Income protection insurance
A monthly income if illness or injury stops you working, so your mortgage and bills keep getting paid while you recover. We look at what you already have, find the gap, and compare cover to fill it.
What income protection is
Income protection pays you a regular monthly amount if you cannot work because of illness or injury. Payments start after a waiting period you choose, and carry on until you go back to work, retire, the policy ends or the benefit period runs out, whichever comes first.
For most homeowners the mortgage is the biggest monthly bill, which is why people often search for income protection for a mortgage. The policy does not pay your lender directly. It replaces part of your income, and you use it for the mortgage and everything else that still has to be paid.
It is worth a closer look if
- Your employer pays only Statutory Sick Pay, or sick pay that stops after a few months
- You are self-employed, a contractor or on a zero-hour contract
- Your household relies on your income to cover the mortgage
- You have little in savings to fall back on
- You have taken on a new or larger mortgage
£123.25
most Statutory Sick Pay pays a week, 2026/27 (gov.uk)
28 weeks
the longest Statutory Sick Pay lasts (gov.uk)
97.9%
of individual protection claims paid in 2025, all policy types (ABI)
£0
fee for our protection review
How an income protection policy works
Five choices shape what a policy does and what it costs. They are worth understanding before you compare prices, because two quotes that look alike can behave very differently at claim time.
| Feature | What it means | What to weigh up |
|---|---|---|
| Deferred period | How long you must be off work before payments start. Insurers commonly offer set periods such as 4, 8, 13, 26 or 52 weeks. | Match it to your sick pay and savings. A longer wait usually means a lower premium. |
| Benefit amount | The monthly sum paid. Insurers cap it at a share of your gross earnings; one large UK insurer, for example, publishes a limit of 60% of gross income up to £60,000 a year. | Enough to cover the mortgage and essential bills, not necessarily your full take-home pay. |
| Benefit period | How long each claim can pay: short-term (often one or two years) or long-term, up to your chosen retirement age. | Long-term cover costs more but protects against illnesses that last years. |
| Definition of incapacity | Own occupation pays if you cannot do your own job. Suited or any occupation only pays if you cannot do a job suited to your experience, or any job at all. | Own occupation is the broadest. Some jobs can only get a narrower definition. |
| Premiums | Guaranteed premiums are fixed for the life of the policy. Reviewable premiums can be changed by the insurer. | Reviewable cover can start cheaper but may rise later. |
Income protection vs mortgage payment protection vs critical illness cover
These three are often confused. They pay out for different things, in different ways.
| Income protection | Mortgage payment protection (MPPI / ASU) | Critical illness cover | |
|---|---|---|---|
| Pays out for | Illness or injury that stops you working | Accident and sickness, and unemployment if included | Diagnosis of a condition listed in the policy |
| How it pays | Monthly income | Monthly amount, usually linked to your mortgage payment | One lump sum |
| How long | Until you return to work or the benefit period or policy ends | Short-term, typically 12 or 24 months per claim | Once, on a valid claim |
Many households end up with a mix. Our life and critical illness insurance page covers the lump-sum side.
Short-term and more affordable income protection
If long-term cover feels out of reach, there are sensible ways to bring the cost down without leaving yourself with nothing:
- A longer deferred period that starts when your employer's sick pay stops
- A shorter benefit period, such as one or two years per claim. This is what people usually mean by temporary or budget income protection.
- A lower benefit amount that covers the mortgage and essentials only
The trade-off with short-term cover is that it stops paying after the set period, even if you are still unwell. Premiums depend on your age, health, job and the choices above, so we do not quote a typical figure here.
Mortgage protection insurance for unemployment
Income protection does not cover redundancy or job loss. Cover for unemployment is usually only available through mortgage payment protection (MPPI) or accident, sickness and unemployment (ASU) policies. These tend to pay for a limited time, and often exclude the first few months of a policy, self-employment and job losses you knew were coming. Fewer insurers offer them than once did.
What the state and your employer would pay
Statutory Sick Pay is £123.25 a week or 80% of your normal weekly earnings, whichever is lower, for up to 28 weeks. That is the 2026/27 rate on gov.uk. The self-employed do not get it.
Support for Mortgage Interest is a loan, not a grant. If you get a qualifying benefit (Universal Credit, income-related Employment and Support Allowance or Pension Credit), it can help with the interest on up to £200,000 of your mortgage. Payments on Universal Credit start only after three months in a row on the benefit, go straight to your lender, and must be repaid with interest when you sell or transfer your home. It does not cover capital repayments.
Employer sick pay and group income protection can be generous, so check your contract or staff handbook before you buy anything. Some employers provide group income protection, which may already cover part of the gap. It usually ends if you leave the job. NHS staff, for example, have sick pay that rises with length of service; our guide for NHS staff explains it.
If you are self-employed or a contractor
With no employer sick pay and no Statutory Sick Pay, income protection often matters most here. Insurers base the benefit on your earnings, usually from your accounts or tax returns, so it helps to know how your income is evidenced. The same question comes up with mortgages; see our guide to contractor, CIS, agency and zero-hour mortgages.
Do claims get paid?
The Association of British Insurers reported in June 2026 that 97.9% of individual protection claims were paid in 2025, across all policy types. Individual income protection claims paid out a record £209 million. Whether a particular claim is paid depends on the policy terms and on your answers to the health and lifestyle questions when you applied. Full and honest disclosure is the single most important thing you can do.
Sources
- GOV.UK, Statutory Sick Pay: what you'll get (checked September 2026)
- GOV.UK, Support for Mortgage Interest: eligibility and what you'll get (checked September 2026)
- Association of British Insurers, protection claims for 2025, published 29 June 2026
- Published insurer policy limits for income protection (checked September 2026)
How we help
We look at what you have
Employer sick pay, group cover, savings and any policies you already hold. Sometimes the answer is that you need less than you thought.
We work out the gap
What your mortgage and essential bills cost each month, and how long you could manage without extra cover.
We compare policies
Deferred periods, benefit periods, definitions and premiums side by side, with the trade-offs explained in plain English.
You decide
No fee for the review and no pressure to buy. If your existing cover is right, we will say so.
Can I get a mortgage while on income protection?
It can be harder, but it is not always ruled out. Lenders assess the income you have now. Many will not accept income protection benefit as your main income, because it can stop when you recover or the benefit period ends. Some may consider it, especially alongside other income or a partner's salary, and will want evidence of how long it is expected to continue. An adviser can check which lenders might look at your situation before you apply.
What is bill protection insurance?
It is a general name for short-term policies that pay a monthly amount towards your household bills if you cannot work because of sickness, an accident or sometimes unemployment. They usually pay for a limited period, often up to a year or two. They work much like short-term income protection or MPPI, so check exactly what is covered, the waiting period and the exclusions.
Do I need it if my employer pays sick pay?
Maybe not straight away. Find out how long full and half pay last and whether your employer has group income protection. If sick pay runs out after a few months, a policy with a deferred period that starts then can fill the gap at a lower cost than one that pays from the first weeks.
How is it different from life insurance?
Income protection pays you while you are alive but unable to work. Life insurance pays out to the people you leave behind. They solve different problems, and many households need both. It is one reason we suggest reviewing your insurance alongside your mortgage.
Where are you based?
Our advisers are based in Birmingham, on Cherry Street, and we arrange income protection cover for clients across the UK by phone and video as well as in person.
Find out where your gap is
A short conversation about your sick pay, your mortgage and any cover you already have. No fee and no obligation.