Income protection
Income protection insurance can provide a regular income if you’re unable to work due to illness or injury, helping you keep up with everyday expenses and financial commitments while you recover.
What is income protection insurance?
Income protection insurance is designed to replace part of your regular income if you’re unable to work because of an illness or injury. It usually provides a monthly payment after an agreed waiting period, helping you continue to meet everyday expenses and financial commitments while you recover.
If you were unable to work for several weeks or months, you may need to rely on employer sick pay, savings or state benefits. Income protection can provide an additional financial safety net, particularly if your existing sick pay arrangements would not be enough to cover your usual outgoings.
The amount you can receive, how long payments continue and when they begin will depend on the policy you choose, so it’s important to compare the terms as well as the monthly premium.
How does income protection insurance work?
Income protection insurance can provide a regular payment if you’re unable to work because of illness or injury. The payments are designed to replace part of your usual earnings and can help towards essential costs such as your mortgage or rent, household bills and everyday living expenses while you’re unable to work.
You choose the level of cover and waiting period when taking out the policy, and benefits are paid in line with the policy terms if you make a valid claim. This can give you greater financial security while you focus on your recovery and returning to work.
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What does long-term income protection cover?
Long-term income protection is designed to provide a regular income if illness or injury leaves you unable to work. Depending on the policy, it can replace a proportion of your usual earnings after an agreed waiting period, helping you continue to meet your financial commitments while you recover.
Some policies allow you to make more than one claim, provided you continue to meet the policy terms. For longer-term or more serious conditions, payments may continue until you are able to return to work, reach the end of the policy term or retire.
The amount paid, how long benefits last and the definition of being unable to work can vary between insurers, so it is important to compare the policy terms carefully.
Are there any exclusions?
Income protection policies usually include exclusions and conditions that affect when a claim can be made. These can vary by provider, but may include:
- Unemployment where you are not unable to work because of illness or injury.
- Self-inflicted injuries or intentionally caused harm.
- Illness or injury linked to alcohol or drug misuse.
- Claims arising from criminal activity or war.
- Working while claiming, where this is not permitted under the terms of the policy.
- Certain pre-existing medical conditions, depending on the insurer and the information provided when you apply.
Because exclusions differ between insurers, it is important to check the policy wording before taking out cover.
Compare income protection policies
Comparing income protection policies can help you find cover that suits your income, financial commitments and budget. The amount of income protected, waiting periods, benefit periods and policy terms can vary between insurers, so it’s important to consider more than just the monthly premium. We can compare policies from a range of leading UK insurers to help you find suitable cover for your circumstances.