What Is The UK’s Best Income Protection Insurance In 2024?

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04/02/2024
9 mins

When considering Income Protection Insurance, it makes sense to look for the best possible policy your money can buy. But this can be hard to pinpoint since the best policy for you depends on your unique circumstances and requirements.

This expert guide covers all the variables you’ll need to think about when comparing Income Protection providers and aims to help you find the right policy for your needs.

What Is Income Protection Insurance?

Income Protection Insurance is a policy designed to pay out a percentage of your monthly income if any medical issue prevents you from working. It can protect your income for the rest of your working life, so even if you never worked again due to poor health, you’ll get a sum paid to you each month.

It enables you to keep paying for all your essential outgoings, so you can rest assured that your mortgage repayments or rent, household bills, and groceries are covered.

Depending on several factors (which we’ll go over shortly), you can typically cover up to 70% of your gross annual salary.

The Factors To Consider When Buying Income Protection

There are several factors to think about when looking for the Best Income Protection policy for you, including:

  • What you do for work
  • Your employment status
  • Current health and lifestyle choices
  • Whether you get any sick pay
  • Any savings you have.

Every insurer you come across has its own terms and conditions, underwriting options, and preferred type of client. For example, let’s say you work in a risky occupation within the construction sector or you’re a regular smoker. These aspects may affect which Income Protection provider is best suited to you.

If you’ve already done some research, you can get an idea of how much a policy will cost through our online Income Protection quote tool.

EXPERT TIP 🤓
According to consumer group Which?, Income Protection is the one policy every working adult should consider.

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What Are The Best Features Of Income Protection?

It’s pretty much impossible for us to suggest an Income Protection provider without first knowing what you need from a policy. Every client who comes to us has different requirements, making your Income Protection policy unique to you and your circumstances.

If you’re seeking an insurance policy that protects your income against the risk of illness or injury, then the Best Income Protection policies often include:

Own Occupation Incapacity Definition

An Own Occupation definition of incapacity means that your policy will payout if you’re unable to carry out your specific job due to any illness or injury.

It’s worth noting here that if you were to buy a Payment Protection Plan, these mostly use the ‘suited occupation’ definition, making it hard for you to claim if you were unable to work in your current role.

Guaranteed Premiums

An Income Protection policy with guaranteed premiums is a great option, as it means your agreed upon premiums at the start of your policy will not change. We recommend this type of premium when setting up your policy.

Let’s say, your policy costs you £30 a month, this will stay this price for the length of your policy. This is particularly useful as it means your cover will never cost more or be at risk of being unaffordable for you.

Long-Term Cover Options

While you can buy Short-Term Income Protection, these policies often have a maximum claim length of 2 years. Yes, it’s budget friendly, but if you suffered an accident or developed an illness requiring more than 2 years out of work, your policy won’t stretch that far.

But a long-term policy will continue to pay you a monthly income right up until the end of the policy term if you’re unable to work. Here, your policy can protect you right up until you reach retirement age.

We recommend Long-Term Income Protection if you can afford the premiums over time. Given that UK insurer Liverpool Victoria’s average payout length in 2022 was close to 7 years, it makes sense to buy a policy that won’t limit how long you could claim for.

Many of the top UK Income Protection providers, such as Aviva, Liverpool Victoria, and The Exeter, offer long-term policies.

Samantha Haffenden-Angear, Independent Protection Expert at Drewberry

If you’re on a tight budget, short-term cover is better than no cover at all.

But the best Income Protection in terms of comprehensive cover are those that protect you for your entire working life right up until retirement.

Samantha Haffenden-Angear
Independent Protection Expert

The Level Of Cover

Most Income Protection providers in the UK cover between 50-70% of an individual’s income. Each insurer is different and one may offer a higher percentage of cover than another. For example, Zurich will cover up to 80%, while Liverpool Victoria will cover up to 60%.

What’s best for you here is the Income Protection policy that covers a satisfactory amount of your monthly income to ensure you can pay for living costs while out of work.

A Suitable Deferred Period

You’ll choose a deferred period for your Income Protection Insurance. This is the period in which you could survive on savings or additional means of income before you’d need your policy benefit to start paying out.

Insurers typically offer deferred periods of 4, 8, 13, 26, or 52 weeks. The longer this is, the lower your premiums. However, as this is the amount of time you’ll need to wait before your benefit begins, it must be an affordable decision.

