Protect your income when life doesn't go to plan.
Income protection can provide a regular income if illness or injury prevents you from working. Understand how it works, what affects the cost, waiting periods, benefit periods and whether this type of cover could fit into your financial plan.
Your income is one of your most valuable financial assets.
For many households, regular earnings are what pay the mortgage, rent, utility bills, food costs, transport, childcare and other everyday expenses. If an illness or injury prevents you from working, losing that income can create a significant financial pressure.
Income protection insurance is designed to pay a regular benefit when you meet the policy's definition of incapacity. The exact amount, waiting period, benefit period and conditions depend on the policy and insurer.
Estimate how much monthly income you may want to protect.
Enter your monthly income and regular essential expenses. The calculator provides an illustrative planning figure rather than a personalised insurance recommendation.
Calculate your indicative benefit
Start with your current household figures and adjust the assumptions to see how the result changes.
Potential monthly benefit
Based on your selected income replacement percentage, the illustrative monthly amount is:
The waiting period can make a big difference.
The waiting period, sometimes called the deferred period, is the time between becoming unable to work and when a policy may begin paying a benefit, subject to its terms.
Short Waiting Period
May provide earlier access to benefits but can affect the policy cost. Employer sick pay may influence whether this option is appropriate.
Two-Month Option
Can be considered when you have some workplace sick pay or savings available to cover an initial period.
Three-Month Option
A longer waiting period may suit someone with stronger emergency savings or employer sick-pay arrangements.
Six-Month Option
A longer waiting period can require a larger emergency reserve but may be relevant for some financial plans.
Your policy is shaped by more than your salary.
Insurers can consider multiple factors when assessing a policy. The exact approach varies between providers and products.
Occupation
The nature of your work and the level of occupational risk can influence eligibility, policy terms and premiums.
Age
Age can influence the cost and terms of protection, alongside other personal and policy factors.
Health
Medical history and current health can be relevant during underwriting and may affect available terms.
Policy Term
The length of cover can influence both the protection provided and the overall cost.
Waiting Period
Choosing a different deferred period can change when benefits become payable and may affect premiums.
Benefit Amount
The level of monthly benefit selected is another important consideration when comparing protection options.
Income protection can be useful, but it is not right for everyone.
Understanding both the potential benefits and limitations can help you make a more informed decision.
Potential benefits
- Can help replace part of your regular income.
- May help maintain essential household spending.
- Can complement employer sick-pay arrangements.
- May provide longer-term financial support depending on the policy's benefit period.
- Can form part of a wider household protection strategy.
Important limitations
- Policies can have exclusions, conditions and definitions that vary between insurers.
- Premiums are not guaranteed to be affordable for everyone.
- A policy may not cover every medical condition or employment situation.
- Benefit limits can restrict the amount payable.
- Claims are subject to the policy terms and insurer assessment.
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Common questions about income protection in the UK.
These answers provide general educational information. Always check the actual terms and conditions of any policy before making a decision.
Your income supports your lifestyle. Understand how you could protect it.
Start with the calculator, understand the key policy factors and explore related GrowthSmartly guides before making an insurance decision.