What is the maximum amount of cover with income protection insurance?

I can see that some plans seem to base the amount of income protection cover on earnings, often as a percentage of income. What is the maximum level of cover I can take out?

Question asked by Karla Jeffries
Compare Top 10 UK
 Protection
Insurers
 
Takes approx. 60 seconds
Type of Policy
Income Required
per
month
Date of Birth
Loading your options...
Thank you for using our Quote Tool
If you need some help, just call us!
T: 02084327333
Our in-house Experts are here to provide FREE impartial advice!
Our Experts can answer all your questions
Our Experts can send you more appropriate options based on your personal circumstances

Very important if you are either Self-Employed or a Company Director.

Our online quote tool is good but our Experts are better

Oue Experts have access to far more insurers and can often find a better deal offline.

Saves you time, let our Experts do what they are best at

Answered by Andrew Jenkinson

Understanding how much of your income can be covered

The answer to this question really depends on what type of income protection policy you are referring to. With short-term plans (paying out for up to 12 months) the vast majority will allow you to cover a maximum of 65 per cent of gross (pre-tax) income. However, although uncommon, some short-term plans have started to allow up to 70 per cent of earnings to be covered.

For long-term protection plans (which can payout until retirement) it is still possible to cover up to 65 percent of gross earnings with a limited number of insurers. However, the maximum level of cover with a large number of insurers in this market is 50 percent of gross earnings, with a small number offering percentage limits in-between (mainly at 55 percent of gross income).

All insurers quote at 50% income protection…

Thus, in order to allow all income protection insurers to provide competing quotes the amount of cover should be set at a limit of 50 per cent of pre-tax earnings, although you can go higher if you really need the extra cover.

Given the income limit many insurers impose it is natural to start looking at the maximum amount of cover that can be taken out but it is often better to really think about how much cover you actually need.

For example, if your expenses are £1,500 per month do you really need to pay the extra premium for £2,000 worth of cover? In most cases it is better to think about how much income insurance cover you need in terms of monthly outgoings, rather than income.

maximum income protection
 
level of cover
 
This information does not constitute financial or other professional advice. You should consult your professional adviser or contact us directly on 02084327333 should you require financial advice. It is important to ensure any insurance policy you take out is suitable for your needs.
Compare Top 10 UK Insurers
  Takes approx. 60 seconds
 - 
Need help? 
Call us on 

Frequently Asked Income Protection Insurance Questions

 
I am currently looking for a good income insurance policy and would like some suggestions for the best...
 
What is a typical deferred period for income protection insurance? Is there anything I should consider...
 
After recently been off work due to a minor operation and my company only paying sick leave for a small...
 
I’m looking for some kind of sick pay cover but can’t find very much information about it,...
Need Help? Live chat now and get an instant answer from our Experts...

Neil
Pensions

Victoria
Insurance
Our Latest Reviews
Jayant Rampuria
06/10/2018

Oliver did an excellent job in making the right recommendations. He's been very patient in dealing with my request and helping me choose the right product. Well done and thanks very much!

James Mclauchlan
05/10/2018

Josh did a great job. Did all the legwork for me in getting the best quote and even handed it over to someone else whilst he was away, then finished the whole thing once he was back – impressed!

Raviteja Sajja
02/10/2018

Josh was very good at communicating about different options for Life insurance, advising us on right choice and benefits. I would strongly recommend Drewberry. Thank you Josh.

We are rated 4.9/5 based on 1742 independent client reviews.
To read more of our independent client reviews click here →
REVIEWS
EXCELLENT
4.92 / 5 Average
1831 Reviews
A Lovell
Overall Rating
Extremely helpful and able to understand the various issues and constraint
D at Inforcehub
Overall Rating
Very knowledgeable and easy to deal with.
A Kanwal
Overall Rating
Bronja Whitlock was absolutely brilliant, as my mind isn’t in the right place at the moment due to the loss of my partner and I forgot who my insurers were or if I was covered. I therefore contacted her from an old email that I had from a few years just explaining my situation. I wasn’t expecting a response to be honest, but Bronja replied back the same day. She didn’t just reply with the most empathising response, but she also contacted the insurance company and told them of my situation and ordered my claim pack on my behalf, which I can’t appreciate enough. Bronja Whitlock you are an asset to your company. Thank you.
R Sajja
Overall Rating
Josh was very good at communicating about different options for Life insurance, advising us on right choice and benefits. I would strongly recommend Drewberry. Thank you Josh.
S G
Overall Rating
Rauri has been very professional and has responded promptly to any queries. Very friendly nature too