If you could live off your savings for 4 weeks before you need financial support, a 4 week deferred period is your best option. There’s no point in a 26 weeks (6 month) deferred period if you’d be financially struggling before the period ends.

EXPERT TIP 🤓
The best deferred period for you is the one that’s most affordable to you.

Which Income Protection Has The Best Terms & Conditions?

The best Income Protection policy for you is dependent on your needs and personal circumstances. To identify whether a policy is right for you, it’s vital to read through the terms and conditions. Most of us are guilty of skipping the T&Cs, but with an insurance policy it’s vital you do read through these.

The terms and conditions detail what is and what isn’t covered, and much more. Failing to read the policy documents could come back to bite you when you need to make a claim.

Which Income Protection Policy Has The Least Exclusions?

The best Income Protection cover often does not have any standard exclusions. Your insurer will payout for any medical condition that prevents you from working, irrespective of its cause.

No Standard Exclusions For Income Protection Insurance

Some Standard Exclusions For Income Protection Insurance

Some providers do have exclusions, such as:

  • Legal & General
    Incapacity resulting from drug, alcohol or solvent abuse
  • Aegon
    War or civil commotion.

It’s also important to note that if you travel overseas for business, or think you may reside outside of the UK at any point, some policies will have more restrictions.

If you need help to find the best Income Protection policy, please pop us a call on 02084327333 or email help@drewberry.co.uk.

Redundancy Insurance Exclusions

Most insurers have an initial unemployment exclusion period where you can’t make a claim within the first 120 or 180 days of taking out the policy. Most plans only cover forced redundancy (i.e. you cannot take voluntary redundancy or get asked to leave due to poor performance).

Which Income Protection Providers Have The Best Payout Rates?

It’s not unusual for people to choose an Income Protection Insurance provider based solely on the insurer’s payout rate. Some believe these statistics show which provider is the best overall. However, payout rates should be used as a guide. Many insurers publicly publish their payout rates every year, but these are to be used with a pinch of salt.

Payout statistics are never 100% accurate and you’ll find most providers publish very high rates. Many of which are over 90%. While this percentage can give you some confidence in the provider and the policy, it can be swayed if policyholders are untruthful on their application or try to claim for current/ongoing conditions.

Provider Pay Out Rates

Insurer

2020

2021

2022

Zurich

85%

99%

85%

Vitality

96.8%

N/A

96.5%

Shepherds Friendly

N/A

95%

96.2%

Cirencester Friendly

94%

93.6%

95.4%

Holloway Friendly

98%

94%

93.4%

British Friendly

87%

84%

90%

Liverpool Victoria

95%

93%

92%

The Exeter

91%

93%

92%

Aviva

87.5%

85.4%

94.3%

Legal & General

93%

81%

82.2%

Which Income Protection Providers Offer The Best Claims Process?

The most significant responsibility an Income Protection insurer has is paying claims. Over recent years, improvements have been made, making it easier for policyholders to claim. Insurers are also trying to speed up their processes for approving these.

A number of insurers accept claims over the telephone, putting those lengthy forms to bed. When you need to make a claim, you expect it to be an easy process. When looking for the Best Income Protection provider, make sure to find out the insurer’s process first.

If you plan to submit a claim, it’s best to let your insurer know as soon as possible. The sooner you get the process started, the faster they can approve your claim and begin paying the benefit you need.

Neil’s Cancer Claim With British Friendly

Neil is a client of Drewberry™ who bought Income Protection Insurance with British Friendly. He’d had his policy for just 4 years before falling ill.

After experiencing stomach pains, Neil went to his GP, who referred him for further tests. These tests discovered that he unfortunately had bowel cancer, and it was already at stage 2. Neil needed surgery to remove the cancer, but developed postoperative sepsis and had to spend several weeks in hospital recovering, completely unable to work.

British Friendly began paying him a proportion of his earnings after his deferral period, allowing him to keep up with all the important bills, such as his mortgage, when he was unwell. Take a look at Neil’s full story 👇

Which Income Protection Insurers Offer The Best Premiums?

This is not an easy question to answer, as your Income Protection premiums are based on your personal circumstances and your policy needs. The price you pay is likely to be different to your neighbour, for instance.

