Income Protection is an insurance policy designed to pay out a replacement income if you can’t work due to accident or sickness.
It provides loss of earnings protection for you and your family in the event that illness or injury keeps you from undertaking your job.
Most people would struggle to survive on government benefits and have limited savings that wouldn’t last very long in the event of a real health emergency. For many working adults it can be an invaluable form of financial protection.
When it comes to working out the cost of Income Protection there are a number of factors to consider including:
Irrespective of the options you choose, it is important to compare the premiums offered by all leading insurers so you know that you are getting the best deal.
Our income protection quote tool compares the top 10 UK insurers so you can find out the potential cost of a suitable policy in less than a minute.
According to consumer group Which?, it’s the one policy every working adult should consider.
The typical cost of an Income Protection Insurance policy will vary depending on a number of factors, making it hard to generalise without knowing more about you as an individual.
However, the below points will make a notable difference to your premiums and are what our expert advisers take into account when setting up a suitable Income Protection policy for your budget.
Some of these factors you can influence, including:
Another option you may want to consider is the type of premium you choose. This will have minimal effect on the initial cost of cover but could significantly increase the amount Income Protection will cost over time.
Other factors involved in pricing Income Protection are more personal to you and are therefore harder or impossible to control for, such as:
For the policy options you choose, different insurers can quote very different monthly premiums so it is vital to compare the cost of the policy across all leading UK insurers to ensure you are getting the best price for your cover.
To make your life easier, we have built an instant income protection quote tool so you can compare both the policy details and the cost of each policy, enabling you to gain the most cost-effective Income Protection policy.
The cost of Income Protection can vary considerably depending on your age, health, occupation, smoker status, sum assured and all of the other factors discussed above.
In the table below, we’ve highlighted how much Income Protection would cost for a manual worker (a plumber) and an office worker (an accountant) of three different ages.
To pull these Income Protection quotes we’ve had to make a number of assumptions, including:
Age at Application
Cost of Premiums per Month
The above Income Protection costs are only example premiums for a fictional person. To get truly accurate pricing we would need to understand your current state of health as well as any additional risks your occupation might entail including extensive overseas travel or business mileage.
In the above example, the insurer that worked out cheapest for those metrics for the accountant was very different than the insurer that worked out best for plumbers.
One of the key pricing factors is your occupation because the risk of injury varies considerably depending on the everyday job role.
It is very important to note that some insurers may offer a low premium because they are not offering ‘own occupation’ cover, which is often the case for people who work in manual occupations.
They may be offering what’s known as ‘suited’ occupation, where the insurer is entitled to assess your health and declare you fit to do another role your skills and experience ‘suit’ you to and therefore decline a claim.
This can clearly be fairly subjective and is not typically what we would recommend for obvious reasons.
For our clients we will always make sure any Income Protection options we recommend have an Own Occupation definition to ensure they have the most comprehensive form of cover.
The cost of Income Protection can vary considerably depending on your personal circumstances and the choices you can make with regards to your policy.
There are a number of pitfalls to avoid including policies with less than desirable definitions of occupation, premiums which can rise over time as well as paying over the odds for your plan if you don’t research the whole market.
We started Drewberry because we were tired of being treated like a number and not getting the service we all deserve when it comes to things as important as protecting our health and our finances. Below are just a few reasons why it makes sense to let us help.
Find the most suitable Income Protection can be a bit of a minefield.
If it is all getting a little confusing please don’t hesitate to pop us a call on 02084327333 or email firstname.lastname@example.org.
I had a great experience with Drewberry, they have a lot of knowledge and expertise with life insurance and income protection and were able to advise me and arrange suitable products. Highly recommend.