Best income protection insurance in the UK 2025

What is the best income protection insurance in the UK in 2025?

The “best income protection insurance” for you will ultimately depend on your personal circumstances, but in this guide, we give you a useful overview of the leading companies and their policies.

Drawing on the latest product data and our expert insight, these are our highest-rated income protection insurance providers in 2025:

1. LV=

myTribe rating: 5.0

LV= is a mutual insurer dating back to 1843. It has over a million members across its range of retirement, investment and protection products, and has built a strong reputation for innovation in the income protection market.

Key product details:

• Amount of income you can protect: 60% of your annual gross income
• ‍Maximum annual benefit: £250,000
• ‍Claim payment period: Full policy term, or 1 or 2 years (Budget Income Protection)
• ‍Deferment periods: 3, 6 or 12 months (plus 1 or 2 months depending on your job)

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LV= income protection insurance policies

Unlike many other providers, LV=’s income protection insurance (Flexible Protection Plan) keeps things refreshingly simple when it comes to calculating how much income you can receive. It lets you cover up to 60% of your gross annual earnings, with an annual benefit cap of £250,000. Policies must last for a minimum of 5 years and end before your 70th birthday. You can choose between guaranteed premiums or reviewable premiums, and a selection of deferment periods - the time you wait before your payments begin - ranging from 1 month to 12 months.

LV=’s income protection insurance policy comes with some handy extra benefits including fracture cover, which pays a lump sum if you’re diagnosed with a specified bone fracture, and a death benefit of up to £10,000 if you pass away before your policy ends. Another appealing feature is its Income Protection Benefit Guarantee, which ensures you’ll receive a minimum monthly payout of £1,500, even if your income has decreased when you claim. It’s a reassuring safety net if your income fluctuates.

For those looking to keep costs down, LV= also offers a Budget Income Protection option. It works in the same way as its standard income protection policy, except that it will pay out for a shorter maximum period of either 12 or 24 months, depending on which option you choose.

LV= customer reviews

LV= has a high 4.5/5 star rating on Trustpilot from over 80,000 reviews. These reviews are based on LV=’s full range of financial products rather than just income protection insurance, but its strong rating suggests that most customers are happy with the service they receive.

LV= payout rate

In 2024, LV= paid out almost £18.2 million in income protection claims to 1,166 individuals who were unable to work. Overall, it paid 90% of all income protection claims that it received.

LV= perks

As an LV= member, you’ll receive a package of additional benefits, including access to medical advice and support services for both you and your partner. LV= Doctor Services included as standard with all LV= protection policies, provides access to six expert medical services, ranging from remote GP appointments and second medical opinions to discounted health assessments.

2. Aviva

myTribe rating: 5.0

Aviva is a household name, serving over 12 million customers across its insurance, wealth and retirement products. Aviva was the go-to option for income protection in 2024, selling more new policies than any other provider (source: Swiss Re Term Health Watch 2025), a sign of its popularity among UK consumers.

Key product details:

• Amount of income you can protect: 65% of your first £60K, then 45% above £65K
• Maximum annual benefit: £240,000
• Claim payment period: Full policy term, or 2 years. (1 year for Living Costs Protection)
• Deferment periods: 4, 8, 13, 26, 52 or 104 weeks

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Aviva income protection insurance policies

Aviva’s flagship income protection insurance policy is Income Protection+, which lets you cover up to 65% of the first £60,000 you earn, plus 45% of anything above this, up to a maximum of £240,000 per year. It’s a solid product that includes a benefit guarantee, meaning that if your salary drops after taking out the policy, your payout won’t automatically reduce.

You can choose between a limited benefit period of two years or long-term income protection that pays out while your policy runs. There’s the option to increase your cover each year, and you can select either guaranteed or reviewable premiums. Income Protection+ comes with a wide range of extra benefits as standard that add further value, including waiver of premium, a back-to-work benefit, hospital benefit and trauma benefit.

Aviva also offers a more affordable income protection cover called Living Costs Protection. It pays out much smaller amounts of between £500 and £1,500 a month for up to 1 year. It’s designed to help cover your essential bills such as rent or mortgage payments, utilities and groceries, while you recover.

Aviva customer reviews

Aviva has a Trustpilot rating of 4.3 out of 5 stars, from over 50,000 customer reviews. Most of these reviews are for Aviva’s other products and services, so it is worth spending some time to filter out those that relate specifically to its income protection.

