Income protection insurance

Worried about loss of earnings? Compare income protection insurance[1]

What is income protection insurance?

Income protection insurance will provide you with financial support if you find yourself unable to work, due to accident or illness, or if you're made redundant. You can get short-term or long-term policies, depending on your needs.

Do I need it?

You might have savings to fall back on, an adequate company redundancy package, or company sick pay that’ll cover illness in some circumstances.

But unemployment protection will help you to maintain your lifestyle and pay the bills if you can’t rely on these, either in the short or long term.

Bear in mind though that it’ll only cover a percentage of your income that you specify when you take out the policy, up to 70% of your salary.

Short-term or long-term income protection?

Long-term unemployment protection typically covers you for illness or injury. It pays out until you can work again, or until you retire, die or the policy ends.

Short-term income protection can also cover involuntary redundancy, but will only pay out for a set period of time, such as 12 months.

income protection

Insurers paid out over £604m for income protection claims in 2017

Get protected

insurers paid out £604,748,000 in income protection claims according to the Association of British Insurers (ABI) in April 2018

Alternatives to income protection

  • Payment protection insurance

    For private use, like visiting friends and family and doing the shopping, but not commuting.

    Payment protection insurance
  • Mortgage payment protection

    This can cover your monthly mortgage payments if you can’t.

    Mortgage payment protection
  • Loan protection

    You can get this type of income protection to pay your monthly loan repayments.

    Loan protection
  • Accident, sickness and unemployment insurance

    Protection for times when you can’t work because you’re too ill or injured, or you’re made redundant.

    ASU cover

Could your savings cover you for long if you were out of work?

Compare income protection

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