprehensive cover - This will cover you if you are unable to work because of accident and sickness for your chosen term, or you retire or you are well enough to go back to work.
FAQ's
What exactly is Income Protection?
Think of it as a "back-up salary." If you can't work because of an illness or injury, this policy pays you a monthly tax-free amount (usually around 60% of your normal pay). It’s there to make sure that even if you’re stuck at home recovering, the mortgage, the food shop, and the kids' clubs are all still paid for.
Isn't this the same as Critical Illness cover?
Not quite! Critical Illness pays out one big lump sum for specific, very serious conditions. Income Protection is more flexible—it pays out monthly for almost any reason you can’t work, like a bad back, stress, or a broken leg. It’s designed to replace your paycheck until you’re fit enough to get back to the office or shop floor.
Can I get this if I’m self-employed?
Yes! In fact, we think self-employed parents need this most of all. If you don't work, you don't get paid—and "Statutory Sick Pay" doesn't apply to you. We can set up a plan that kicks in quickly so your business and your family bubble don't take a hit while you're off.
How much does it cost?
We can tailor the price to fit your budget. By changing your "waiting period" (how long you wait before the payments start), we can make the monthly cost very affordable. For most UK parents, it's about the same as a couple of streaming subscriptions—but it protects so much more.
Will it pay out until I retire?
It can do! You can choose a "Full Term" policy that will keep paying you every single month until your chosen retirement age if you are never able to work again. It’s the ultimate long-term safety net for your family's future.
What about my "Sick Pay" from work?
If your employer gives you sick pay for 3 or 6 months, we can "bridge the gap." We set your policy to start exactly when your work pay stops. This keeps your monthly costs down while making sure there’s never a day where your bank account hits zero.
Is the payout taxed?
Nope! Because you pay for the policy out of your own pocket, the monthly "salary" you receive from a claim is currently tax-free in the UK. Every penny goes exactly where it's needed: to your family.