Get support if illness stops you working
Income protection could replace some of your earnings while you recover
Understand what your cover could do
Learn how income protection works and what different policies may offer
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Income protection insurance is a type of policy that pays you a regular income if you can’t work because of illness or injury. It usually covers up to 65% of your salary and continues until you recover, retire, or your policy ends.
This helps cover essentials like mortgage, rent, and bills, giving you financial security while you focus on recovery.
Income protection insurance pays you a regular income if illness or injury stops you working. It kicks in after a deferred period you choose and continues until you're fit to return or the policy ends. Here’s how it works:
Whether or not you need income protection insurance depends on your financial situation and personal circumstances. Here's what’s worth thinking about:
Ask yourself | Why it matters |
|---|---|
Could you cover bills without a wage? | If your savings would run out quickly, it’s worth considering a policy. |
Do you have children or other dependants? | More outgoings usually means less room to absorb a drop in income. |
Would a partner’s income carry you both? | Think about whether your partner’s salary alone would be enough. |
What would your employer pay you? | Many companies offer full pay for a short spell, dropping to half pay or Statutory Sick Pay (SSP) after that. Check your contract to confirm. |
Do you already have similar cover? | Critical illness cover pays a one-off lump sum for specific serious illnesses, whereas income protection pays out regularly and covers a wider range of situations. |
Could you claim benefits? | You might be entitled to some government support, but it's typically far less than your usual salary or an income protection payout. |
Musculoskeletal problems, such as back pain or broken bones
Mental health conditions, such as depression, stress and anxiety
Serious illnesses, such as cancer, heart disease and stroke
Certain types of illness or injury, such as self-harm
Certain pre-existing medical conditions and illnesses that run in the family. You may even be asked to pay more for your premium in such cases, but your provider should be clear about this
Illnesses or injury that don’t prevent you from doing other types of work, even if you have to give up your current job.
Income protection policies typically cover most illnesses and injuries that leave you unable to work.
While the above are common reasons for claiming, you’ll only receive a payout if you meet your provider’s specific criteria for being unable to work. This is sometimes referred to as ‘definition of incapacity’.
Always check your policy terms, as exclusions can vary between providers.
Bear in mind...
You’ll need to tell your insurance provider about any dangerous hobbies and high-risk sports you do. If you fail to disclose anything that affects a claim, they could refuse to pay out.
Example: short-term or long-term cover?
This is a fictional example to show how the choice could work.
Priya is employed full-time, has a mortgage and gets one month’s full pay from her employer if she’s off sick.
Short-term cover (ASU) could pay her for (usually) up to 12 months if she’s too ill to work or loses her job through compulsory redundancy, but not if she’s made redundant in the first few months of the policy.
Long-term income protection wouldn’t cover redundancy, but it could keep paying for longer if a serious illness stopped her working for years. Premiums are usually higher.
Whichever she chooses, there’s likely to be a 30-day minimum claim period if she needs to claim, though her employer’s sick pay would cover that if it’s a sickness claim. Or she can choose a longer waiting period if she has some savings to cover the gap, which could lower her premium.
Not sure which type you need? Our quote journey covers both short-term and long-term income protection. If you choose long-term cover, an adviser will help you complete your application.
To work out how much cover you might need, think about the income you’d lose and the cost you’d still have to pay.
Quick tip
If you’re not sure how much cover you’ll need, it helps to know what you’d get without it. The Association of British Insurers (ABI) has a free Protection Calculator on its website. It shows the sick pay and other payments you might be entitled to if you couldn’t work, so you can see how big the gap in your income could be.
For a more accurate assessment, you might want to seek the help of an independent financial adviser.
Income protection usually covers only part of your income before you had to stop working. This is typically up to 65% your gross monthly income. It's usually paid tax-free, so the amount you get might to your usual net monthly income than it .
When you take out a policy, you may be able to link it to inflation, such as the Retail Prices Index (RPI).