When you compare quotes from different insurers, your premiums are determined by a range of factors, including:

  • Your age
  • Smoker status
  • Your current health
  • Your occupation
  • The level and length of cover
  • Deferred period.

Another aspect to consider is how providers differ from one another. You’ll find that they have different attitudes towards risk which will impact the amount they charge.

As there’s so many factors at play for an insurer to calculate policy premiums, there’s no right or wrong answer to which provider is the most competitive. This is especially true if you have any medical conditions to disclose in your application.

The good news is that even if you’re on a budget, there are ways to adjust your policy to reflect what you can afford.

The ‘best’ price for you is unique, so we always recommend speaking to a financial adviser who can help you to compare quotes.

Danny Gill
Independent Protection Expert

You can compare quotes yourself using our Income Protection comparison tool, but not all insurers provide online quotes. Here’s where a member of our team can help you. As independent financial experts, we’re able to get quotes from all leading UK Income Protection providers, and we can help you find the best policy for the best price. Just pop us a call on 02084327333 or email help@drewberry.co.uk.

Example Costs Of Income Protection Insurance

Even though premiums vary from person to person, we’ve got some quotes to use as an example. You’ll be able to see how different factors influence the cost of Income Protection.

The Provider

Every Income Protection provider will charge a different premium, due to the variety of services and benefits available. The insurer’s appetite for risk plays a part too.

To give you an example of how costs vary depending on your provider, we’ve got some quotes. These assume you:

  • Are aged 35
  • Want a monthly benefit of £1,400
  • Work in a low-risk office-based role
  • Are healthy and don’t smoke
  • Want long-term cover with a cease age of 65
  • Would like an 8 week deferred period.
Different Providers
£28.91 £37.00 £42.18
Income Protection quotes accurate as of Dec 2023

Your Age

The older you are when you apply for a policy, the higher the cost of Income Protection. You’re at a higher risk of developing an illness or suffering an injury as you age, and the monthly premium reflects that.

Using the same factors as above, here are some example quotes for different ages.

Age 35 Age 45 Age 55
£28.91 £44.84 £62.06
Income Protection quotes accurate as of Dec 2023

Your Medical History

Although most Income Protection policies have no standard exclusions, it’s possible for an insurer to increase your premiums if you have a pre-existing medical condition. The insurer may even exclude it altogether.

Pre-existing conditions are normally excluded, as they require long-term treatment and medication. This would increase the costs for the insurer, so they either exclude it or hike premiums to cover the extra risk.

Your Smoker Status

A nicotine habit puts you at a higher risk of developing a health condition, such as heart disease, cancer, or a stroke. If you smoke, insurers may charge you more for your Income Protection policy to cover the higher risk.

Not all providers charge more for smokers, though. Here is a general idea of how the monthly costs differ between a smoker and a non-smoker, based on the same policy options above.

Smoker 🚬 Non-Smoker 🚭
£43.80 £34.51
Income Protection quotes accurate as of Dec 2023

The Deferred Period

You’ll select a deferred period when setting up your Income Protection policy. Insurers tend to offer periods of 4, 8, 13, 26, or 52 weeks. The longer your deferred period, the cheaper your premiums will be.

Below are some monthly cost examples of policies with different deferred periods. These are based on the previously used policy options above.

4 Weeks 8 Weeks 13 Weeks
£38.52 £34.92 £23.12
Income Protection quotes accurate as of Dec 2023

Compare 12 Best UK Income Protection Insurance Providers In 2024

As independent insurance brokers, we work with all the top UK insurers to help you find the best cover for the right price.

To help make a more informed decision, the table below offers a great summary of each major provider and its Income Protection plans.

AIG

Maximum Benefit

  • 60% of gross income up to £30,000; 55% between £30,000-£100,000; and 45% on gross income of £100,001+
  • Maximum benefit: £20,833 per month / £249,996 per year

Claim Duration

Either:

  • Full cover to term
    Pays out with no limit, right up until your chosen retirement age if you can never work again.
  • 24 months limited payment term
    Pays out for up to 24 months for each incapacity. If you return to work for 26 consecutive weeks, you can claim again for the same illness / injury.

Deferred Period

4 / 8 / 13 / 26 / 52 weeks

Premium Type

Guaranteed

Claims Paid

n.a.

