Your salary,
if you can't work.
If illness or injury stops you working, income protection pays a monthly income, often for years. One of the most valuable protections you can arrange, and especially worth thinking about if you're self-employed.
How it works.
You pay a monthly premium. If you become unable to work due to illness or injury, the policy pays a monthly income, typically 50–70% of your salary, for as long as you can't work, up to a maximum period (often to retirement age). Not employer-dependent. Not limited to a few months of statutory sick pay.
The three decisions that shape your policy.
- Deferred period
How long you wait before the policy starts paying. 4 weeks (higher premium), 13 weeks (most common balance), or 26+ weeks (cheaper, for people with good savings). Most people choose 13 weeks, long enough to use sick leave and any savings buffer, without paying for cover they don't need.
- Benefit period
How long the policy pays out. Could be 2 years, 5 years, or all the way to age 65. Longer benefit periods cost more, but they're the ones that actually protect you if something serious happens.
- Own occupation vs. any occupation
This is the critical distinction. Own occupation means you're covered if you can't do your specific job. "Any occupation" generally means you must be unable to do work reasonably suited to your education, training and experience, and the exact definition varies between policies. Own occupation is usually the stronger definition, and the difference at claim time can be significant. Which one suits you depends on your job and your budget, so it's something we'll talk through together.
Who needs it most
Self-employed: Well worth serious thought. You have no employer safety net and no Statutory Sick Pay to fall back on, so if illness or injury stops you working, your income can stop with it. For many self-employed people it's one of the most valuable policies to consider.
Employees with limited sick pay: Check what your employer actually provides in writing. Many offer 3–6 months at full pay, then Statutory Sick Pay, which is £123.25 a week in 2026/27 (or 80% of your average weekly earnings, if that is lower). Income protection fills the gap, potentially for years.
Common questions.
- How is this different from critical illness cover?
Critical illness cover pays one lump sum on diagnosis of specific conditions. Income protection pays a monthly income for any illness or injury that stops you working, for as long as the policy allows. Back problems and mental health, which critical illness policies rarely cover, are the two biggest causes of long-term absence.
- How much of my income can I protect?
Typically 50% to 70% of your gross salary, paid tax-free. The cap exists so there's still an incentive to return to work.
- I get sick pay through work. Do I still need this?
Check how long it actually lasts. Full sick pay often drops to statutory levels within months, and Statutory Sick Pay is £123.25 a week in 2026/27 (or 80% of average weekly earnings, if lower). A policy can be set up with a deferred period that starts exactly when your sick pay stops, which also keeps the premium down.
- Does it pay out if I'm made redundant?
No. Income protection covers illness and injury, not unemployment. Redundancy cover is a separate, and much more limited, product.
As with all insurance policies, conditions and exclusions will apply.
What would you do if you couldn't work?
Book a free chat and let's make sure you have a proper answer to that question, not a worrying one.
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