Income Protection: Your Salary, Protected
Your ability to earn pays for everything else, including your mortgage. Income protection replaces part of your income if illness or injury stops you working, so the bills keep getting paid while you focus on getting better.
A Monthly Income When You Cannot Work
Income protection pays a regular monthly benefit if you are unable to work because of illness or injury. Payments start after an agreed waiting period, known as the deferred period, and continue until you return to work, the policy term ends or you reach the end of the benefit period, whichever comes first.
You can usually cover a proportion of your gross earnings, typically between 50% and 70%, depending on the insurer. That is designed to replace a meaningful share of your take-home pay without creating an incentive not to return to work.
Unlike critical illness cover, income protection is not limited to a list of conditions. It can pay out for any illness or injury that meets the policy’s definition of being unable to work, including back problems and mental health conditions, which are among the most common reasons people take long periods off.
Most long-term policies allow you to claim more than once over the life of the policy, which matters if a condition returns or a new illness follows a full recovery.
The Choices That Shape Your Cover
Deferred period
Benefit period
Definition of incapacity
Level or increasing benefit
We explain the trade-offs between cost and quality of cover so you can decide with confidence.
No Sick Pay, No Safety Net
If you work for yourself, there is no employer sick pay when you are ill. Statutory benefits are modest, and your business may struggle without you. For many self-employed people, income protection is the single most important cover they can hold.
Insurers assess self-employed income differently from salaried income, usually looking at your net profit or, for company directors, a combination of salary, dividends and sometimes your share of retained profits. As the sister company of Futurewise Accountancy, we understand these figures and can help you set a benefit level you would genuinely be able to claim.
Company directors can sometimes arrange income protection through their business, often called executive income protection, where the company pays the premiums and receives the benefit to keep paying your salary. Whether that is more efficient than a personal policy depends on your tax position, so we will involve Futurewise Accountancy or your own accountant before you decide.
Futurewise Finance does not give tax advice; tax advice is provided separately by Futurewise Accountancy or your own accountant.
Keeping a Roof Over Your Head
If you have a mortgage, income protection makes sure the repayments are still covered if you are off work for months rather than weeks. Some people choose a policy designed specifically to cover their mortgage and essential bills, sometimes called mortgage payment protection, which tends to be simpler and shorter term.
We look at your mortgage, your existing sick pay, savings and any workplace benefits before suggesting a level of cover, so you are not paying twice for the same protection.
Premiums are linked to your occupation as well as your health, because some jobs carry a higher risk of injury or absence. Manual and skilled trades can cost more to cover than office-based roles, and some insurers are more comfortable with particular professions than others. We search the market so your occupation is assessed fairly. When your mortgage or income changes, we will review your policy with you.
Frequently Asked Questions
How long is the deferred period, and how do I choose?
It can range from a few weeks to a year. Most people match it to how long their sick pay or savings would last; a longer deferred period means a lower premium.
Can I get income protection if I am self-employed?
Yes. Insurers will usually ask for evidence of your earnings, such as your tax calculations or accounts. We can help you present them clearly.
Does income protection cover redundancy?
Standard income protection covers illness and injury, not redundancy. Some short-term policies offer unemployment cover as an option, with its own conditions.
Explore more of what we offer
Buildings and Contents Insurance
Life Insurance
Critical Illness Cover
Working With Us Remotely
Free initial consultation
A short call or video meeting to understand what you want to achieve and what your finances look like.
Online meetings
Talk to your adviser by video or phone at a time that suits you, including [EVENINGS / WEEKENDS, CONFIRM].
Secure document upload
Send payslips, bank statements and accounts through our encrypted portal the moment you have them.
Electronic ID verification
Confirm your identity online in minutes.
E-signatures
Sign your paperwork digitally, from your phone if you like.