Your income replaced if illness or injury stops you working.
Your ability to earn is your most valuable financial asset. If illness or injury stopped you working for six months, a year, or longer — how long could you manage? Income protection replaces a proportion of your earnings on a monthly basis for as long as you need it. It is the insurance most people do not have — and the one that matters most when something goes wrong.
Monthly income if you cannot work — for as long as you need it
Income protection is straightforward in concept but complex in the detail. The policy options that matter most — definition of incapacity, deferred period, benefit amount, and policy term — vary significantly between insurers. Here is what you need to understand before choosing a policy.
The own occupation definition means your policy pays out if you are unable to perform the duties of your specific occupation — not any job. This is the gold standard. A less favourable definition, “any occupation”, only pays if you cannot perform any work at all. A physiotherapist with a back injury, a dentist with hand tremors, or an electrician with a balance condition may be unable to do their own job but technically capable of office work under a weaker definition. We only recommend policies with the own occupation definition.
The deferred period is the length of time you must be unable to work before the policy begins paying out — typically 4, 8, 13, 26 or 52 weeks. The longer the deferred period, the lower your premium. Employed people with full sick pay for six months should choose a 26-week deferral. Those with limited savings or no sick pay — particularly the self-employed — benefit most from a shorter deferral period. We match the deferred period to your actual financial resilience.
Income protection is arguably more important for the self-employed than for employees — because there is no sick pay when you cannot work. However, establishing the correct insurable income for sole traders and limited company directors requires care. Dividends, salary, retained profit — the right treatment varies by insurer and by policy. We specialise in self-employed income protection and know which insurers provide the most favourable treatment.
Mental health conditions — including anxiety, depression, and burnout — are the most common cause of long-term sickness absence in the UK, alongside musculoskeletal conditions. Despite this, some cheaper policies exclude mental health claims or apply strict limitations. We only recommend policies that provide meaningful mental health cover, including first-episode claims, without restrictive exclusions.
What happens to your mortgage if your income stops?
Statutory sick pay in the UK is currently £116.75 per week — for 28 weeks only. For most people, that will not cover the mortgage, the bills, and the cost of living. After 28 weeks, SSP stops entirely.
Income protection fills this gap. It replaces typically 50–70% of your pre-tax income on a monthly basis, for as long as you are unable to work — up to your selected retirement age in most cases.
- Pays out regardless of how long you are unable to work — no arbitrary time limit
- Tax-free monthly income — no deductions on the benefit
- Own occupation definition — you do not need to be unable to do any job
- Mental health and musculoskeletal conditions fully covered on quality policies
- Self-employed clients can insure their actual earned income
- Premiums are fixed and guaranteed for the life of the policy
Income protection — key figures
What we typically arrange for clients across London and Essex.
Income protection questions answered honestly
Income protection pays a monthly income for as long as you are unable to work — regardless of the reason (illness or injury). Critical illness cover pays a one-off lump sum on diagnosis of a specified condition. Income protection is generally better for replacing regular income over the long term. Critical illness is better for paying off a large debt like a mortgage. Many clients benefit from having both in place.
Most insurers will insure up to 50–70% of your gross income. Benefits are paid tax-free, so the net replacement rate is typically close to your take-home pay. For the self-employed, the insurable income is calculated from your tax returns, which can be complex — we handle this calculation for you.
Depending on the condition, insurers may offer cover with an exclusion for that specific condition, at a higher premium, or with a qualifying period before claims can be made for related conditions. Some conditions have minimal impact. We know which insurers are most accommodating for specific health histories and apply accordingly.
No. Payment protection insurance (PPI) was a short-term product mis-sold alongside loans and credit cards, paying out for typically 12 months. Income protection is a long-term standalone insurance policy that replaces your income for as long as you are unable to work — potentially until retirement. They are fundamentally different products.
Yes — and the self-employed are the group most in need of it, since they have no sick pay at all. We specialise in self-employed income protection and know which insurers provide the most favourable terms for sole traders, limited company directors, and contractors. The key issue is calculating the correct insurable income, which we handle for you.
Protect your income before you need to
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