What is income protection?
Income protection insurance pays you a regular monthly income if you're unable to work due to illness or injury. It's one of the most valuable types of cover you can have — because without your income, everything else becomes harder.
Unlike critical illness cover which pays a one-off lump sum for specific conditions, income protection covers you for any illness or injury that stops you doing your job. It typically pays out until you recover, retire, or reach the end of the policy term.
How does it work?
- You choose how much of your income to cover — typically up to 60-70% of your gross salary
- You select a waiting period (deferral period) before payments begin — usually 4, 8, 13, or 26 weeks
- If you can't work due to illness or injury, the policy pays out a monthly tax-free income
- Payments continue until you return to work, retire, or the policy ends
Who needs income protection?
If you rely on your salary to pay your mortgage, rent, bills, or support your family — income protection is worth serious consideration. It's especially important if you're self-employed, have limited sick pay, or are the main breadwinner.