Aviva payout rate

In 2024, Aviva paid out on 90.1% of all income protection claims it received. Overall, it paid £61.8 million across 4,300 income protection claims, by far the highest total of all the income protection insurers we reviewed.

Aviva perks

Aviva income protection cover comes with Aviva DigiCare+, which gives you free access to a host of health and wellbeing services through its app. These include an annual health check, mental health support, consultations with a nutritionist, second medical opinions and discounts on gym and home fitness services.

3. The Exeter

myTribe rating: 5.0

The Exeter is another mutual friendly society in our list of best income protection insurance providers and has been around since 1888. It’s a solid all-rounder, offering cover for both short- and long-term needs, with a consistent claims record to match.

Key product details:

• Amount of income you can protect: 60% of your first £100K gross earnings, then 40%
• Maximum annual benefit: £120,000
• Claim payment period: Full policy term, or 2 or 5 years
• Deferment periods: Day 1 or 1, 4, 8, 13, 26 or 52 weeks. (Day 1 and 1 week waiting periods are not available for level guaranteed premiums)

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The Exeter income insurance protection policies

The Exeter’s Income First plan covers up to 60% of your taxable income on earnings up to £100,000, and 40% of income above that, with a maximum annual benefit of £120,000. There are three premium options: level guaranteed premiums, age-costed guaranteed premiums and age-costed reviewable premiums. You also get plenty of flexibility on the length of your claim period to suit your needs and budget, with options for full cover for the duration of the policy or a shorter benefit period of two or five years to keep the cost down.

An interesting underwriting feature is that The Exeter doesn’t require routine medical evidence if you’re under the age of 42. This makes the application process quicker and more accessible for younger individuals. If you're a teacher or NHS medical professional, The Exeter also offers waiting periods designed to align with your existing sick pay arrangements, so that your income protection kicks in exactly when you need it.

There’s also a fixed benefit option that lets you secure your full monthly benefit, up to £7,500 per month, if you provide financial evidence within six months of starting your policy. This gives you peace of mind that even if your earnings drop before you claim, you’ll still receive your fixed benefit. A waiver of premium is included as standard with Income First too.

The Exeter customer reviews

The Exeter has a Trustpilot rating of 4 out of 5 stars from 1,100 reviews. While that's a relatively modest sample size compared with some of the big insurance brands, most reviews are positive, showing that members are generally satisfied with the service they’ve received.

The Exeter claims payout

In 2024, The Exeter paid 93% of income protection claims to 1,091 members. Even better is the fact that it has maintained a 93% average payout rate over the past 10 years, which demonstrates a consistent claims track record.

The Exeter perks

Income protection customers receive free access to HealthWise, (opens in a new tab) The Exeter’s member benefits app. It provides unlimited remote GP appointments, plus up to six sessions each year for physiotherapy, mental health support, dietitian advice and lifestyle coaching. Members can also access up to two second medical opinion consultations annually, along with a yearly health MOT. Altogether, these features add valuable extra support beyond your income benefit.

4. Royal London

myTribe rating: 5.0

Royal London is the UK’s largest mutual for life insurance, pensions, and investments, with over 2.3 million members. It has the highest Trustpilot score of all our top income protection providers.

Key product details:

• Amount of income you can protect: 65% of your first £60,000 gross earnings, then 50% above £60,000
• Maximum annual benefit: £250,000
• Claim payment period: Full policy term, or 1, 2 or 5 years
• Deferment periods: 4, 8, 13, 26 or 52 weeks

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Royal London income protection insurance policies

Through its Personal Menu Plan, Royal London’s income protection will cover up to 65% of the first £60,000 of your pre-tax earnings, and 50% of anything above that, up to a maximum payment of £250,000 a year. It comes with a minimum income guarantee of £1,750 a month (or £3,500 for doctors and surgeons), and covers you based on your own occupation. You can choose whether you want your payments to last for one year, two years, five years or for the whole length of your policy.

A neat feature is the back-to-work payment, which supports you if you have a 13, 26, or 52-week deferred period by providing financial assistance in your first and second months back at work. There’s also a death benefit of 12 times your monthly premium.

Fracture cover and hospitalisation payment is standard with every income protection policy, as well as waiver of premium, which means Royal London will pay your premiums for you if you can’t work due to illness or injury.

Royal London customer reviews

Royal London stands out with the highest Trustpilot rating among the income protection insurance companies we reviewed, scoring a very high 4.6 out of 5. Its customer service gets frequent praise in the reviews, although these ratings reflect Royal London’s full range of products, not just income protection. So while it’s a good indicator of overall satisfaction, it doesn’t tell the full story about its income protection alone.