Additional Benefits

Smart Health is AIG’s main additional benefits offering. It includes:

  • 24 / 7 digital GP service
  • Fitness and nutrition plans from qualified sports coaches / nutritionists
  • Mental health support / counselling
  • Online health check
  • Second medical opinion from Best Doctors.

The Drewberry Verdict

👍

Smart Health provides an excellent range of additional benefits, among the best in the market

👍

High monthly benefit available

🏆
  • Winner: Outstanding Insurer of the Year, 2020 LifeSearch Awards
  • Winner: Best Health & Wellness Offering, 2020 Cover Customer Care Awards
  • Winner: Best Added Value Provider, 2020 Cover Excellence Awards
  • 5-star Defaqto rating

AIG does not publish claims data for Income Protection

Maximum Benefit

  • 65% of gross earnings up to £60,000; 45% of gross earnings above £60,000
  • Maximum benefit: £20,000 per month / £240,000 per year.

Claims Duration

Either:

  • Full cover to term
    Pays out with no limit, right up until your chosen retirement age if you can never work again
  • 24 months limited payment term
    Pays out for up to 24 months for each incapacity. If you return to work for 6 consecutive months, you can claim again for the same illness / injury.

Deferred Period

4 / 8 / 13 / 26 / 52 / 104 weeks

Premium Type

Guaranteed or reviewable

Claims Paid

94.3% in 2022

Additional Benefits

Aviva DigiCare+

Free as standard, Aviva DigiCare+ is a health and wellbeing service offering:

  • 24 / 7 Bupa Anytime HealthLine, staffed by trained nurses to help manage minor health concerns
  • A Health MOT
  • Nutrition advice
  • Gym discounts
  • Up to six sessions of video / phone psychotherapy per year
  • Second medical opinion service on a recent diagnosis and your treatment options
  • Bereavement support if you lose a family member.

You can also opt to pay an extra £36 annually for three Digital GP appointments per year.

Other Free Benefits

  • Back to work benefit, paying a top up to your earnings if you can only return to work in a lesser role / on less hours after illness / injury
  • Hospitalisation benefit of £100 per night if you spend more than 6 consecutive nights in hospital during your deferral period, up to a maximum of 90 nights per policy term
  • Trauma benefit, paying the lower of £40,000 or six times your monthly benefit if you suffer one of six traumatic injuries

Optional Paid Benefits

  • Fracture cover, paying a lump sum of between £2,000 and £6,000 for a specified fracture depending on the type of fracture and the bone you break
  • Global treatment, offering you and your child(ren) access to Aviva’s Best Doctors service, a second medical opinion and overseas medical treatment if you need a medical procedure

The Drewberry Verdict

👍

Aviva DigiCare+ is a great suite of additional benefits available for free

👍

High monthly benefit available

👍

Further additional benefits available at cost, such as fracture cover for £4 a month

👍

Specialist cover available for doctors, surgeons and other NHS workers

👍

104 week deferral period available, the longest in the market

🏆
  • Winner: Best Individual Income Protection Provider, 2019 Health Insurance Awards
  • Winner: Best Customer Service, 2020 Health Insurance Awards
  • 5-star Defaqto rating

While Aviva offers a digital GP service, which not every insurer does, it’s at extra cost and even then capped at three appointments per year

The percentage of successful claims paid is a little on the low side

Maximum Benefit

  • 65% of first £60,000 and 45% over £60,000
  • Maximum benefit: £57,000 per year.

Claims Duration

Either:

  • Full cover to term
    Pays out with no limit, right up until your chosen retirement age if you can never work again
  • Short term cover
    Pays out for 1, 2 or 5 years per claim depending on the option you choose.

Deferred Period

  • Long term cover: 4 / 8 / 13 / 26 / 52 weeks
  • Short term cover: 4 / 8 / 13 / 26 / 52 weeks.

Premium Type

Age-banded or guaranteed

Claims Paid

90% in 2022

Additional Benefits

  • Terminal illness benefit, waiving the deferral period and paying out straight away if you’re diagnosed with less than 12 months to live
  • Recovery support benefit, a lump sum of 4 times your weekly benefit 4 weeks after your final benefit payment to bridge the gap between your claim ending and your next pay day after returning to work
  • Care assistance benefit of £125 per week for up to 26 weeks if your spouse / partner / child suffers a serious illness / injury that means they need at least 35 hours a week of care for 4+ weeks
  • Death benefit of 6 times your benefit if you die during the policy
  • Bereavement benefit of 13 times your weekly benefit if your spouse / partner / child (up to the age of 18) dies during your policy term.

