If illness or injury stops you from working, your income doesn’t have to stop too.

Many of us will have to take time out from work at some point through illness or injury. If you want to make sure that you have enough money to cover your monthly living expenses, Income Protection can be a very valuable type of insurance.

Income Protection Insurance provides a regular monthly payment if you’re unable to work due to illness or injury. It’s a financial safety net for when life takes an unexpected turn — so you can focus on recovery, not your next paycheque.

What is Income Protection?

Income Protection (also known as Permanent Health Insurance) replaces part of your income if you’re signed off work due to a medical condition. Unlike critical illness cover, it doesn’t pay a one-off lump sum — instead, you get monthly payments until you’re well enough to return to work, reach retirement age, or the policy ends.

Why Choose Income Protection Insurance?

  • Monthly Income if You’re Off Work – Up to 65% of your regular earnings.
  • Long-Term Security – Cover can continue for years if needed. If you have a full income protection policy, you will receive income payments until you are able to return to work your policy ends, or you pass away.

If you return to work in a lower or part-time capacity as a result of your illness then the appropriate reductions will be made in your payout but you will still be paid the benefit as a top-up to your new salary. This is called proportionate benefit. If you have a short-term income protection policy, your policy payout will last one, two or five years depending on what you chose at outset.

  • Covers all Illnesses & Injuries – Not just critical conditions.
  • Flexible Waiting Periods – Choose when payments start (e.g. after 4, 8, 13 or 26 weeks). This is usually chosen to tie in with the end of any sick pay entitlement.
  • Peace of Mind – Maintain your lifestyle and protect your financial commitments.

Who Needs Income Protection?

You might need this cover if you:

  • Are self-employed or don’t get sick pay
  • Rely heavily on your income to pay the bills
  • Are employed and don’t have Income Protection through work
  • Have dependents who rely on your earnings

Whether you’re employed, self-employed or a contractor, income protection helps bridge the gap.

What’s Covered?

Most income protection policies cover:

    • Illness or injury that prevents you from working

    • Mental health conditions

    • Musculoskeletal problems (e.g. back issues)

    • Long-term conditions (e.g. cancer, chronic fatigue)

    • Short- and long-term absences, depending on your plan

Note: Pre-existing conditions may be excluded. Always review the policy documents carefully.

Patient recovering from illness covered by income protection insurance

I am self-employed, can I still get income protection?

Income protection for people who are self-employed is readily available and for many, one of the most valuable types of insurance.

Unlike employed people, our self-employed clients tell us that if they don’t work, they simply don’t get paid.

If you have a limited company, a more tax-efficient way of insuring your income might be through an executive income protection plan. A plan like this could be offset against corporation tax and may result in a saving on your premiums, depending on your tax band. 

The levels and bases of taxation and reliefs from taxation can change at any time and are dependent on individual circumstances.

How Does It Work?

  1. You choose your cover – Decide how much of your income you want covered and how long you want cover to last.
  2. Set your deferred period – This is how long you’ll wait after becoming unable to work before payments begin.
  3. Make a claim – If you can’t work due to illness or injury, you submit a claim with medical evidence.
  4. Receive monthly payments – Get paid until you recover, retire, or your policy ends.

How much does income protection cost?

There are many factors that determine how much income protection insurance might cost. Key details such as the sum assured, the deferred period and the term of the policy will impact the amount you might pay each month.

Comparing premiums

The table below highlights the difference in monthly premiums between a full income protection policy (where the payout ends upon recovery, or the policy comes to the end of its term) and a short-term income protection policy with a set payout period. Here we use two years as an example.

Please note that any premiums mentioned are indicative only and based on this specific case study/example, which is shown for information purposes only. Premiums shown are an average of the 5 cheapest insurers. Your own circumstances will determine whether the amount payable is more or less than the figure quoted.

Based upon a male, non-smoker.

Quotes provided August 2025. *Source Solutionbuilder Quotes Comparison Service

Age in yearsSum assured per monthTerm in yearsDeferred period in weeksFull income protection cover monthly premium2 year short-term payout monthly premium
30£1,500To age 654£26.37£11.97
30£1,500To age 658£20.48£9.39
30£1,500To age 6513£15.87£5.54
30£1,500To age 6526£14.24£5.88

Please note that these type of plans do not have a cash-in value and will stop if payments to them cease.

Why Choose Us?

Many life insurance companies also sell Income Protection. Whilst comparison sites may seem like an easy route to obtain a quote, the power of an income protection policy lies in whether a claim will be paid when you need it to. 

Advice firms like Future Proof will find the most comprehensive policy for you with an insurer that has high payout rates. All insurers offer different levels of cover, which can only be broken down by reading the small print. We can do this for you. Our service is no obligation and you won’t pay us directly. We get paid by the insurer if you take up a policy with them.

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