Royal London payout rate

Royal London's income protection claims payout percentage was 86.8% (opens in a new tab) in 2024. It paid over £8 million in income protection claims to 1,259 customers.

Royal London perks

When you take out a Royal London income protection policy you’ll also get access to some health and wellbeing services through its Helping Hand support. These are available at any time while your policy is active. The support includes virtual GP appointments, physiotherapy advice, mental health support and help from a dedicated nurse.

5. Cirencester Friendly

myTribe rating: 4.5

Founded in 1890, Cirencester Friendly is a mutual organisation, meaning it has no shareholders to pay so it can focus entirely on its 44,000 members. As specialists in income protection insurance, Cirencester not only offers a strong product, but also led the way in claims payout rates last year.

Key product details:

• Amount of income you can protect: 65% of your gross earnings
• Maximum annual benefit: £52,000
• Claim payment period: Full policy term, or 2 years
• Deferment periods: 1, 4, 8, 13, 26 or 52 weeks

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Cirencester Friendly income protection insurance policies

Cirencester's Friendly's main income protection plan, My Earnings Protected, covers up to 65% of your gross earnings, with a maximum payment of £52,000 per year. The income calculation is easy to grasp, but the annual benefit cap is the lowest among providers in this guide. The policy provides income protection cover on “own occupation” terms, so you will be covered if you can’t do your own specific job. Premiums are guaranteed unless you choose an annual escalating benefit.

When it comes to claim periods you can choose short-term income protection, which limits payments to a maximum of two years per claim, or long-term cover that pays out until your policy ends. Deferred periods range from one to 52 weeks, and there's also a split deferred option so you can stagger when your income payments begin. This is useful if your income from your job gradually reduces during a prolonged illness.

A standout feature of Cirencester Friendly’s income protection insurance is its favourable underwriting, which doesn’t apply higher premiums if you are a smoker, have a higher-risk occupation or take part in hazardous hobbies (motorsports is the only exception). You can customise your policy with optional add-ons such as severe injury cover, fracture and hospitalisation benefit, or immediate death benefit, though these will increase the cost.

Cirencester Friendly customer reviews

The absence of any customer reviews on Trustpilot means it's tricky to gauge how customers feel about Cirencester Friendly’s level of service. However, it has won plenty of industry awards for its service, including Best Protection Service at the 2024 Investment Life & Pensions Moneyfacts Awards.

Cirencester Friendly payout rate

Cirencester Friendly boasts the highest income protection claims payout rates in the market. In 2024, it paid an impressive 95.8% of claims, the same high level as in 2023. This consistency suggests that Cirencester Friendly has a reliable track record in supporting its members when it matters most. In total, 1,354 claims were paid to its members last year, worth over £10 million.

Cirencester Friendly perks

Cirencester Friendly’s income protection insurance is packed with added value benefits that go beyond financial cover. These include 24/7 access to a virtual GP service, emotional support and second medical opinions through a Personal Nurse Adviser, and a personalised health and wellbeing programme. Members also get a £2,500 children’s critical illness benefit lump sum. Additional perks include free telephone legal advice and exclusive discounts with popular brands such as Apple and M&S.

6. Vitality

myTribe rating: 4.5

Vitality has been shaking things up in the protection market since it hit the UK in 2007, and that fresh approach carries through to its income protection. It's the only income protection provider that rewards you for staying fit and healthy.

Key product details:

• Amount of income you can protect: 60% of your first £60,000 gross earnings, and 50% above £60,000
• Maximum annual benefit: £200,000
• Claim payment period: Full policy term, or 1, 2 or 5 years
• Deferment periods: 7 days (self-employed only), 1, 2, 3, 6, 12, 24, or 60 months

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Vitality income protection insurance policies

Vitality’s income protection insurance (Personal Protection Plan) offers flexibility and some standout features. It covers 60% of your verified earnings up to £5,000 a month, plus 50% of anything between £5,000 and £15,000. There’s an overall cap on payouts at £200,000 a year. As with some other providers, there’s the added certainty of an Earnings Guarantee, which guarantees a monthly benefit up to £1,500 per month (£8,000 if you verify your earnings within the first six months).

There’s an extensive range of deferment periods, with a shorter seven day option if you are self-employed, as well as the ability to split your cover across two different waiting periods. If you're concerned about the impact of inflation, you can choose to have your benefit increase in line with the Retail Prices Index.

