What’s the Difference Between Health Insurance and Income Protection?

I want some kind of health cover in case I am ill. I’ve come across Health Insurance, Income Protection and Permanent Health Insurance – what is the difference?

Question asked by Jackie Lam
10/04/2019

This is a very common question. Firstly Income Protection (IP) and Permanent Health Insurance (PHI) are exactly the same plan; Income Protection is just the new name for PHI.

However, Income Protection and Health Insurance (sometimes known as Private Medical Insurance) are very different plans with completely different purposes.

Income Protection Insurance

Income Protection is designed to pay a monthly benefit if you are unable to work due to illness or injury, which can be used to keep up to date with your rent / mortgage and other monthly costs.

Private Health Insurance

On the other hand, Medical Insurance is designed to pay for healthcare treatment in private hospitals and these days most insurers will settle the medical bill directly with the hospital or consultant.

Please see our Private Health Insurance guide for more information.

Income Protection or Health Insurance?

Firstly, these two policies are complementary rather than substitutes. When taken out together it means that you would receive prompt and quality healthcare from the Medical Insurance policy as well as an income whilst receiving treatment and making a recovery from the Income Protection policy.

However, given the very low level of state incapacity benefit, the first port of call is usually Income Protection so at least all your essential bills are paid for each month. After all, we’re fortunate in the UK to have the NHS which provides healthcare free at the point of use and so there’s generally less need for Private Medical Insurance than for Income Protection.

Compare Top 10 UK Insurers

Takes approx. 60 seconds
  • £
Verified by Norton Symantec icon
 Or Call Us

Frequently Asked Questions

Contact Us

Head Office & Pensions and Investments
Senator House
85 Queen Victoria Street
London
EC4V 4AB
Personal Insurance & Accounts Payable
Telecom House
125-135 Preston Road
Brighton
BN1 6AF
Drewberry London Office MapDrewberry Brighton Office Map

If you are unhappy with our service, we have a complaints procedure, details of which are available upon request. If you are unhappy with how your complaint has been dealt with, you may be able to refer your complaint to the Financial Ombudsman Service (FOS). The FOS website is www.financial-ombudsman.org.uk.

Drewberry Ltd is registered in England and Wales. Companies House No. 06675912

Drewberry Ltd registered office: Telecom House, Preston Road, Brighton, England, BN1 6AF. Telephone 0208 432 7333

Drewberry Ltd (Financial Conduct Authority No. 505473) is an Appointed Representative of Quilter Wealth Limited and Quilter Mortgage Planning

Limited, which are authorised and regulated by the Financial Conduct Authority.

Cookies

Drewberry™ uses cookies to offer you the best experience online. By continuing to use our website you agree to the use of cookies including for ad personalization.

If you would like to know more about cookies and how to manage them please view our privacy & cookie policy.

Deny
Approve