What is income protection insurance?
It's an insurance policy that can help support you with a monthly payment if you’re ill or injured and can’t work. It pays a proportion of your lost earnings, which could help cover your monthly outgoings. So you’re able to focus more on getting better and back to work.
Monthly benefit payment
To cover some of your lost earnings
Flexible cover options
You choose your monthly benefit, deferred period and policy length
Supportive claims team
To make the claims process easy and help you get back on your feet
How does income protection insurance work?
Our Living Costs Protection, which is a form of income protection insurance, can help replace some of your earnings if you’re unable to work due to illness or injury. This could help you pay essential bills like your mortgage, rent and other outgoings such as utilities and food, enabling you to focus on your recovery. It can provide you with either a fixed monthly benefit amount or cover a percentage of your earnings following the deferred period. The benefit amount can be paid for each eligible claim for a set period of time from up to 12 months, or until retirement.
How much do you get each month?
We'll pay from £500 to £1,500 a month, subject to eligibility, tax-free, on each successful claim, for up to 12 months. The money could go towards helping you maintain your standard of living and supporting your loved ones.
How long does the policy last?
You pay fixed monthly premiums for the number of years you want your policy to last, from 5 to 52 years, or until you're 71.
What’s a deferred period?
It’s the time between the first day you’re unable to work and when you get your first payment. When you buy your policy, you can choose 4, 8, 13 or 26 consecutive weeks as your deferred period.
The longer your deferred period is, the cheaper your premium will usually be, but the longer you’ll have to wait until we start paying your benefit. Everyone’s personal circumstances are different and when you’re considering what deferred period would most suit your needs, consider how long you could manage financially if your income stopped or reduced if you're unable to work due to illness or injury.
Do you need Income protection insurance?
Consider how you’d cover your usual monthly costs if you were ill or injured and couldn’t work for a while. Would you be able to carry on paying the bills using statutory sick pay or your savings? If not, it's worth thinking about. Our income protection insurance supports you financially if you’re unable to work because of injury or illness. It doesn't cover you if you're unemployed or made redundant. When deciding if you need income protection insurance, you should consider your savings, how long your employer will continue to pay you, and what state benefits you may get after any employer payments stop.
What our income protection insurance includes
- Monthly payment
To help cover some of your lost earnings for up to 12 months following the deferred period. If you’ve returned to work for at least 16 hours a week for at least six months in a row, you can make another claim if you're unable to work due to illness or injury
- Fixed premiums
Monthly payments that stay the same for the term of your policy, unless you make changes
- Choose how much benefit you get
From £500 to £1,500 a month, subject to availability. The amount you choose will stay the same throughout the term of your policy. So, when choosing your benefit, think about the effects of inflation. Inflation could mean what you can buy with that amount may be less, due to prices rising over time
- Choose how long your policy lasts
From five to 52 years, or until you’re 71
- Choose your deferred period
This is how long until you get your first payment after a successful claim, which can be 4, 8, 13 or 26 weeks
- Comprehensive claims service
With rehabilitation support to help you return to work
- Back to work benefit
One month’s benefit when you return to work if your illness or injury means you earn less than you did before. This isn't applicable if you have already received 12 benefit payments
- Life change benefit
If your policy is accepted on standard terms there's the option to increase your cover amount if your mortgage or rental payments go up
- Waiver of premium
If you make a successful claim, we'll start paying your premiums for you after 13 weeks, or from the end of your deferred period, whichever is sooner; you'll need to continue paying your premiums until that time. Once your claim ends, you'll need to start paying your own premiums again
This policy has no cash-in value at any time. If you stop paying your premiums, your cover stops and you get nothing back. We will only pay out if a successful claim is made.
We call our income protection insurance policy Living Costs Protection. See our policy documents for a full list of what’s covered and for more information about what our income protection insurance offers.
Income protection insurance in numbers
Income protection claims
In 2021, we paid 4,300 income protection claims totalling £51.2m. And that’s not all. Go behind the scenes and find out more with our latest claim facts, figures and essential info.
Are you eligible for income protection insurance?
To apply for this cover directly with us, you need to:
- Be aged 18 to 59
- Be in, and have a legal right to live in, the UK, consider the UK to be your main home and be legally permitted to work there, and have no current intention of moving anywhere else permanently
- Work at least 16 hours a week – whether self-employed or as an employee
- Have worked for the past 12 months
- Be registered with a doctor in the UK for at least two years
† Provided by Square Health
‡ Provided by Bupa
Partnering with Macmillan Cancer Support
Offering specialised cancer support
We’ve partnered with Macmillan Cancer Support to raise awareness of the emotional, medical, and financial support they can provide if you’re living with cancer. Our customer team has the information, tools, and necessary training needed to guide you quickly to the Macmillan support service that’s right for you.
Need to make a claim?
If you need to make an income protection claim, we'll be there for you and make it as smooth as possible.
Looking for something else?
We have the cover to protect you and your family.
Income Protection articles
Read about managing challenges and returning to work.
Ready to get cover?
Call us for a quote
You can apply for Living Costs Protection directly with us over the phone.*
Monday to Friday: 8:00am - 6:00pm
Saturday and Sunday: Closed
*For our joint protection, telephone calls may be recorded and/or monitored. Calls to 0800 numbers from UK landlines and mobiles are free.