Income Protection Insurance is your financial safety net if illness or injury prevents you working. Rather than a one-off lump sum, it provides a taxfree monthly income, typically between 50% and 65% of your earnings. Coverage continues until you return to work, reach retirement, or hit the end of your policy—whichever comes first.
Why it’s so important
It’s not just serious illness that stops you working, common issues like stress, injury, or back pain are frequent causes of long-term absences.
Even though you might receive Statutory Sick Pay or employer sick pay initially, these usually stop after 28 weeks and rarely cover more than a fraction of your regular income.
How income protection works
- Deferred Period: Payments begin after a waiting period- typically 4, 8, 13, or 26 weeks, with longer waits meaning lower premiums.
- Benefit Amount: You’ll receive around 50–65% of your pre-tax income, capped by policy limits (often up to £60,000/year).
- Benefit Duration: Payments continue until recovery, retirement age (often late-60s or 70), or the policy ends. Short-term versions lasting 1–5 years are also available.
- Repeat Claims: You can claim multiple times, provided you return to work for a defined period (e.g. six months).
Who should consider it
- Employees who might transition from contractual sick pay to statutory sick pay after a few months.
- Self-employed individuals who aren’t eligible for employer-based sick pay.
- Anyone whose savings wouldn’t cover extended time off work, or who prefers predictable financial support.
Ready to secure your income?
Speak to one of our advisers today to explore income protection options tailored to your circumstances. We’ll help you assess:
- How much cover you need,
- Which deferred period makes sense, and
- What policy definitions and terms give the best protection for your budget.
Contact us now for a free consultation and help build your safety net, because your income matters.
Who can we help with income protection?
We can help people in Coventry, Warwick, Leamington Spa, Stratford upon Avon, Kenilworth, Nuneaton, Bedworth, Atherstone, Coleshill, Southam, Rugby and the surrounding areas in our office and the rest of the UK via telephone/ video call.