As you’d expect from Vitality, there’s an incentive for you to look after your health. Its unique income booster can top up your monthly benefit by up to 20% for six months depending on your Vitality status. The healthier your lifestyle through the Vitality Programme, the bigger the potential boost if you claim. On top of that, you get an unlimited Recovery Benefit that gives you access to private healthcare support during a claim. This includes physiotherapy, mental health support, cancer support and rehab for your nervous system.

Vitality customer reviews

Vitality has an excellent score of 4.4 out of five stars on Trustpilot, although this relates to all of its protection and health insurance products. Most reviews speak positively of the customer service that Vitality has delivered, although some income protection insurance customers have had disappointing claims experiences.

Vitality claims payout

Vitality paid 94.2% of Income Protection claims in 2024. It paid 557 claims worth £1.8 million, up from £1 million the previous year.

Vitality perks

Vitality income protection cover includes access to its renowned Vitality Programme, which rewards healthy living. By earning Vitality points through an active lifestyle, you can unlock discounts on wearable tech and gym memberships, as well as rewards like Vue or ODEON cinema tickets and handcrafted drinks from Caffè Nero. If you add the Optimiser option to your plan (for an additional cost) and maintain a healthy lifestyle, you can also access Vitality’s best premium which is 30% lower than its standard premium.

7. Legal & General

myTribe rating: 4.5

Legal & General is a major financial services player, with over 10 million customers across its range of insurance, retirement and savings products. Last year, it was the second-best-selling income protection provider (source: Swiss Re Term & Health Watch 2025), highlighting its strong presence in this market.

Key product details:

• Amount of income you can protect: 60% of your first £60K, then 50% above £60K
• Maximum annual benefit: £240,000
• Claim payment period: Full policy term or 1 or 2 years
• Deferment periods: 4, 8, 13, 26 or 52 weeks

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Legal & General income insurance protection policies

Legal & General’s Income Protection Benefit plan allows you to cover up to 60% of your gross annual income on earnings up to £60,000, and 50% on any income above that. The maximum annual benefit that you can receive is £240,000. Premiums are guaranteed, unless you choose the increasing benefit option, in which case the premiums and cover rise each year. To help make the policy more affordable, you can opt for the Low Cost option which limits the payment period to 12 or 24 months instead of the duration of the policy.

Another welcome feature of Legal & General income protection cover is a stepped benefit letting you choose two different deferred periods and monthly benefit amounts. Other benefits that come as standard include waiver of premium, hospitalisation benefit, an income guarantee of £1,500 (£3,000 if you’re an NHS dentist, doctor, midwife, nurse or surgeon) and life cover of 12 times your monthly premium.

Legal & General also offers a Low Start Income Protection policy, useful if you need lower initial premiums. With this option premiums start off cheaper but increase annually in line with your age. It can be a good fit if you are self-employed or want to manage costs in the early stages of your career or business. The maximum annual benefit is lower though, capped at £120,000, and you won’t get some of the additional features of Legal & General’s standard Income Protection Benefit product.

Legal & General customer reviews

Legal & General has a Trustpilot rating of 4.2 out of 5 stars from over 25,000 reviews which is classified as "great". As with most big insurers, these ratings apply to Legal & General’s full suite of financial products, so it is worth filtering the reviews to find how its income protection insurance customers rate the service they have received.

Legal & General payout rate

Legal & General had an income protection claims payout rate of 84% in 2024, which is the lowest rate of all the providers in our top ten list. It paid 797 income protection claims totalling £7.9 million.

Legal & General Perks

Beyond financial protection, Legal & General income protection insurance offers extra perks in the form of Wellbeing Support provided by RedArc and rehabilitation support services to help you return to work. There’s also a free Care Concierge service, so you and your family can speak to a later-life care expert for advice on care options.

8. Holloway Friendly

myTribe rating: 4.5

Founded in 1875, Holloway Friendly invented the concept of income protection insurance in the UK, so it has plenty of experience of the market. It has stayed true to its roots by remaining a mutual society, and now has almost 30,000 members.

Key product details:

• Amount of income you can protect: 65% of your gross earnings
• Maximum annual benefit: £65,000
• Claim payment period: Full policy term or 1, 2 or 5 years.
• Deferment periods: 1, 4, 8, 13, 26 or 52 weeks

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Holloway Friendly income protection insurance policies

Holloway Friendly, is one of the few providers not to use a tiered system to work out how much of your income you can insure. It’s My Sick Pay income protection plan simply covers up to 65% of your pre-tax earnings, with a maximum annual benefit amount of £65,000. This straightforward calculation is easy to understand and can provide more cover, especially for higher earners, compared to the tiered income structures used by some other insurers.

