Your income is the foundation of your lifestyle. It pays your mortgage or rent, covers your bills, and supports your family. But what would happen if an illness or injury meant you couldn’t work?
That’s where income protection insurance comes in.
What is Income Protection Insurance?
Income protection insurance provides you with a regular, tax-free income if you’re unable to work due to illness or injury.
Instead of a one-off payout, it gives you ongoing monthly payments — helping you maintain your standard of living while you recover.
It’s not just for the self-employed — it’s valuable for anyone who relies on their income.
Why is Income Protection Important?
Many people underestimate the financial impact of being off work long-term.
- Over 1 million people in the UK are off work due to long-term sickness
- The average claim lasts over 2.5 years
- Statutory Sick Pay is currently just £116.75 per week (2024/25) for up to 28 weeks
For most households, that’s simply not enough.
Income protection helps bridge that gap — ensuring you can continue to cover:
- Mortgage or rent
- Household bills
- Food and daily living costs
- Family expenses
How Does Income Protection Work?
Policies can be tailored to suit your needs. Key features include:
Deferred Period
This is how long you wait before payments start (e.g. 4, 8, or 13 weeks). A longer deferred period usually means lower premiums.
Benefit Amount
Typically covers 50% to 70% of your income, paid monthly and usually tax-free.
Benefit Term
You can choose how long payments last:
- Until you return to work
- For a fixed period (e.g. 2 or 5 years)
- Or right up to retirement
Own Occupation Cover
One of the most important features — this means you’ll receive payments if you can’t do your specific job, even if you could work in another role.
Who Should Consider Income Protection?
Income protection is particularly important for:
Employees
If your employer offers limited sick pay, this fills the gap.
Self-Employed Individuals
No work often means no income — making this essential protection.
Homeowners
Helps ensure mortgage payments are maintained.
Families
Protects your household’s financial stability if you’re unable to earn.
Key Benefits at a Glance
- Regular monthly income if you can’t work
- Helps maintain your lifestyle and financial commitments
- Flexible policies tailored to your needs
- Peace of mind for you and your family
Peace of Mind for Life’s Uncertainties
No one plans to be off work due to illness or injury — but it happens more often than people think.
Income protection insurance is a practical and affordable way to protect your most valuable asset: your ability to earn an income.
Get in touch today to arrange a protection review and ensure your financial plan protects what matters most.
Contact me at david.medland@octofp.com or call 01326 211854 to book a conversation.
These plans have no cash in value at any time and will cease at the end of the term. If premiums are not maintained, then cover will lapse.
Plans may not cover all the definitions of a critical illness. The definitions vary between product providers and will be described in the key features and policy document if you go ahead with the plan.
The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.
FP38036.