This means your payout could rise over time to help keep up with the cost of living. But your premiums may also increase if you choose this option.
To get a quote, we’ll ask for some details about you, your job, your income and the cover you’re looking for.
See more advice on protecting your income if you're unable to work
You can usually cancel within 30 days of taking out a policy and get a refund of any premiums paid. After this, you can still cancel at any time, but you may not get a refund.
If your circumstances have changed or you're struggling with payments, it's worth speaking to your provider about adjusting your policy or getting support before cancelling.
Income protection insurance pays you a regular, usually tax-free income if you can’t work due to illness or injury, helping you cover essential outgoings while you’re off work.
Some policies include rehabilitation or support to help you get back to work.
Group income protection is a policy offered by some employers to their staff. It usually forms part of an employee’s benefits package. Group protection often includes rehabilitation services and wellness support to help those off sick return to work.
The employer pays for the insurance and receives the payout if a successful claim is made. This is then passed on to the employee via payroll, and is taxed, instead of being a tax-free payout.
In short, life insurance is for when you die, while income protection is for when you can't work. Life insurance pays a lump sum on death during the policy term to support your family financially, whereas income protection pays you a monthly income if illness or injury stops you working.
Yes. Sick pay comes from your employer and is usually for a short period. Income protection is insurance you pay for that could keep paying once sick pay stops.
Most employees can get Statutory Sick Pay (SSP) from their first day off sick. It’s £123.25 a week or 80% of your average weekly earnings, whichever is lower, for up to 28 weeks. Some employers pay more, so check your contract.
Many people choose a deferred period that starts when their sick pay ends, which could lower their premium.
That depends on your personal circumstances and your budget. Having both could give you more protection, but means paying for two premiums.
Critical illness insurance is often an add-on to life insurance. It could pay out a lump sum if you’re seriously injured or diagnosed with a serious illness specified in your policy.
Income protection is a family of policies, including accident, sickness and unemployment (ASU) insurance and standalone unemployment insurance. Critical illness cover won't cover you for unemployment.
ASU insurance generally offers a broader definition of illness and injury compared with critical illness cover. If you’re off work with a bad back or depression, for example, you might find that these conditions aren’t covered by critical illness insurance.
Standard income protection insurance policies don’t cover redundancy. Cover for losing your job is usually called redundancy insurance or unemployment insurance. You can get it as a standalone policy, part of accident, sickness and unemployment (ASU) insurance and some mortgage payment protection insurance (MPPI) policies.
It only covers compulsory redundancy, not voluntary redundancy or dismissal. It won’t usually pay out if you lose your job in the first 90 to 150 days of your policy, and payments last for up to 12 months.
No, income protection insurance premiums aren’t usually tax-deductible for most people, but the rules can be different if you’re self-employed or run a business.
When you take out a policy personally, you’ll pay for it from your post-tax income. But if your limited company pays the premiums, they can sometimes be classed as a business expense – although this can mean any payouts are taxed as income.
Tim Knighton is an expert in building and managing relationships with big brands for the benefit of customers, with more than 20 years of experience. He seeks out the right products that look after you and those you love most during the toughest times.
1 Based on the % of respondents claiming they have used Compare the Market in the last 12 months vs. other leading PCWs. Source: Savanta BrandVue Financial Services, National Representative Survey of 12,221 respondents (September 2026)
What our expert says...
"According to ABI claims data, musculoskeletal conditions and mental health conditions are among the most common reasons people claim on income protection – perhaps not the illnesses most of us might picture.
"It’s important to look at how different policies define incapacity, as two policies could treat the same back injury very differently. ’Own occupation' pays out if you can't do your specific job, so is the highest level of cover. 'Suited occupation' only pays if you can't do any role you're suited for, for example by training or education. 'Activities of daily living' is the strictest of all – you'd need to be unable to manage basic tasks like walking or dressing.”