You can opt for benefit periods of one year, two years, or full cover until the policy ends. There’s also an option to link your cover to the cost of living, helping your protection keep pace with inflation. You can choose from three premium types: guaranteed, age-costed or reviewable.

Another welcome feature of Holloway Friendly income protection cover is its Drop in Earnings Guarantee which ensures you’ll receive up to £1,500 per month (or your original cover amount, if lower) if your income falls after taking out the policy. Additional benefits include up to 6 months’ sick pay if you're diagnosed with a terminal illness, rehabilitation support and a financial top-up for up to a year if you return to work part-time or in a lower-paid role.

Holloway Friendly customer reviews

Holloway Friendly has a Trustpilot rating of 4 out of 5, although this is based on a very small number of reviews (152 as of September 2025). However, many customers praise the quality of service they’ve received, and because Holloway Friendly only offers income protection insurance, you can be confident that all its reviews are relevant.

Holloway Friendly payout rate

In 2024, Holloway Friendly paid out 88.3% of the income protection claims it received, up by 2% on 2023. It paid out £5.13 million across 607 claims, with 96.5% of decisions made within 30 days.

Holloway Friendly perks

If you take out Holloway Friendly income protection cover you and your family will get access to HealthHero which gives you unlimited free access to GP consultations. There’s also extra support in the shape of free advice and counselling helplines. Finally, you’ll be eligible for Holloway’s member support fund which can provide financial support and allow you to pause your payments for up to six months.

9. Zurich

myTribe rating: 4.0

Zurich is a global insurer active in the UK market, providing a range of protection products including income protection. It recently revamped its income protection insurance policy to give policyholders greater certainty around payments and more comprehensive cover.

Key product details:

• Amount of income you can protect: 65% of your first £60,000 gross earnings, and 45% above £60,000.
• Maximum annual benefit: £240,000
• Claim payment period: Full policy term or 24 months.
• Deferment periods: 4, 8, 13, 26, 52 or 104 weeks

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Zurich income protection insurance policies

The maximum benefit with Zurich Income Protection is 65% of the first £60,000 of your gross income and 45% of anything you earn above that, up to a maximum benefit of £240,000 each year. The monthly benefit can be paid until the end of your policy term, or for a maximum of 2 years if you want to reduce costs. You can also choose single or dual deferment periods.

As part of its recent improvements, Zurich has added a Maximum and Minimum Benefit Guarantee, ideal if you are a contractor or self-employed and your income fluctuates. The maximum benefit guarantee means that if you can’t work and your insured benefit is within 10% of the maximum allowed based on your earnings, Zurich will pay the full monthly benefit amount (minus any ongoing income). If you don’t meet those requirements, the Maximum Benefit Guarantee will still cover your monthly benefit up to £1,500 if your salary has dropped.

Other notable features of Zurich’s income protection cover include a return to work package so you’ll keep getting a percentage of your benefit if you go back part-time or take a lower-paid job, and waiver of premium, so you won’t have to pay premiums while you're claiming. You can choose to add extra benefits for an additional cost, such as multi-fracture cover and Income Protection Enhanced, which includes trauma cover, a hospital stay benefit and a funeral benefit.

Zurich customer reviews

Zurich currently holds a Trustpilot score of 3.7 out of 5, which is considered “average” and is the second-lowest customer service rating among the income protection providers in our guide. However, this score reflects feedback across all of Zurich’s insurance and retirement products, so it’s worth reviewing individual comments to see if customers rate its income protection service more favourably.

Zurich claims payout

Zurich paid over 95% of all income protection claims it received in 2024, totalling £4.8 million, the second highest of the income protection providers in this guide.

Zurich perks

Disappointingly, Zurich income protection, unlike all the other providers in this list, doesn’t come with any additional value added-services or benefits. Zurich does offer its Accelerate package which is a range of services that give you and your children access to expert medical services to investigate, diagnose and treat specific serious medical conditions. However, you’ll need to pay extra for this package.

10. British Friendly

myTribe rating: 4.0

British Friendly was set up in 1902 as a mutual society to provide sickness benefits for commercial travellers. Today, it looks after 25,000 members and is purely focused on income protection insurance, including helping people who often struggle to get cover elsewhere, such as the self-employed, manual workers and those in the gig economy.

