Income Protection
Learn how income protection works, the costs, and the benefits it can offer.
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What is income protection?
Income protection is an insurance policy that pays you a regular income if you can’t work because of illness or injury. It’s designed to help replace part of your earnings, so you can keep up with important costs like your mortgage or rent, household bills, and everyday living expenses.
You get to choose how long you need to be off work before the payments kick in (this is called the “waiting period”), and you can also decide how long the payments will last—sometimes just a few years, or even all the way to retirement, depending on your policy and provider. Most policies pay out a percentage of your pre-tax income, usually around 50–70%.
The cost of income protection depends on things like your age, health, job, and how much cover you want. It can work alongside any savings, sick pay, or other insurance you already have, giving you a financial safety net so you can focus on getting better, rather than worrying about lost income.
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Key information
Regular support if you can’t work
Income protection provides a regular monthly benefit if you’re unable to work due to illness or injury, helping you maintain your standard of living and meet financial obligations like mortgage payments and daily expenses
Peace of mind while you recover
Knowing you have a safety net in place can reduce stress and anxiety during challenging times, allowing you to focus on recovery.
Tailor your cover to your situation
An income protection policy can be tailored to your needs, such as the waiting period, to help align with any existing benefits you have such as company sick pay. Depending on the insurer you may be able to make changes to the sum assured if you get a promotion at work for example. You should read your policy documentation to understand what changes can be made.
Some policies can pay out long term
If needed some income protections policies can provide long term support depending on your illness or injury and the period, you are predicted to be unable to work. Some even until retirement age. This will vary by insurer, so it’s important that you check your policy documents to ensure you know what is covered and how the long maximum claim period is.
Check what your policy excludes
Some policies often come with exclusions such as pre-existing conditions and may not cover all injuries or illnesses so make sure to check what your policy covers so there are no surprises.
Mind the waiting period
The waiting period before benefits kick in can be a straining time on finances, so it is important to consider this when choosing your waiting period and consider any workplace sick pay or if you have any savings that you’re happy to use when making your decision.
It won’t replace 100% of your income
The percentage of income that is covered is usually between 50 – 70% meaning that it will not replace your full income, something to consider when deciding if an income protection policy will meet your financial needs and objectives.
Know how your policy works before you need it
Policy features, definitions and claims processes for income protection can differ between insurers, so it’s important to read your policy documents carefully so you know when it will and won’t pay out.
What are the benefits of income protection?
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What can affect the cost of income protection?
Several things can influence the cost of income protection and how much cover you can get. Insurers look at your health and lifestyle, so whether you smoke, your height and weight, and any existing or previous medical conditions all matter. Your job and hobbies can also make a difference, especially if your work is considered risky. The waiting period you choose, and the policy duration will also affect the price.
These factors don’t mean you can’t get income protection, but they might affect the price you pay or the level of cover you’re offered. Being open and honest about your health, lifestyle, and job means your policy will do what it’s meant to, pay out if you can’t work due to illness or injury.
Health and lifestyle factors
When you apply for income protection, insurers usually look at a few key things:
Sometimes, an insurer may ask you to have a simple medical check to better understand your health.
If you already have cover and later lose weight, improve your health, or have been smoke or vape-free for at least 12 months, you may be able to get a new quote that works out cheaper than before. You will need to be medically reassessed based on your health and lifestyle at the time of the new application.
High risk jobs
Some jobs involve more day-to-day risk than others. For example:
Having a higher-risk job might mean you pay a bit more or have some extra terms on your policy, but it doesn’t mean you can’t get cover.
If you have questions about getting life insurance with a high-risk job, just get in touch with our friendly team. We’re here to help you find the right cover for your situation.
This list of high-risk jobs is not complete and should not be seen as a full guide.
High risk hobbies
Some active hobbies are seen as higher risk by insurers, such as:
It’s important to mention these activities on your application so your policy works as expected. Being open and honest helps make sure any future claim runs smoothly, and means you won’t end up paying more than you need to for the wrong type of cover.
This list of high-risk hobbies is not complete and should not be seen as a full guide.
What are the different types of life insurance?
Life Insurance can feel confusing, so here is a quick, simple overview of the main types.
