How Much Does Income Protection Cost In The UK In 2022?

How Much Does Income Protection Insurance Cost?

Even when all personal and policy factors are the same, the Income Protection quotes you get can vary considerably between insurers.

Some insurers are more willing to take on risk than others. For example, many friendly societies are better for those in manual occupations compared with other providers.

That’s why it’s important to compare Accident and Sickness Cover from across the whole market to ensure you’re getting the best deal.

Example Income Protection Premiums

In the table below, we’ve highlighted the average cost of Income Protection for a manual worker (a plumber) and an office worker (an accountant) of three different ages.

The cheapest insurer for the accountant wasn’t the same as the insurer that worked out best for plumbers. Each provider considers occupations and other risk factors differently.

To get these quotes we’ve assumed each individual is:

• In good health
• Applying for an £1,500 a month benefit
• Looking for guaranteed premiums that will never increase
• Not going to index link the policy
• Looking for cover up to the age of 65
• A non-smoker
• Looking for long-term cover rather than a policy which pays out for 1, 2 or 5 years
• Choosing an 8 week deferred period
• Covered on ‘own occupation’ basis, so they’ll get a payout if they’re medically unable to do their specific job.

Working Out Your Own Cost…

Now you know what impacts the price of Income Protection, the most important part is comparing premiums from across the whole market to ensure you get the best deal.

Our Income Protection quote comparison tool pulls results from the top 10 UK insurers.

This makes it easy to calculate your potential monthly premiums in less than a minute. Alternatively, simply pop your details into the form below to get started.

If you need help don’t hesitate to pop us a call on 02084327333 or email help@drewberry.co.uk.

Can I Reduce My Premiums?

Yes, if you know how — or have an adviser who does — there are a number of ways to keep the cost of Income Protection down. This lets you get the cover you need that fits your budget.

Reduce Your Cease Age

When will you likely be able to retire?

It’s an important question, as your cease age determines Income Protection premiums. The longer you need the policy, the higher your premiums will be due to the greater risk of an Income Protection claim as you age.

If you think you can retire slightly earlier, you could reduce your policy cease age to lower premiums.

However, only consider this if you’ll realistically be financially ready to retire earlier. With many the state pension age now standing at 67 or later for many, if you were in a long-term claim with a lowered cease age your policy would stop paying out before you can access your state pension.

Short-Term Cover Cuts Costs

Short-Term Income Protection is also known as low-cost or budget cover. While opting for a short-term policy — which will only pay out for 1, 2 or 5 years per claim — keeps premiums down, you risk your income drying up after this period if you’re in a long-term claim.

Short-term cover means that, even if you were so ill you could never work again, your policy stops paying out once your claims period is up.

Lower Your Level of Cover

How much do you need coming in each month to cover the basic necessities?

You’ll obviously need cover for important bills such as rent / mortgage, utilities, groceries, finance repayments, council tax and other essential outgoings. However, could you survive on slightly less money each month by cutting back on non-essentials if you were off work sick?

If you crunch the numbers and find that you can afford to get by on a lower proportion of your income, you could reduce the monthly payout from your policy to save money.

Increase Your Deferral Period

How long could you manage without an income before you’d need your policy to kick in?

If you have savings to live off or get sick pay from work, you could stretch your deferral period out to save money. The longer your deferral period, the lower the cost of your insurance.

A 13 week deferral period, for instance, could save up to 50% on premiums compared to a policy that pays out after 4 weeks.

Give Up Smoking / Choose a Smoker Neutral Insurer

Smokers pay more for Income Protection with most insurers. This is to compensate for the fact that they’re more likely to become ill, and more seriously ill, than non-smokers.

However, not every insurer hikes premiums if you smoke. Some are ‘smoker neutral’, so they treat smokers and non-smokers the same. Your adviser can direct you to such an insurer if you do smoke and it’s the right provider for you.

Alternatively, if you quit and go nicotine-free for 12 months, following a simple cotinine test (which detects chemicals from the breakdown of nicotine in your body) your insurer could cut your premiums.

Get Own Occupation Protection

Some insurers may offer low premiums because they are not providing own occupation cover. This is often the case for manual workers in particular.

At Drewberry, regardless of our clients’ jobs, we feel that it’s vital your insurer does cover you on an own occupation basis. This ensures your policy pays out if you can’t do your own specific job.

Avoiding Suited Occupation Cover

However, some insurers offer cover on a suited occupation basis. Here, before paying out, the insurer firstly assesses your health. If the insurer thinks you’re fit to do another job your skills and experience suit you to, the insurer won’t pay the claim.

Suited occupation cover can be fairly subjective and we therefore rarely recommend it. We tend to make sure the Income Protection we offer is own occupation cover. That way, clients can rest easy knowing they have the most comprehensive protection.

Compare Income Protection Quotes & Get Expert Advice

The cost of Income Protection can vary considerably depending on your personal circumstances and the choices you make regarding your policy.

There are a number of pitfalls to avoid. This includes policies with lesser definition of incapacity (for example, suited occupation cover), choosing premiums which can rise over time as well as paying over the odds for your plan if you don’t research the whole market.

Fortunately, if it’s all getting a bit confusing and you’d like some help, the team at Drewberry is 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.

• There is no fee for our service
• We are an award winning 🏆 independent insurance broker who works with all the leading UK insurers
• You’ll speak to a dedicated expert from start to finish
• We are very proud of the 3260 and growing independent client reviews rating us at 4.92 / 5
• Claims support when you need it most.
• We are authorised and regulated by the Financial Conduct Authority. You can find us on the financial services register here 🧐

For help and fee-free advice, pop us a call on 02084327333 or email help@drewberry.co.uk.