Key product details:

• Amount of income you can protect: 65% of your first £60,000 gross earnings, then 45% up to £100,000.
• Maximum annual benefit: £57,000
• Claim payment period: Full policy term or 1, 2 or 5 years
• Deferment periods: 4, 8, 13, 26 or 52 weeks (1 week option on age-costed guaranteed premiums)

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British Friendly income protection insurance policies

British Friendly offers two income protection plans: Protect and Breathing Space. Protect is its main product and is aimed at people with more stable incomes. It covers 65% of your gross earnings up to £60,000, and 45% on anything between £60,000 and £100,000. The maximum income you can receive each year is £57,000, which is lower than most other income protection providers, so if you're a high earner, it might not be enough.

You can personalise your policy by choosing between level guaranteed or age-costed guaranteed premiums, picking your deferment period, and deciding whether you want the payout to last one, two, or five years, or until your policy ends.

Breathing Space is designed for those with irregular or unpredictable incomes, such as the self-employed or gig workers. There’s no financial underwriting when you apply or claim, which keeps things simple. However, your monthly payout is restricted to between £541 and £1,250, and you can only claim for either one or two years at a time. Also, keep in mind that with this plan your premiums will go up each year as you get older. Both of British Friendly’s income protection policies let you add extras like Fracture Cover and Children’s Critical Illness Cover at an extra cost.

British Friendly customer reviews

British Friendly has the lowest Trustpilot rating of the income protection insurance providers in this guide, scoring 3.5 out of 5. That said, it’s based on a small number of reviews (279 as of September 2025) and 71% gave it the full five stars, so many customers are satisfied. In terms of service, British Friendly reported that in 2024 it took an average of nine working days to pay out claims (excluding delays caused by third parties or its members), and calls were typically answered within 90 seconds, which is pretty solid.

British Friendly payout rate

British Friendly paid out 86% of income protection claims in 2024, which is lower than many of the other top providers in the market. In total, more than £5 million was paid out across 1,023 new claims.

British Friendly perks

British Friendly’s income protection cover comes with a bunch of useful extras free of charge. Its Mutual Benefits programme lets you and your family tap into a range of digital health services, like 24/7 GP appointments, mental health support, physio sessions, second medical opinions and discounted annual health checks. On top of that, its BF Care discretionary benefit can pay out up to £2,000 if you go through certain major life events.

Which other providers offer income protection insurance?

Beyond our top 10 income protection insurance providers there are some other providers that you might want to explore to find the best policy for your needs. However, keep in mind that some of these insurers only offer income protection that will pay for a limited time period.

Other income protection insurance providers to consider include:

• dg Mutual
• Dentists’ Provident
• Guardian
• National Friendly
• NFU Mutual
• Shepherds Friendly
• Wesleyan

What is income protection insurance? 

Income protection is a type of insurance that replaces part of your salary with a regular payment if you are unable to work as a result of illness or injury. It gives you the reassurance that you can continue to pay your household bills, from mortgage or rent to utilities, until you are back on your feet. A significant benefit is that you can claim as many times as you need to while your income protection policy is in place.     

Income protection insurance should not be confused with other types of protection. For instance, critical illness cover will provide a one-off lump sum if you are diagnosed with a serious health condition, such as cancer, heart attack or stroke, while unemployment protection will usually pay a tax-free monthly sum for up to a year if you are made redundant. An income protection insurance policy does not provide unemployment cover.

How does income protection insurance work?

The amount you will receive won’t replace your whole salary, but could be as much as 65% of your gross monthly income – you won’t pay income tax on these payments, bringing the overall monthly payments close to what your take-home pay would have been. 

You may be eligible for statutory sick pay (SSP) from your employer for up to 28 weeks when you first go on sick leave. Income protection could provide a useful financial buffer after SSP has run out. An income protection policy will include a ‘deferred’ period, which is essentially a waiting period before your insurer will start paying you. Deferred periods can range from four weeks to two years, with common options including eight, 13, 26 or 52 weeks. 

You’ll need to decide whether to choose a short-term policy that provides monthly payments for a limited time – typically 12 and 24 months – or whether you’d prefer a long-term policy that lasts until the end of your policy (usually set up to match when you retire). Insurers typically expect you to do this before your 70th birthday. 

To receive payments from your income protection policy, you’ll need to meet your insurer’s “definition of incapacity.” These can be:

• ‘Own occupation’: whether you can do the job you carried out before your illness or injury.
• ‘Any suited occupation’: whether you can carry out an alternative job, based on your skills, professional qualifications and work history.
• ‘Any occupation whatsoever’: whether you can work in any employment at all.
• ‘Activities of daily living’: whether you can carry out certain tasks, such as writing, walking, or bending, which are part of daily life. It’s often used if you are a houseperson or work low hours. 

