Income when you cannot work

Expert Insurance Advice

Accident and Sickness Cover

Accident, Sickness and Unemployment Cover

Long-Term Income Protection


Income Protection Cover

Do you want peace of mind knowing that if you fall ill you can pay your bills? An Income Protection Insurance can deliver just that, with options to cover a variety of needs.


What is Income protection insurance?

Income protection is insurance that provides monthly income for a specified period usually in case of illness or injury. Income protection offers security in case of an illness that might not be critical but would stop you from going to work for a prolonged time. State benefits are available for people out of work and provide £96.35 per week, but is this enough?

What are the different types of Income protection insurance policies?

There are several types of policies available.

  • Accident and Sickness Cover is a short term income protection. It is a budget option, that pays out when you are unable to work in case of illness or injury for a short period, usually 12 to 24 months.
  • Accident, Sickness and Unemployment cover (ASU) is a cover that pays out a regular income in case of accident, sickness and unemployment. The unemployment element usually is deferred, depending on the policy.
  • Long term income protection is a comprehensive option that covers income payments in case of illness, injury or disability. In case you are unable to work for a long period, income protection can provide regular payments until you retire or get better. The policy usually provides 60% of your current salary.
Critical illness insurance

Benefits of Income Protection policy

  • Reassuring – depending on the insurance policy, you can expect between 50% and 70% of your monthly net salary to be paid tax-free for as long as your policy is in place.
  • Additional benefits – some policies include fracture or hospitalisation cover.
  • Back to work payment – with selected policies, clients with deferred payment can claim in their first and second months back at work to help with the financial impact of returning
  • Minimum benefit amount – most policied will pay a minimum benefit amount, typically £1,500
  • Additional payment on death – some policies will have the additional benefit of lump sum payment in case of the death of the policyholder. This is separate from the life policy and is limited and described in the policy.

Do I need income protection insurance?

If you suddenly become ill or you injure yourself, your employer will start paying your sick pay. How much of your salary they pay will depend on your employment contract. Some companies offer up to 12 months full pay, some will start paying Statutory Sick Pay as soon as they can. The Statutory Sick Pay is £96.35 per week, can be paid after only four days off sick and can last up to 28 weeks.

There might be other benefits available for you to claim, so please check the Government website for details.

“It will never happen to me!”

Cancer, mental illness or coronavirus will not discriminate. The research in the UK states that 1 in 2 people will develop some sort of cancer in their lifetime ( In the UK, the 4 most common types of cancer are:

  • Breast cancer
  • Lung cancer
  • Prostate cancer
  • Bowel cancer

Most of us has been affected by cancer, through family or friends, and know how devastating this illness can be. It can happen to the healthiest people with no family history, at any time. While many people nowadays survive cancer, they will still be unable to work for a prolonged time. What would happen to your finances if you fall ill and are not able to work? How long will your savings last?

Is it a time to talk about an income protection policy that you can afford and would suit your needs in case of the unthinkable?

Statutory Sick Pay, from 1-28 weeks



Employment and Support Allowance (assessment phase) from 1-13 weeks for those aged 25 and over

up to £74.70


Employment and Support Allowance (main phase – work-related activity group) from week 14

up to £74.70


Employment and Support Allowance (main phase – support group) from week 14

up to £114.10

Ask yourself:

What if you don’t have a critical illness, but suffer from long-term sickness or a disability that prevents you from working?

How long would your finances last if this happened to you?

How long would your employer continue to pay you?

How quickly would you have to fall back on state benefits? And would they be enough?

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