Income Protection

---

Income protection insurance (sometimes known as permanent health insurance) is a long-term insurance policy designed to help you if you can’t work because you’re ill or injured, but it shouldn't be confused with life insurance.

Income protection ensures you continue to receive a regular income until you retire or are able to return to work.

It replaces part of your income - if you can’t work because you become ill or disabled.

It pays out until you can start working again - or until you retire, die or the end of the policy term - whichever is sooner.

There’s often a waiting period before the payments start - you generally set payments to start after your sick pay ends, or after any other insurance stops covering you. The longer you wait, the lower the monthly premiums.

It covers most illnesses that leave you unable to work - either in the short or long term (depending on the type of policy and its definition of incapacity).

You can claim as many times as you need to - while the policy lasts.

It doesn’t matter whether or not you have children or other dependants – if illness would mean you couldn’t pay the bills, you should consider income protection insurance.

Did You Know?

Each year one million people in the UK find themselves unable to work due to a serious illness or injury (ABI 2017).

Insurers pay out £13.9m per day in income protection, critical illness cover and life assurance which adds up to over £5 billion per year.

Overall, virtually all protection insurance claims (97.8%) were paid in 2017 

You’re most likely to need it if you’re self-employed or employed and you don’t have unlimited sick pay to fall back on.