Protect Your Income

The government’s furlough scheme showed many of us how important it was to benefit from an ongoing income stream to help meet everyday costs – when circumstances had dramatically changed. An Income Protection policy could deliver much the same.

Instead of Covid affecting how you work, an Income Protection policy is designed to help counter wider issues which may stop you earning an income. This could encompass being off work long-term due to mental health issues, an illness, or injury.

It’s an extremely flexible product, and will generally cover up to around 60-65% of your gross income (if your claim is successful – and over 81% are).

Dependent on the type of product you opt for, it could deliver a tax-free monthly payout until you’re well enough to return to work, retired or have died, whichever occurs first.

Could it happen to me?

Of course, most of us will feel that being off work long-term, and unable to earn an income is highly unlikely. Yet, there are currently about 2.8m people in the UK that aren’t working due to long-term sickness. That equates to around one in nine of all full-time workers!

My employer, or the State will provide

This is true, up to a point. If your employer has a generous ongoing scheme in place, then you may not need this cover (assuming you remain with them). As for state support, if you qualify you may get about £120 a week for up to 28 weeks.

You may think that around 6 months financial support from your employer or the state may cover your needs for the timeframe you might be off work. Possibly, but also consider this; some of the largest insurers are reporting that the average length of their Income Protection claims is about 6 years.

Interestingly, this product seems to resonate better with the younger generation. And this group may still have, for example, 350+ months of their working life ahead of them when bad things might occur. Which could then limit how they can financially provide each month for themselves, and, possibly, their family too.

Short-Term Income Protection

If you recognise the importance of having some degree of cover in place, but are concerned about minimising your outlay, then a shorter-term version is also available.

This option is designed to still deliver important financial support (if off work) but for a more limited period of generally up to two years – or even five, in some instances.

Who should consider this?

Employees – particularly those with little or no sick pay from their employer.
Self-employed and freelancers – with about 4.4m workers encompassing this sector.*
Homeowners – with mortgages.
Income earners – with dependents relying on their income.

Reasons for claiming

Back, and mental health issues (such as anxiety and depression) tend to be the biggest areas for claims, with wider musculoskeletal problems, cancer and heart-related issues also being key areas.

Added value

As is the case with most protection policies these days, there may also be added value benefits that are designed to help get you back on the road to recovery, such as rehab, physio, and counselling.

Whatever your situation, we’d fully assess the suitability of the options on offer. And you can take comfort from the fact that we operate in this sector day-in day-out, plus have the qualifications and expertise to deliver advice that meets your needs.

As with all insurance policies, terms, conditions and exclusions will apply.

(Source: Association of British Insurers, 2023 data, September 2024 release)
(Source: *Office for National Statistics,
Labour market overview, March 2025 release)