Income Protection

Pays you a monthly income if you’re too ill to work.

Why is it a good idea?

Why is it a good idea?

If you’re too ill to work, THE BILLS DON’T STOP

An illness doesn’t need to be life-threatening to stop you from working. And these days you don’t need to be unable to work for very long before debts build up, and you start to struggle financially.

That’s the beauty of Income Protection. It pays you an agreed monthly income if you find yourself unable to do your job due to illness or injury, so you can keep paying your bills until you’re well enough to return to work.

How does it work?

How does it work?

If you’re too ill to do your job, we pay you a monthly income

Unlike Critical Illness Protection, where you’re only covered for a defined list of critical illnesses, Income Protection covers any illness or injury that prevents you doing your own specified job.

The policy will pay you an agreed monthly income until you’re well enough to return to work or you reach the end of your chosen payment period. What’s more, once you recover, the policy stays in place for the length of your policy term, so if in the future another illness or injury prevents you from working, you can make another claim.

What type of cover do you need?

What type of cover do you need?

There’s a choice of 2:
Level Cover

With Level Cover, you choose the monthly amount of cover you want and the length of time you want to be covered. The monthly cover amount and monthly premium are fixed for the term of the policy.

Increasing Cover

They say what goes up must come down. But what about the cost of living? That generally only ever goes in one direction. So, to keep up with rising prices, the amount of monthly cover you get with Increasing Cover rises in line with inflation. This also means your premiums will rise each year.

What decisions do you need to make?

What decisions do you need to make?

You decide how much income you receive and when your payments start
Cover amount

When you take out Income Protection, the first thing you need to decide is how much cover you need. The maximum amount of cover you can choose depends on your annual earnings.

The maximum cover you can take out is:
  • 65% of your annual earnings up to £60,000.
  • 50% of annual earnings over £60,000 and up to £100,000.
  • 45% of any annual earnings over £100,000.

All payments are tax free.



Deferred period

You then need to choose a deferred period. This is the length of time you’re prepared to wait before being off sick due to illness or injury and your first monthly payment.

The longer you’re able to wait, the cheaper the premium will be. So it’s important to check your employment contract for sick pay entitlement before selecting your deferred period.

You can choose from the following deferred periods: 4 weeks, 8 weeks, 13 weeks, 26 weeks or 52 weeks.

Policy term

You also need to decide how long you want the policy to be in place. Most people choose the age they’re planning to retire. The maximum age you can take cover out until is 70 – or lower for some jobs.

Payment period

You have the choice of a 2-year payment period and a full-term payment period. This determines the length of time your policy will continue making monthly payments if you remain too ill to work.

With a 2-year payment period your policy will pay out until you’re able to return to work or for a maximum of 24 months.

With a full-term payment period your policy will pay out until you’re able to return to work or until the end of your policy term.


Income Protection is just one of the ways we can help protect you and your family from financial uncertainty. For more details, view our policy terms and conditions and key facts document.

To find out exactly what suits your needs best, speak to a Financial Adviser.


Phil Deacon
Head of Claims