Mutual Benefits

  • Mutual Rewards
    Discounted gift cards / e-vouchers offering savings of up to £250 a year on high street shopping, plus entry into quarterly prize draws with prizes of up to £1,000
  • Mutual Support
    Each year you get 150 Health Support Points for services such as virtual GP consultations, physiotherapy, counselling and second medical opinions. Once you’ve used your points you can still access these benefits at additional cost
  • Mutual Wellbeing
    Access to services to help improve / maintain wellbeing, such as health MOTs, a health and wellbeing app and information on leading a healthier lifestyle
  • Mutual Partners
    Discounts on services from British Friendly partners, such as Legal & General’s power of attorney / will writing service and 20% off Staysure Travel Insurance, which specialises covering those with pre-existing medical conditions.

The Drewberry Verdict

👍

Offers own occupation cover to riskier occupations that many other insurers won’t cover on this basis or charge more due to their job

🏆
  • 5-star Defaqto rating

While British Friendly covers 65% of your earnings, the highest percentage available with personal Income Protection, it caps your benefit at £57,000 per year. If you earn more than this, another insurer might be better.

Maximum Benefit

  • 65% of gross earnings
  • Maximum benefit: £52,000 per year.

Claims Duration

  • Full cover to term
    Pays out with no limit, right up until your chosen retirement age if you can never work again.

Deferred Period

Day 1 or 1 / 4 / 8 / 13 / 26 / 52 weeks

Premium Type

Guaranteed or age-banded

Claims Paid

95.4% in 2022

Additional Benefits

  • Terminal illness benefit worth 6 months of your benefit if a doctor diagnoses you with less than 12 months to live
  • Recovery benefit, which tops up to your income if you can only return to work after an illness / injury on reduced hours / in a lesser role
  • A Friendly Voice, a telephone helpline staffed by nurses who offer advice and emotional support to those suffering from, or caring for someone with, a physical or mental health issue
  • GP24, a virtual GP service offering 24 / 7 telephone calls with a GP, video appointments 8am-10pm 7 days a week (except Christmas day), private prescriptions and referrals for further investigation / treatment
  • Children’s critical illness support, a lump sum of £2,500 if your child (up to age 21) develops one of ten critical illnesses.

Optional Add-Ons for an Extra Premium

  • Fracture cover
    A lump sum of £1,500 if you sustain a comminuted, complicated, compound, depressed or simple fracture to any of the 19 parts of the skeleton Cirencester lists
  • Hospitalisation benefit
    £50 per night for each night you spend in hospital. Cirencester pays this after 3 consecutive nights backdated to the first night. You can claim for up to 21 consecutive nights and for up to 21 nights per year
  • Immediate death benefit
    A payment of £7,500 to your family if you die during the policy term before the age of 70.

The Drewberry Verdict

👍

Offers own occupation policies to those in some higher-risk occupations that other insurers don’t cover on this basis

👍

Good range of free additional benefits, including a remote GP service, something often only offered by larger insurers

🏆
  • 5-star Defaqto rating.

Annual benefit cap of £52,000. Higher earners needing more than this might be better with another insurer.

Maximum entry age is 54, so you can’t take out a policy if you’re older than this. This is one of the lowest in the market.

No cover if you work overseas for more than 8 weeks in a calendar year. This is more restrictive than many other insurers.

Maximum Benefit

  • Up to 65% of gross earnings
  • Maximum benefit: £65,000 per year.

Claims Duration

Either:

  • Full cover to term
    Pays out with no limit, up to the date your insurance ends
  • Short term
    Pays out for 1 or 2 years for each incapacity depending on which option you select.

Deferred Period

1 / 4 / 8 / 13 / 26 / 52 weeks

Premium Type

Either:

  • Age-banded
    The amount you pay will change with your age each year. You’ll pay less than you do with the level price option when you’re younger, which can help if you’re on a budget, but the price will go up as you get older. This is because the risk of being too unwell to work goes up with age
  • Level-priced
    A level price that won’t go up because you’ve got older. The price you pay at the start will stay the same over time.