How long it will take your insurance company to settle your claim will depend on the complexity of your case and whether the insurer requires additional medical reports – but given that the shortest waiting period until you can receive your claim is usually four weeks, both you and your insurer can use this time to get all the paperwork needed to make a decision.

What are the main types of income protection?

There isn’t a ‘one size fits all’ cover to protect your finances in the event of an illness or injury, but a big factor is how long you need the policy for, which falls into two main categories: 

• Long-term income protection: This will cover you against sickness and injury for as long as you need it and have cover in place – until you return to work, retire or die.
• Short-term income protection: This generally pays you a monthly income limited to one or two years, though some insurers offer cover up to five years.

A third option available is a Holloway contract, which offers income protection with an investment element that pays out a lump sum when the policy ends. A few Friendly Societies offer these policies and they can only be sold through financial advisers that are regulated for investment business by the Financial Conduct Authority (FCA).

Who should get income protection insurance cover?

Income protection insurance should be a priority for most working people, given the financial impact that a long-term illness or injury would have on the average household’s ability to meet living expenses and financial commitments. Research from the FCA suggests that one in ten people don’t have any cash savings that they could draw on in an emergency, while 21% have less than £1,000.

If you are self-employed, then you may be an ideal candidate for income protection. Not only would you have your household bills to pay but you’ll also have the additional worry of keeping your business afloat while you’re off work. With no sick pay from an employer to cushion the blow, household bills and debts could soon mount up, leaving you facing financial hardship.

If you are employed but your employer only offers the minimum support of statutory sick pay for 28 weeks, it might be sensible to have income protection insurance in place. With SSP only paying £118.75 a week, it's unlikely to be enough to pay essential bills and to clothe and feed a family. 

Income protection is especially worth considering if you:

• have a young family or other dependants and are the main breadwinner
• have a mortgage or other debts (e.g credit cards) that you wouldn’t be able to repay while you’re ill
• have little or no savings you can fall back on. 

However, Income protection insurance may not be right for everyone, so consider how else you could support yourself if you were sick or injured:

• Employer-provided cover: Some employers include income protection as part of their benefits package. Check your employee handbook or speak to your HR department to see what cover you may have.
• State benefits: Once your SSP ends, you may be eligible for other benefits, such as Universal Credit or Employment and Support Allowance.
• Personal savings: You may have savings you can rely on – though these could soon dwindle if you have no income.
• Support from your family: You may have a partner, spouse or parent who could help support you financially while you recover. 

How much income protection do you need?

To work out how much income protection cover you may need, start by writing a list of all your essential monthly outgoings. This should include everything from mortgage or rent and utility bills to food and living costs. Keep in mind that some costs may increase while you’re recovering at home, such as your energy bills, while others may disappear completely – like the cost of your commute.

As mentioned earlier, insurers will also set limits to the monthly payment you’ll be entitled to, paying from about half to two thirds your usual gross monthly salary. However, payments are often on a sliding scale depending on your annual salary. For example, insurers may offer you a higher percentage or your salary – say 60% or 65% for the first £60,000 you earn, but then offer a lower amount – say 45% or 50% – for any income over £60,000. 

There will also be a cap on the maximum amount of income protection insurance you can receive – for example, a maximum payment of £240,000 a year.   

How much does an income protection policy cost?

How much you’ll pay for income protection will depend on your personal circumstances and the level of cover you choose. When calculating your income protection premium insurers typically consider the following factors:

• Your age: The older you are when you take out a policy, the higher your premiums will be. 
• Occupation: Jobs with a higher risk of injury or illness, such as firefighters or scaffolders typically attract higher premiums.
• Income level: The more of your salary you choose to insure, the more you’ll pay.
• Length of policy: Short-term income protection insurance cover of one, two or five years will have a cheaper cost than a long-term plan that pays until your policy ends or you retire.
• Deferment period: Longer deferment periods before your payment kicks in will mean more affordable premiums.
• Definition of incapacity: Premiums are typically lower if you're willing to accept a broader definition (e.g. being unable to work in any job, rather than your own job).
• Medical history: You’ll pay less if you are in good health. Pre-existing medical conditions may increase costs or lead to exclusions.
• Lifestyle factors: Smoking, heavy drinking, high BMI, or participating in high-risk hobbies can all push up the price.
• Type of cover: Whether you take out level cover that remains the same throughout the policy, or increasing cover where your premiums and benefit rise each year, will impact the cost. Adding optional extras such as hospitalisation benefit or fracture cover will also raise your premium with some providers.

