Protection Insurance in 2025: It’s Not As Expensive As You Think

Why Are Guesses So Wrong?

It’s not just a matter of numbers, it’s a matter of perception. Our survey reveals that cost is the single biggest barrier stopping people from getting protection insurance, yet most of these worries are rooted in guesswork rather than reality. So, what’s driving these misconceptions?

Protection Feels Like a Luxury

People often put insurance in the same mental category as high-cost extras. But protection isn’t a luxury. Losing your income could jeopardise your home, your bills, and your entire standard of living.

Yet when people hear the word “insurance”, they imagine hefty monthly premiums. Without clear, relatable examples of cost, they assume it’s beyond their budget, even when it’s not.

The Focus is on Worst-Case Scenarios, Not Affordability

Much of the conversation around protection focuses on life-altering illness or death. These are emotionally heavy topics which create an unspoken assumption that a big payout means a big premium.

But insurance policies are far more flexible than people realise, with adjustable options that tailor cover to your budget.

With so many factors and options to consider when buying protection insurance, we know it can quickly become overwhelming.

Our team of specialists are here to help ensure you buy the right policy for your needs. We’ll search the UK market on your behalf to find the most competitive deal. Call us on 02084327333 or email help@drewberry.co.uk.

Rauri Taylor
Independent Protection Adviser

Why Getting the Cost Wrong Leaves Millions at Risk

Despite the fact that our income is what keeps a roof over our heads and food on the table, shockingly, just 9% of Brits have any form of Income Protection in place and only 38% have Life Insurance, leaving the vast majority exposed to financial hardship if illness or injury stops them working.

Heavy Reliance On Employer Sick Pay

With so few people protected, it’s no surprise that many are forced to lean heavily on alternative safety nets. When asked how they’d cope financially if they were out of work for six months, a significant number said they’d rely on employer sick pay or savings.

But these fallbacks are far from guaranteed. Statutory sick pay is modest, and what employers offer varies widely and savings can soon dry up when having to cover every day expenses.

To make matters worse, despite many relying on sick pay, nearly a quarter of respondents admitted they don’t actually know what support they’d receive from their employer if they were off work, meaning uncertainty could hit just when families need stability most.

Lack of Forward Planning

12% of survey respondents admitted they didn’t know how their loved ones would cope if they passed away, leaving them potentially exposed to moving from the family home or relying on state benefits should the worst happen.

Reliance on a Strained Health Service

53% of respondents said they’d experienced delays getting treatment on the NHS, yet Health Insurance uptake remains low. There’s clearly a disconnect between frustration at the NHS waiting times and resistance to having Private Medical Insurance. Health Insurance can reduce the strain on our cherished health service, helping to tackle medical issues before they become larger problems.

How Much Does Protection Insurance ACTUALLY Cost?

There’s no one-size-fits-all when it comes to the cost of personal protection insurance. It’s a highly personal product, and the amount you’ll pay depends on a number of different factors. That’s why it’s important to compare cover across the whole market to get the best deal.

As an example, here’s a comparison of the average Income Protection cost for a healthy 35-year old non-smoker who wants to guarantee a payout of £1,500/month. We’ve also shown a range of deferral periods (the time between a claim a payout) to show the variation in price:

And for that same 35-year old non-smoker, here’s what a range of Life Insurance payouts might cost them for decreasing term cover:

For that same 35-year-old non-smoker, here’s how monthly Health Insurance premiums can vary depending on the level of cover chosen. These example quotes are based on a healthy individual opting for a £250 excess:

To put things into perspective, a weekly takeaway might cost around £50-£60 a month, and streaming services such as Netflix and Spotify can add up to £25-30. For around the same monthly cost as food and entertainment, you could protect your most important financial asset – yourself.

And unlike Netflix, protection insurance pays you back when you need it most. Compare quotes to see how much a policy could cost you, or call our friendly advisers on 02084327333.

There’s Extra Value for Money with Additional Perks

Alongside your core cover, nearly all protection insurance policies (including Critical Illness Cover, and Private Health Insurance) come with additional (and often free) services. They’re designed with wellness in mind, giving you access to perks such as Virtual GPs, counselling services, and nutritional/fitness advice.

These additional services offer genuine value for money, which is why it’s so surprising to see that 55% of people don’t believe their insurance policies come with any extra perks, and 27% aren’t even sure.

In fact, there aren’t many insurance products that won’t have these benefits included. It’s in insurers’ interest to offer them, as policyholders who make use of these services are more likely to keep themselves in good health, and less likely to make a claim.

Not only are most of these services free to use, you don’t have to make a claim to access them. They’re there to provide added support and help you before they get to the point of needing to make a claim.

Samantha Haffenden-Angear
Independent Protection Specialist

How to Get Protected, Without the Pricetag

The cheapest policy isn’t always the best for your needs, but there are a few tricks to make cover more cost-effective.

Make Tweaks to Your Policy

There are a number of different policy tweaks you can make to keep premium costs down, such as choosing a lower policy “cease age” or lowering your payout amount. An independent adviser can help you make affordable tweaks to your policy while maintaining the right level of cover.

Independent Advice Makes All the Difference

And speaking of advisers, the method of buying protection insurance can have just as much impact on the value as the content of the policy itself. According to our survey, only 16% of people seek advice before buying insurance, and most use comparison sites or go directly to insurers.

Speaking to an independent insurance adviser can save you time, money, and stress. Advisers know the market inside out and can help you avoid common pitfalls, such as paying for unnecessary extras or missing out on valuable perks. Best of all, their advice is often free and they’ll be on hand if you ever need to make a claim.

Tailor Your Cover To Your Needs

Think carefully about what you actually need from your policy. Do you need a high payout, or would a lower amount still offer the security you want? Adjusting your payout, policy term, or deferral period (for Income Protection) can make a significant difference to your monthly premium. Or for health insurance, do you need a comprehensive plan or would a basic one be better than nothing?

Look Out for Added Benefits

As mentioned many policies come with extra services like access to Virtual GPs, counselling, and wellness support. These perks can add real value to your policy, so ask what’s included before you buy.

Review Your Cover Regularly

Life changes, and so do your insurance needs. Review your policy every couple of years or after major life events (like buying a house or starting a family) to make sure you’re still getting the best value.

The True Cost of No Protection

While many fear the monthly cost of protection insurance, the real danger is what happens if you don’t have it. Even a short-term illness could send your finances into freefall, especially when the cost of living is so high.

Protection insurance is a fundamental layer of financial security, and it’s far more affordable than most people think. If you’ve delayed taking out a policy because of cost, it’s time to redo the maths.

Our advisers can help you understand your options, your risks, and what protection really costs – because the biggest financial mistake is underestimating the cost of going without. Give us a call on 02084327333 or email help@drewberry.co.uk to get started.

Other Top Stories From the Report

• Only 1 in 11 Brits Have Income Protection: Why We’re Failing to Protect Our Most Important Asset
• The One Life Insurance Mistake That Could Cost Your Family Thousands
• Own or Rent? Either Way, Your Home Depends on Your Income

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 spcialist from start to finish
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• Claims support when you need it most.
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