Claims Paid

93.4% in 2022

Additional Benefits

  • Terminal illness cover worth 6 times your monthly benefit if you are diagnosed with less than 12 months to live
  • Benefit guarantee of the lower of £1,500 or your monthly benefit if your income falls between taking out the policy and claiming
  • Rehabilitation benefit, paying an income top up for up to 12 months if you can only go back to work part time / in a reduced role due to illness / injury
  • Medical expenses benefit, a lump sum towards treatment a doctor recommends to speed up recovery following a claim, where Holloway’s Chief Medical Officer agrees
  • Premium holiday, allowing a break from the policy by pausing premiums and your ability to claim and the ability to restart it later without medical questions
  • Member assistance programme, a 24 hour telephone helpline offering counselling and advice from specialists on topics such as employment, health and consumer rights.

The Drewberry Verdict

👍

While most insurers let you increase your benefit if you increase your mortgage, Holloway also lets you increase your benefit if your rent rises after moving to a new rental property / your landlord putting up your rent

👍

If you have hazardous hobbies, you can choose to exclude related illness / injury from your policy to avoid higher premiums. Most insurers don’t offer this and either charge more due to such hobbies or exclude them outright without charging less

🏆
  • Winner: Best Individual Income Protection, 2019 Cover Excellence Awards
  • Winner: Best Claims Support, Moneyfacts Awards 2019
  • Winner: Protection Review 2019
  • 5-star Defaqto rating.

If you choose age-banded premiums, Holloway reserves the right to review them up or down after 5 years on top of raising them with age. With most other insurers, age-banded premiums only rise with age.

Maximum Benefit

  • 60% of gross earnings up to £60,000; 50% of gross earnings above £60,000
  • Maximum benefit: £20,000 per month / £240,000 per year (£14,000 per month / £168,000 per year with indexation).

Claims Duration

Either:

  • Full cover to term
    Pays out with no limit, right up until your chosen retirement age if you can never work again.
  • Short term
    Pays out for up to 12 or 24 months for each incapacity. If you return to work for 6 consecutive months, you can claim again for the same illness / injury.

Deferred Period

4 / 8 / 13 / 26 / 52 weeks

Premium Type

Guaranteed

Claims Paid

82.2% in 2022

Additional Benefits

  • Income guarantee of the lower of £1,500 per month or your benefit if your income falls between taking out cover and claiming (doubled to £3,000 for NHS dentists, doctors, midwives, nurses and surgeons)
  • Proportionate benefit, topping up your income if you can only return to work in a reduced role / on reduced hours following illness / injury
  • Hospitalisation benefit of 1/30th of your monthly benefit (up to £150) per night if you spend more than 8 consecutive nights in hospital for up to 13 weeks or until your deferred period ends, whichever is sooner
  • Death benefit worth 12 times your monthly premium if you die during the life of the policy
  • Rehabilitation service from nurses, physiotherapists and occupational therapists to help you return to work after a claim.

Nurse Support Services

A telephone helpline staffed with qualified nurses to offer advice and support if you / an immediate family member develops a physical or mental health condition, disability, trauma or bereavement.

It offers:

  • Bereavement support
  • Advice on treatments and coping strategies, and help sourcing specialist equipment to make life easier after a serious illness / disability
  • Second medical opinion with a UK-based consultant if you have concerns about a diagnosis or treatment
  • Long-term support for a range of mental health conditions including depression, stress, PTSD and bipolar disorder
  • Emotional and practical support if you care for an elderly / sick loved one
  • A personal nurse adviser to offer telephone advice while you recuperate at home after a hospital stay
  • Support with eldercare, including help ensuring relatives can live independently or in a residential home and advice on how to keep them safe.

The Drewberry Verdict

👍

High maximum benefit of £240,000 per year (£168,000 per year if you index your benefit). This is one of the highest available.

👍

Specialist cover for NHS medical professionals with features such as dual deferred periods to match NHS sick pay and a higher income guarantee

🏆
  • Winner: Best Protection Provider, 2020 TMA Partner Awards
  • 5-star Defaqto rating.

Successful claims figures for 2022 are a little on the low side

If you’ve been self-employed for 12 months or less when you apply, Legal & General caps your benefit at 35% of annual earnings rather than the maximum offered to others. Newly self-employed workers are therefore likely to find another provider better.

Many insurers offer a death benefit worth a multiple of your monthly benefit. However, Legal & General’s death benefit is a multiple of your monthly premium, which will likely be much lower.

