Insurance can be easier to understand when you know what each policy is designed to do—and what it might not cover. This guide explains key points to consider before speaking to a qualified professional.
What is income protection?
Income protection insurance is designed to provide regular payments when illness or injury prevents you from working, subject to the policy’s definition of incapacity and claim conditions. It is not the same as redundancy insurance.
How much income can be insured?
Insurers usually cap the benefit at a proportion of eligible earnings and may account for other payments or benefits. The available amount depends on occupation, income evidence and policy rules.
Understanding the deferred period
The deferred period is how long you must be unable to work before benefits start. Common choices range from weeks to several months. A longer period may lower premiums but requires a larger financial buffer.
Short-term versus long-term cover
Some plans pay for a limited claim period, such as one or two years. Others can potentially pay until a selected retirement age, subject to ongoing eligibility. Compare benefit periods and claim definitions.
Employed and self-employed considerations
Employees should check employer sick pay and workplace benefits. Self-employed applicants should consider how income is assessed and documented, particularly where profits fluctuate.
Key policy terms
Check the definition of incapacity, exclusions, escalation options, guaranteed or reviewable premiums, and any restrictions linked to employment status or changing occupation.
Frequently asked questions
Does income protection cover redundancy?
Standard income protection for incapacity generally does not cover redundancy.
Can self-employed people apply?
Yes, potentially, but insurers assess earnings and occupation and may require financial evidence.
Do I need income protection if I receive sick pay?
It depends on how long sick pay lasts and whether it would meet your financial commitments.
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Start an enquiry →Reviewed for general clarity: October 2026. Product terms and regulations may change. Check current policy documents and obtain appropriate advice before making decisions.