If illness or injury stopped you working, how long would your savings last? A month? Three? That’s where Income Protection Insurance comes in — designed to keep your finances afloat when life throws the unexpected your way.
💡 What Is Income Protection?
Income Protection is a type of insurance that pays you a monthly, tax-free income if you can’t work due to illness or injury. It’s not just for major events — even common health issues like stress, anxiety, back problems or minor surgeries could trigger a claim.
You’ll receive regular payments until you return to work, your policy ends, or you retire — depending on the level of cover you choose.
🛠️ How Does It Work?
- You choose how long you want to wait before the payments start — this is your deferred period (e.g., 4, 8, 13, or 26 weeks)
- The longer the deferred period, the cheaper the premium
- You’ll typically receive up to 50–70% of your income each month
- Payments continue until you’re fit to return to work, or for a set time (e.g., 1 or 2 years)
👨👩👧 Who Should Consider It?
✅ Self-employed individuals with no sick pay safety net
✅ Employees who rely on their full income to pay the bills
✅ Homeowners with a mortgage to cover
✅ Parents with dependents or household responsibilities
✅ Anyone who wants peace of mind and financial stability
💬 What’s the Difference vs. Critical Illness Cover?
- Income Protection: pays you monthly when you’re off work due to any illness or injury
- Critical Illness Cover: pays a one-off lump sum for specific serious conditions (like cancer, heart attack, stroke)
They work best together — one handles the bills, the other clears debt or provides a financial buffer.
🔍 What Should I Look Out For?
- Check if your employer offers sick pay — and how long it lasts
- Consider your monthly expenses and how long you could cope without income
- Look at the exclusions — especially around mental health or self-inflicted injuries
- Choose a policy that’s guaranteed rather than reviewable (to avoid rising costs)
💬 Is It Worth It?
If you couldn’t work tomorrow, how would you pay your mortgage, rent, or bills?
Income Protection isn’t about getting rich — it’s about staying on track. It keeps your finances steady while you recover, helping you avoid debt, missed mortgage payments or added stress during already difficult times.
✅ Long-term security
✅ Pays when you can’t
✅ Supports recovery without financial pressure