Maximum Benefit

  • 60% of your gross annual income
  • Maximum benefit: £12,500 per month.

Claims Duration

Either:

  • Full cover to term
    Pays out with no limit, right up until your chosen retirement age if you can never work again
  • Budget option
    Pays out for up to 12 or 24 months for each incapacity. With the 12 month option, you can only choose guaranteed premiums.

Deferred Period

4 / 8 / 12 / 26 / 52 weeks

Premium Type

Guaranteed or reviewable

Claims Paid

92% in 2022

Additional Benefits

  • LV Doctor Services, offering telephone- or app-based access to remote GP services, private prescriptions and a second medical opinion for you and your children (up to age 16)
  • Income guarantee of the lower of £1,500 per month or your original benefit if your income falls between taking out cover and claiming (doubled to £3,000 for NHS doctors and surgeons)
  • Fracture cover, paying up to £2,200 once per year if you suffer a specified fracture
  • Death benefit if you die during the policy term worth £5,000 if you’ve had the policy for 4 years or less, rising to £10,000 for policies 4+ years old
  • Parent and child cover, a payout of 6 times your monthly benefit, up to £25,000, if your child (up to age 21) develops a specified illness during the policy term.

The Drewberry Verdict

👍

Good range of free additional benefits, including fracture cover as standard. This is rarely free with other Income Protection providers.

👍

Offers special features for NHS doctors and surgeons, such as an enhanced benefit guarantee and a split deferred period

🏆
  • Winner: Best Income Protection Provider at every Moneyfacts Awards 2010-2020
  • 5-star Defaqto rating.

Shortest deferral period is 4 weeks. If you couldn’t wait 4 weeks for a payout, another insurer might be more suitable.

Maximum Benefit

  • 65% of gross annual income up to £15,000; 55% of the remainder
  • Maximum benefit: £250,000 per year.

Claims Duration

Either:

  • Full cover to term
    Pays out with no limit, right up until your chosen retirement age if you can never work again
  • Short term
    Pays out for up to 1, 2 or 5 years for each incapacity depending on the option you choose

Deferred Period

4 / 8 / 13 / 26 / 52 weeks

Premium Type

Guaranteed or reviewable

Claims Paid

N/A

Additional Benefits

  • Income guarantee of the lower of £1,500 per month or your original benefit if your income falls between taking out cover and claiming (doubled to £3,000 for NHS doctors)
  • Fracture cover, paying a lump sum of up to £4,000 if you suffer a specified fracture. You can claim twice per policy year
  • Hospitalisation benefit of £100 per night for up to 90 nights if you spend more than 6 consecutive nights in hospital
  • Back to Work Benefit paying 25% of your last benefit payment 1 month after you return to work after an illness / injury with short-term cover. This rises to 50% with long-term cover. It’s followed by 10% of your last benefit for short term cover and 25% for full term cover 2 months after you return to work
  • Death benefit worth 12 times your monthly premium if you die during the policy term.

Helping Hand

Free with all Royal London Income Protection policies, this offers:

  • A second medical opinion service
  • Support when recovering from a heart attack
  • Speech and language therapy after a stroke
  • Complementary therapies to help manage symptoms or help with recovery
  • Access to legal and career helplines for independent advice on employment rights and support in getting back to work sooner.

The Drewberry Verdict

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Good range of free additional benefits, including fracture cover. This is rarely free with Income Protection.

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High maximum benefit of £20,000 per month / £250,000 per year in cash terms

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Special features for NHS medical professionals, including an enhanced benefit guarantee, NHS sick pay mirroring and sabbatical cover

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Self-employed workers can cover fixed payments you must make alongside your wages, for example for services such as insurance or for loans / other credit

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  • Winner: Best Protection Provider, 2020 Money Marketing Awards
  • 5-star Defaqto rating.

Cover limited to 65% of the first £15,000 of your earnings and 55% of the remainder. This is lower than many other insurers. If you more than 55% of your earnings above £15,000, another insurer might be more appropriate.

Many insurers offer a death benefit worth a multiple of your monthly benefit. However, Royal London’s death benefit is a multiple of your monthly premium, which will likely be much lower.

The Best Way To Set Up Income Protection

When setting up your Income Protection Insurance policy, you can go direct to an insurer or take out cover through an intermediary. It’s important to recognise the difference, as one provides you with a lot more protection than the other.

