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 means you only get paid if you literally can't do any job at all. Always go own occupation where possible — the difference at claim time is enormous.
Who needs it most
Self-employed: Absolutely essential. You have zero employer safety net. No work means no income, with no SSP to fall back on. This is one of the most important financial products you'll ever take out.
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 of around £116 per week. Income protection fills the gap — potentially for years.
As with all insurance policies, conditions and exclusions will apply.