Income Protection
If illness or injury stops you working, income protection pays you a regular tax-free monthly income until you recover, retire or the policy ends.
- Whole-of-market cover
- Free, no-obligation advice
- Real claims support
Your home, your bills and your family all depend on one thing: your ability to earn. Income protection replaces a large part of that income if illness or injury stops you working, paying a regular monthly amount for as long as you need it. As independent, FCA-regulated advisers we compare the whole market, explain the choices in plain English and build the cover around your job, your sick pay and your budget.
What income protection gives you
A monthly tax-free income
You receive a regular monthly payment, typically 50 to 65 percent of your gross income, paid free of income tax for as long as you cannot work.
Covers illness and injury
Cover applies to a wide range of conditions that stop you working, whether you fall seriously ill or are injured, at work or at home.
Mental health and back pain
Good policies pay for the most common reasons people are signed off: stress, anxiety, depression and musculoskeletal problems such as back pain, where the criteria are met.
An own-occupation definition
The strongest cover pays out if you cannot do your own job. We aim to arrange an own-occupation definition, so you are never expected to take any work just to lose your benefit.
Pays across multiple claims
This is not a single-payout product. If you recover, return to work and are later signed off again, you can usually claim more than once over the life of the policy.
You choose the waiting period
You set the deferred period before payments start, commonly 4, 13, 26 or 52 weeks. A longer wait means a lower premium, so we match it to your sick pay or savings.
How a claim works
You are signed off unable to work
You become too ill or injured to do your job and stop earning, with medical evidence to support that you cannot work.
You serve your chosen waiting period
Your deferred period runs first, for example 4, 13, 26 or 52 weeks. This is the gap you chose at the start before any payments begin.
Your monthly income is paid
Once the waiting period ends, the insurer pays your agreed monthly amount straight to you, free of income tax, to help cover your mortgage, bills and living costs.
It continues until you are back on your feet
Payments carry on until you return to work, reach retirement, the policy ends or, on a short-term plan, the capped period runs out, whichever comes first.
Why income protection matters
Most cover protects you against a single event. Income protection protects your biggest asset of all: your ability to earn. It is the flagship cover for the self-employed, who have no employer sick pay to fall back on, and it fills the gap left by minimal Statutory Sick Pay, which runs out long before most long-term illnesses do.
Statutory Sick Pay leaves a big gap
If you are employed, Statutory Sick Pay is only around £123 a week and lasts for up to 28 weeks at most. If you are self-employed you get even less, often nothing at all. For most households that is nowhere near enough to cover a mortgage and bills, which is exactly the gap income protection is built to fill.
Free, no-obligation advice
Our protection advice costs you nothing, because we are paid by the insurer, not by you. We compare the whole market, set a sensible benefit level around your budget and explain every choice in plain English, with no pressure to take anything out.
The key choices when setting up your cover
A few decisions shape both your premium and how the policy pays out. We talk each one through so the cover fits your job, your sick pay and what you can comfortably afford.
| Choice | Options | What it means |
|---|---|---|
| Waiting (deferred) period | 4, 13, 26 or 52 weeks | How long you wait before payments start. A longer wait costs less, so we match it to your sick pay or savings. |
| Definition of incapacity | Own occupation or any occupation | Own occupation pays if you cannot do your own job. Any occupation is cheaper but stricter, as it expects you to take other work. |
| Payment term | Full-term or short-term (budget) | Full-term can pay all the way to retirement. Short-term caps each claim at 1, 2 or 5 years and costs less. |
Protect the income everything else depends on
Get free, no-obligation advice from an FCA-regulated adviser. We will compare the whole market and set the cover up around your job, your sick pay and your budget.
Free first consultation, no obligation.
Income protection questions
How much income will it pay?
Income protection usually replaces around 50 to 65 percent of your gross income, paid as a tax-free monthly amount. Insurers cap the percentage so you always have an incentive to return to work, but because the payments are tax-free the cover is designed to land close to your usual take-home pay. We work out a sensible level around your bills and budget.
What is a deferred period?
The deferred or waiting period is the time between you being unable to work and your payments starting. You choose it at the outset, commonly 4, 13, 26 or 52 weeks. A longer deferred period means a lower premium, so we line it up with any employer sick pay or savings you can rely on first.
What is the difference between own occupation and any occupation?
Own occupation means the policy pays out if you cannot do your own specific job. Any occupation (sometimes called suited occupation) is stricter and may not pay if you could do some other kind of work, even if it is very different from your normal role. Own occupation is the stronger definition and the one we aim to arrange for you.
Does it cover mental health and back problems?
Good income protection policies pay for the most common reasons people are signed off work, including stress, anxiety and depression as well as musculoskeletal problems such as back pain, provided you meet the policy definition of incapacity and have the medical evidence. We confirm exactly how a particular insurer treats these before you take cover out.
How is income protection different from critical illness cover?
Critical illness cover pays a single tax-free lump sum if you are diagnosed with a specified serious illness, and the policy then usually ends. Income protection instead pays a regular monthly income for as long as you remain unable to work, across as many separate claims as you need. Many people use the two together: the lump sum for the big costs and the monthly income to keep the household running.
Can I claim more than once?
Yes. Income protection is not a single-payout product. If you recover, go back to work and are later signed off again by a new illness or injury, you can normally make a further claim, subject to serving the deferred period again. That is one of the main strengths of this type of cover.
Is the payout taxed?
No. The monthly income from a personal income protection policy is paid free of income tax, so the figure you agree is the figure you receive. This is why the percentage of your salary that insurers will cover is below 100 percent: tax-free cover at, say, 60 percent can be close to your normal take-home pay.
I am self-employed, can I get it?
Yes, and it is often the single most valuable cover for the self-employed. You have no employer sick pay to fall back on, so if you cannot work your income can stop completely. Income protection replaces a large part of those earnings and keeps your mortgage and bills covered. We help you choose the right deferred period and benefit level for the way you are paid.
Let us talk through your options
Your first consultation is free and there is no obligation.
Albion Financial Advice provides regulated mortgage and insurance advice where applicable. Your home may be repossessed if you do not keep up repayments on your mortgage. Wills, estate planning and some forms of business and buy-to-let insurance are not regulated by the Financial Conduct Authority. Information on this page is general only and does not constitute financial advice.