Going Direct To An Insurer

If you go direct to an insurer to set up your policy, it’s considered a non-advised sale. As you have made the decision to take out this policy, there’s no financial protection should the policy be inappropriate—the responsibility lies on your shoulders.

Using An Adviser

Utilising an adviser who provides an advised sale means they’re responsible for the policy they help set up. They need to understand your circumstances fully, including any existing health conditions, to make sure you take out the most suitable cover for your needs. If it turns out their advice was not appropriate, the responsibility sits with the adviser.

Here at Drewberry, we provide a fully advised service, so you benefit from expert advice and know you have that additional level of protection should something go wrong.

We’re proud of the service we provide, and our clients think so too, with 3627 independent reviews on Reviews.co.uk rating us at 4.92 / 5.

Common Income Protection Questions

  • What is better Income Protection or Critical Illness Cover?

    Although these products seem similar, they provide financial protection in different ways. Each has their cover options and purposes.

    Income Protection Insurance covers anything that medically prevents you from doing your job and pays out a monthly income to cover your regular bills.

    Providing you choose the ‘own occupation’ definition of incapacity, Income Protection pays out for accidents, illnesses and injuries that stop you from doing your specific job role. You won’t be asked to perform any other job role if you can’t do your own occupation.

    Common illnesses claimed for under Income Protection policies include mental health issues, musculoskeletal problems (e.g. bad backs) and cancer.

    Critical Illness Cover pays out a tax-free cash lump sum if you’re diagnosed with a critical illness (such as cancer, heart attack or stroke) of a specified severity to claim.

    However, Critical Illness Cover is limited to the illnesses defined in the policy terms and conditions. Whereas Income Protection pays out for anything that medically prevents you from working.

  • Do I really need Income Protection?

    The question of whether you need Income Protection depends on your circumstances. But here are some scenarios to consider if you fell ill without it:

    • Could you survive on your savings for any considerable length of time?
    • Could you survive on government benefits, typically Statutory Sick Pay at £109.40 per week or Employment and Support Allowance which can be up to £84.80 per week?
    • How would your family cope with a sudden loss of income in terms of paying the bills, keeping up with the rent / mortgage, buying groceries, keeping a car on the road etc. if they didn’t have some form of continuation of income?

    If you’re not sure about the answers to these questions, Income Protection might be something to consider to protect your family and your finances in case you can’t work through accident or sickness.

  • What's the maximum Income Protection Insurance benefit?

    The maximum Income Protection benefit is typically 70% of your income for a personal policy. Insurers tend to offer between 50%-70% of your gross (pre-tax) income as a benefit.

    The reason you can’t insure 100% of your gross income is because, after taxes and National Insurance, you don’t receive 100% of your gross income from your employer or your self-employed activities each month/year.

    Most insurers will have a maximum ceiling in terms of the amount they’re willing to cover you for on an annual basis. This could be as low as £45,000 or up to £250,000, so it’s important you choose the right insurer for your level of income.

  • How long does Income Protection last?

    Short-Term Income Protection will pay out for a maximum of 1, 2 or 5 years per injury or illness, per claim. However, the policy lasts until your set retirement age, so you can claim as many times as you need to with different illnesses or injuries for the maximum term.

    If you suffer an illness or injury that takes you beyond the maximum claims period on Short-Term Income Protection, your payments will cease.

    Long-Term Income Protection is a more comprehensive option, as you can claim as many times as you need to, for as long as you need to, right up until retirement age.

    If you’re ever so ill you can never work again, you’ll be entitled to receive your Income Protection benefit right up until your chosen policy cease age.

Compare Best Income Protection Quotes & Get Expert Advice

Finding the best Income Protection can be a bit of a minefield, particularly given the confusion that can occur with Payment Protection and the importance of getting ‘Own Occupation’ cover.

Our expert advisers are here to ensure you have the information and the support you need when setting up the most appropriate Income Protection for your circumstances. Give us a call on 02084327333 or email help@drewberry.co.uk, we’re here to help.

Why Speak to Us?

We started Drewberry™ because we were tired of being treated like a number.

We all deserve a first class service when it comes to issues as important as protecting our health and our finances. Below are just a few reasons why it makes sense to talk to us.

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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
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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.