Question 1

How is income protection different from critical illness cover?

Accepted Answer

Critical illness cover pays a single tax-free lump sum on diagnosis of a specific condition listed in the policy. Income protection pays a regular monthly income if you cannot work due to illness or injury, regardless of the specific diagnosis. They serve different purposes and many people benefit from having both.

Question 2

How much will it pay?

Accepted Answer

Most insurers will cover up to around 60 to 70 percent of your gross earnings, less any continuing income such as state benefits or sick pay. The exact figure depends on the insurer and your circumstances. The benefit is typically paid tax-free.

Question 3

What is a waiting (deferred) period?

Accepted Answer

This is the time between being unable to work and the policy starting to pay. Common options are 4, 8, 13, 26 or 52 weeks. A longer waiting period reduces the premium but means you need other resources, such as employer sick pay or savings, to bridge the gap.

Question 4

Will my employer's sick pay be enough?

Accepted Answer

Statutory sick pay is currently a low weekly figure paid for up to 28 weeks. Many employers offer more, but contractual sick pay typically lasts months, not years. Income protection is designed to take over once your other income runs out and continue for as long as you cannot work, up to the end of the policy.

Question 5

Will it pay out for any illness or injury?

Accepted Answer

Policies use a definition of incapacity that determines when a claim will pay. Stronger 'own occupation' definitions pay if you cannot do your specific job, while weaker definitions only pay if you cannot do any job at all. We always recommend own occupation cover where it is available, as it offers the strongest protection.

Question 6

What happens to my premiums if I claim?

Accepted Answer

Most modern policies waive premiums while a valid claim is being paid. Once you are back at work, premiums resume. Cover continues until the agreed end date, and you can usually claim again for a separate condition in future, subject to the policy terms.

Question 7

Can the self-employed get income protection?

Accepted Answer

Yes, and it is often even more important when there is no employer sick pay safety net. Insurers typically use net profit (sole traders) or salary plus dividends (limited company directors) when calculating cover. We help you structure cover that reflects how you actually earn.

Income protection, for when work has to wait.

Income protection questions

Could you afford to stop working tomorrow?

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