For more insight into the cost of income protection read our guide.

How can I reduce the cost of income protection cover?

If you’re worried about whether you can afford the monthly premiums, there are ways to reduce the cost of an income protection insurance policy.

One way of doing this is to agree to wait longer until your income protection payments kick in – the longer you defer, the cheaper your premiums will be. But you’ll need to make sure you have enough money to see you through the deferment period. Perhaps you can use savings to tide you over the first few months of sick leave or you may have a generous employer who pays sick leave beyond the statutory amount. 

Choosing a short-term policy, which generally only offers cover for one, two or five years, will be cheaper than a long-term plan that pays out until you retire. However, you’ll need to be comfortable with the idea that your payment might finish before you’re ready to return to work.

Another way to reduce premiums is to insure a smaller percentage of your income. This means lower monthly premiums but also smaller benefits if you become ill or injured. It might be an option that suits you if you have a partner who can help financially, no dependants or can manage on a reduced income for a time.

What are the most common reasons for income protection claims?

If your job is deskbound at the computer, you won’t be surprised to learn that the highest number of successful income protection claims in 2024 was for musculoskeletal problems, such as neck and back pain. This accounted for 34% of claims last year according to the Association of British Insurers (ABI). 

Research by LV= supports this, with almost two in five (39%) people making a claim to the insurer for musculoskeletal issues. One in five (21%) claimed after a cancer diagnosis, while mental health conditions accounted for 15% of claims. Heart and stroke-related conditions each accounted for 3% of claims in 2024.

Can you get income protection if you have a medical condition?

If you have a pre-existing medical condition, or there is family history of a serious medical condition, it can be harder to get income protection, and it’s likely to be more expensive. Some insurers will add a pre-existing illness to a list of exclusions, only insuring you for a new illness or injury. Insurers will use their own set of eligibility criteria to assess your application. So while some insurers might accept a health issue, others might not.

You must declare pre-existing health conditions, as failure to do so could result in your insurer rejecting any future claim.

How to choose an income protection insurance provider

Once you have worked out your monthly budget, taking into account savings you could dip into and benefits you might receive while on sick leave, you can start researching suitable income protection insurance cover. Here are five tips to help you choose the right income protection provider:

1. Decide what’s important to you. Could you manage financially with a long deferment period or would you need an income quickly? Check that the waiting periods offered by insurers align with your financial situation and how long you could realistically cope without a payment. 

2. Would you prefer long-term protection that will see you through until you reach retirement age, or is short-term cover more affordable for you? Also, read the small print to see if any pre-existing medical conditions or any family history of medical issues are not covered.

3. Customer service matters, especially when you're unwell and relying on timely support. No one likes hanging on the phone to speak to customer service or insurers that are slow to handle a claim. You can get a snapshot of whether an insurer is treating its customers fairly by reading online reviews on Trustpilot. 

4. Most protection providers now publish their claims statistics online each year. Review an insurer’s claim history to see what percentage of claims were settled. According to the ABI, 80% of all individual and group income protection insurance claims were settled in 2024. 

5. Using a financial adviser or insurance broker to search the market can take the stress out of finding the right income protection. Many income protection policies are only available through advisers, and their specialist knowledge can prove invaluable.

Is income protection worth it?

Ultimately, whether income protection is worth it for you depends on your personal situation and how much financial risk you're willing to take. If you are unsure about buying income protection insurance, here are some pros and cons to to help you decide:

Income protection insurance pros

• Income protection can provide a regular income, helping you stay on top of your bills and outgoings.
• It can pay out for many years (often up to your retirement age) depending on your cover.
• You are not limited to one claim – with income protection you can claim as and when you need it during the policy term. 
• Unlike critical illness insurance, which only pays out for specific illnesses, income protection generally covers any illness or injury that prevents you from working.
• Besides a monthly payment, you may be able to access rehabilitation services and a wellbeing team.

Income protection insurance cons

• Receiving monthly payments after a claim may affect some means-tested benefits.
• Income protection policies can exclude pre-existing medical conditions or charge more to cover them.
• It can be expensive if you are older, want a high level of cover or work in a high-risk job.
• You’ll have to get through your chosen deferred period before you receive your first payment.
• Income protection insurance can be complicated with varying definitions of incapacity, income calculations, exclusions and conditions to understand.