Most popular
Increasing Term Life Insurance
The cover amount increases each year, to tackle the effects of inflation, so your payout and premiums keep
pace with the cost of living.
Good for: Keeping up with rising costs
Cheapest option
Decreasing Term Life Insurance
The payout reduces over time, often matching your mortgage balance.
Good for: Covering a repayment mortgage
Guaranteed acceptance
Over 50s Life Insurance
Guaranteed, if you meet the age and payment rules, acceptance for UK residents aged 50–80. No medical checks needed.
Good for: Ages over 50
Couple cover
Joint Life Insurance
Covers two people and pays out when the first (or sometimes second) person dies.
Good for: Couples who want to share one policy
Fixed cost
Level Term Life Insurance
Pays a set amount if you die during the policy term. The cover and monthly cost stay the same.
Good for: Budgeting at a fixed cost
Lifetime cover
Whole of Life Insurance
There’s no end date, this policy pays out whenever you die, as long as premiums are paid.
Good for: Lifelong cover
Illness add-on
Critical Illness Cover
Insurance that pays a lump sum if you are diagnosed with a serious illness covered by the policy during the term.
Good for: Financial help if you become seriously ill
Protection add-on
Income protection
If illness or injury stops you working, income protection can pay a regular amount to help with everyday costs like rent or mortgage, bills and food, so you can focus on your recovery.
Good for: Covering your income if you can’t work
Ready to get a free quote and compare life insurance options?
How much life insurance cover do I need?
Our calculator helps you get a rough idea of how much cover you might need if the worst happens, based on the figures you put in.
Ready to get a free quote and compare your life insurance options?
Ready to get a free quote and compare your life insurance options?
FAQs
Got questions about life insurance? Here are some of the most common ones.
Can I trust you and your insurance providers?
Protect Line was founded in 2010 and has since grown into one of the UK’s largest and leading life insurance brokerages, employing 250+ staff nationwide. Winning multiple consumer awards each year and receiving thousands of five star ratings on Trustpilot, Google and Smart Money People, Protect Line is a highly trusted company.
We are fully authorised and regulated by the Financial Conduct Authority, entered on the Financial Services Register (www.fca.org.uk/register) under reference 942467. We are also registered with the Information Commissioner’s Office (ICO) to meet data protection standards and adhere to the Advertising Standards Authority (ASA) rules to ensure our advertising is always clear, fair and not misleading.
Read moreCan you recommend the best life insurance?
Protect Line is a non-advised life insurance broker—we never recommend or advise on any specific policy. We simply present your options so you can decide.
Life insurance policies can seem complex, especially at first glance. There is so much to consider including the policy types, policy term, level of cover, illness cover or funeral benefits, monthly costs, and the life insurance company you trust to administer a payout.
Read moreDo you have any job vacancies?
Protect Line is one of the largest life insurance brokers in the United Kingdom. As such as we employ hundreds of people to ensure we can protect as many British families as possible and provide our valued customers with the best possible experience.
Interested in joining our team? Visit Protect Line Careers for the latest job vacancies and speak with our friendly recruitment team.
Read moreDoes life insurance pay out if I have a stroke?
Life insurance policies are designed to only pay out on your death, however most life insurance policies will pay out early if you are diagnosed with a terminal illness where you have been given less than 12 months to live.
Some strokes can cause extreme harm to health and can cause a coma, or lead to someone dying. Terminal Status Stroke can sometimes require palliative care, where death is expected within months. Depending on the severity of the stroke, a life insurance policy may payout under the terminal illness clause.
If a stroke is of a lesser severity a life insurance policy will not pay out whilst the policy holder is still alive, however death by stroke would be covered at any time, subject to the policy still being active at time of death.
If you are interested in protecting your finances in the case of having a stroke, you could also consider Critical Illness Cover. This will pay out on diagnosis of a wide variety of illnesses, including if you have a stroke.
Read moreDoes life insurance pay out if I’m really ill?
Life insurance policies are designed to only pay out on your death, however most life insurance policies will pay out early if you are diagnosed with a terminal illness where you have been given less than 12 months to live.
If you are looking for a policy that pays out if you get seriously ill you should consider Critical Illness Cover. This insurance will pay out on diagnosis of a wide variety of illnesses, including if you have a stroke, heart attack or get cancer of certain severity.
Read more