Do You Need Income Protection Insurance?
Most people insure their phone but not their income. Here's who income protection is for and what to check before buying.
Most people insure their phone, their car, even their pet — but the thing generating all their income, themselves, often goes uninsured.
What it covers. Income protection pays out a percentage of your salary (typically 50–70%) if you're unable to work due to illness or injury, until you recover or retire.
Who needs it most. Self-employed people and those without generous employer sick pay are the highest priority.
What to check before buying. The deferred period, whether it covers "own occupation" or any occupation, and how long payments continue.
A cheaper starting point. If a full policy isn't affordable right now, an emergency fund covering 3–6 months of essentials provides a basic safety net in the meantime.
This is general information. For advice matched to your personal circumstances, speak to a regulated financial adviser or insurance broker.
Money Made Simple gives general information about money in the UK. It is not FCA-regulated financial advice and does not take your personal circumstances into account. If you need advice specific to you, speak to a qualified adviser.
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