What’s the Maximum Amount of Cover With Income Protection?

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 Whole of Market 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

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%t of gross (pre-tax) income. However, although uncommon, some short-term plans have started to allow up to 70% of earnings to be covered.

For long-term protection plans (which can pay out until retirement) it is still possible to cover up to 65% 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 55% of gross earnings.

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 thinking about taking out Income Insurance but want to make sure that the insurer won’t just...
 
If I take out Income Protection now and need to make a claim will I still be eligible for any benefits...
 
I was looking on the internet for permanent health insurance and keep coming across income protection...
 
What’s the average claims length for an Income Protection policy? Do people usually claim for a...
Need Help? Live chat now and get an instant answer from our Experts...

Neil
Pensions

Victoria
Insurance
Our Latest Reviews
Martin Johnson
24/04/2019

A simple policy well explained good impartial advice and knowledge done with a smile! Many thanks.

Julia Bickley
19/04/2019

I found the service very friendly, professional and those I spoke to were clearly knowledgeable and explained things in an appropriate way. Great communication, and very personable staff. I would use again without a doubt.

Valerie Graham
17/04/2019

Excellent – very helpful and knowledgable. No sell, just education and assistance. Would highly recommend!

We are rated 4.9/5 based on 2215 independent client reviews.
To read more of our independent client reviews click here →
REVIEWS
EXCELLENT
4.92 / 5 Average
2215 Reviews
S Perera
Overall Rating
Sam was very helpful in finding and setting up my new income Protection policy. He was very knowledgeable about the different policies and there was good communication at all times. I would not hesitate to recommend Drewberry
N Sargent
Overall Rating
Miguel did a great job setting up our company's group life policy - thank you!
S jane
Overall Rating
Really helpful, thorough and knowledgeable. Great advice and guidance.
R Kannan
Overall Rating
Drewberry handled my requirements professionally and promptly.
S Preece UK Mats Ltd
Overall Rating
Great service and help. Would highly recommend