Income Protection FAQs
What is income protection?
A monthly, tax-free benefit if illness or injury stops you working · typically 50-70% of gross salary, paid until you return, retire or the term ends. It is the most under-bought protection in the UK: during working age you are several times more likely to be off sick for 6+ months than to die.
What is a deferral period?
The wait before the benefit starts: 4, 8, 13, 26 or 52 weeks. Longer deferral = much cheaper premiums (26 weeks is often half the price of 4). Match it to your employer sick pay plus emergency fund · which is exactly the calculation this page automates.
How bad is life on SSP?
SSP is £118.75/week (latest rate) for up to 28 weeks · about £515/month, a quarter of median take-home. If your employer pays only SSP, serious illness is an income cliff within weeks. That gap, not the premium, is the number to stare at.
Income protection or critical illness first?
Most advisers say IP first: it covers ANY condition that stops you working (mental health and back problems top the claims tables · neither reliably triggers critical illness policies), and pays monthly for as long as needed rather than one lump sum. Ideally hold both.
Do these policies actually pay out?
Insurers report 80%+ of individual IP claims paid. The key buying choice is "own occupation" cover · the test becomes whether you can do YOUR job, not any job. Guaranteed (vs reviewable) premiums are worth the small extra for long terms.
For informational purposes only · Not advice or a quote · SSP £118.75/week for 28 weeks (latest rate) · Insurers cap benefits around 50-70% of gross · Premium comparisons are indicative · Speak to a protection broker