What is income protection insurance?
Income protection is a type of insurance that replaces some of your income if you're unable to work because of illness or injury. Its regular payouts can help you stay buoyant through turbulent times, so you can focus on getting better and back to work.
The benefits of our income protection insurance
How does our 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.
Payments are made monthly as a fixed amount and start after a deferred period (a waiting period) which lasts between 4 and 26 weeks, depending on the option you choose.
You can claim as many times as you need while the policy lasts. But you'll need to return to work for at least 16 hours a week for at least six months in a row before you can make another claim.
How much do you get each month?
You'll get between £500 and £1,500 a month, subject to eligibility, tax-free, on each successful claim, for up to 12 months.
When deciding how much you'd like to get each month, consider the effects of inflation. Since prices tend to rise over time, you'll want to make sure your money will help you fend off future shocks.
How long does the policy last?
You can choose a policy lasting anywhere from 5 to 52 years, or until you're 71. You'll pay fixed monthly premiums for the duration of your policy.
What's a deferred period?
The deferred period is the waiting time between the first day you're unable to work and the first day you’re eligible for income protection payments. You can choose a deferred period of 4, 8, 13 or 26 consecutive weeks when you buy your policy.
Generally, the longer the deferred period, the cheaper your premium, but the longer you'll have to wait until your first payment. So, it’s important to ask how long you could manage financially if your income stopped or dropped.
Do you need income protection insurance?
You might need income protection insurance if a loss of earnings due to illness or injury would make it tough for you to pay the bills.
Consider how you’d cover your usual monthly costs if you were ill or injured and couldn’t work for a while. Could you still make ends meet using statutory (employer) sick pay, your own savings or state benefits? If not, income protection might be a powerful way to guard against financial hardship.
What's included in our income protection insurance?
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.
Why get income protection insurance?
Having income protection insurance is an important thing you can have in place to help protect your finances if you become unable to work due to illness or an injury. Your policy can provide a monthly income to help cover your living costs if you're unable to earn your regular salary. This means:
- Financial support – help to cover your regular monthly outgoings
- Peace of mind – allowing you to focus on getting better
- Regular payments – designed to replicate the regular payment of your salary.
To apply for cover, you must:
- 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.
Ready to get cover?
You can apply for Living Costs Protection directly with us over the phone.
Call us for a quote
0800 433 4513
Monday to Friday: 8:00am - 6:00pm
Weekends and bank holidays: Closed
^ Calls may be monitored or recorded. Calls to 0800 numbers from UK landlines and mobiles are free. Our opening hours may be different depending on which team you need to speak to.
Income protection insurance FAQs
What happens if I stop working or I’m made redundant?
What if I take adoption/maternity/parental leave?
Can I have more than one policy?
Am I eligible if I’m self-employed?
How do I decide how much benefit I need each month?
Why choose us for income protection insurance?
Looking for more cover?
Income protection articles and resources
Read more about managing financial challenges and returning to work.