Income Protection Insurance Ratings  Methodology

This category carries the greatest weighting in the overall rating, as it determines how your income protection policy works and the level of monthly benefit you could receive. The measures we assess include:

Maximum income benefit: The proportion of your income you can insure varies between providers, depending on their underwriting criteria. We assess both the maximum percentage of income that can be covered and the overall annual benefit cap. We also take into account the provider’s calculation method, with those offering a simpler, more transparent approach scoring higher.

Claim payment periods: We assess whether providers offer short-term cover, which pays out for a limited period (e.g. 1, 2 or 5 years per claim), or full-term (long-term) cover, which continues to pay until recovery, retirement, or the end of the policy term.

Income indexation: We evaluate the indexation options offered to policyholders who want their benefits to increase over time to offset the impact of inflation.

Deferment periods: Most income protection policies offer a range of deferment periods (the time you must wait after becoming unable to work before benefits begin). We assess the available options, including features such as dual deferred periods, and how well they align with employer-matching sick pay. Providers offering greater flexibility and a wider range of deferment periods score higher.

‍Premium options: Providers may offer guaranteed, reviewable or age-banded premiums to suit different budgets. We assess the premium options and whether you can pay monthly or annually.

Definition of disability: We look at how each provider defines incapacity to work, such as “own occupation”, “suited occupation” or “any occupation”. Policies with an “own occupation” definition offer the most comprehensive protection.

Some income protection policies include extra benefits as standard that can enhance your protection, while others offer optional benefits so you can tailor your cover for an additional cost. We assess:

Enhanced features: We assess any additional policy features that strengthen your cover beyond the basics, such as waiver of premium, fracture cover, income guarantees, terminal illness benefit, hospitalisation benefit and rehabilitation support.

Added-value benefits: Many income protection policies include a range of supplementary services to support your health and wellbeing, such as virtual GP access, second medical opinions, wellbeing apps and preventative health checks. We assess how useful these are in practice, rather than whether they simply enhance the product on paper.

Every income protection insurance applicant will be different, so it’s important to understand who each insurer is willing to cover. In this category, we measure:

Age limits: We review the minimum and maximum entry ages for income protection insurance, as well as the maximum age at which cover must end. Providers offering wider age ranges score higher.

Underwriting approach: We assess each insurer’s underwriting criteria, including whether they cater for people with pre-existing conditions, higher-risk occupations or irregular incomes. We also consider whether medical evidence or financial underwriting is required.

Income protection isn’t just about the cover; it’s also about the policyholder experience. This category looks at customer feedback and how easy the policies are to understand. We assess:

Customer reviews: We consider independent customer feedback using Trustpilot ratings and reviews to see how providers treat their income protection customers.

Clarity of product information: Our experts review every policy document to assess how clearly insurers explain their income protection cover, paying special attention to the complexity of their terms and conditions.

The most important aspect of any income protection insurance policy is how reliably it pays out when you need to claim. We measure:

Claims payout rates: We review each provider’s latest claims data to compare how often they pay claims. While a high payout rate doesn’t guarantee a future claim will be successful, a strong track record can offer reassurance.

‍Claims support: We evaluate how easy it is to make a claim and the level of support available throughout the process. This includes whether insurers meet the standards set by the Protection Distributors Group’s Claims Charter, which aims to ensure claimants receive clear, fair and timely support.

As income protection policies are often held long term, it’s important that you can adapt your cover as your circumstances change. In this category, we assess how flexible each policy is by considering:

The ability to change cover: We look at whether you can adjust your cover, such as increasing or decreasing your benefit amount, changing the deferment period or policy end date, or adding and removing optional features. We also assess what insurer approval or further medical underwriting is required.

Guaranteed insurability options: Some providers allow you to increase your cover after key life events without further medical questions. We assess when these options apply and any limits on age or benefit increases.