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Compare income protection insurance

Find the best income protection insurance policy for you today – compares income protection cover and could save you money in a few simple steps.

What's income protection insurance?

Income Protection, also known as IP insurance, is a form of insurance that helps support you financially if you have time off work and suffer a loss of earnings because of injury or illness.

People often think about taking out Income Protection Insurance when they are self-employed and don’t receive sickness pay, or if they rely on good health to make their living, such as those in physical jobs. However, it is important to remember that Income Protection only covers you if you’re unable to work due to illness or injury; it does not pay out if you are made redundant.

Our income protection insurance comparison tool

How to pick an income protection policy

The best income protection insurance policy will:

  • Give you the income cover you need
  • Cover you for the length of time you want
  • Offer the cheapest monthly premiums

To find the cheapest policy for the cover you need, compare quotes from as many income protection insurers as possible.

When you apply, give accurate information about yourself, otherwise you could invalidate your policy, e.g. you say you have never smoked but this is untrue.

How to choose the right policy

Look for an insurer that offers the cover you need by comparing:

  • The maximum cover: This is the highest percentage of your income you can insure.
  • The maximum benefit: This is the most an insurer will let you choose as an income, e.g. £50,000. This could affect the percentage you want.
  • The maximum age you can apply: All insurers have a cut off for when you can apply for a policy; this can vary between 50 and 70 years old.

Some insurers offer reviewable policies, which let you change your cover after a set term.

For example, if you were able to review your policy after 10 years, you could choose to increase your cover. This can be useful if you have had children and want extra cover.

What are the different types of Income Protection?

There are two main types of Income Protection policy. The first is called Permanent Health Insurance (PHI) – not to be confused with private health insurance that covers medical costs. PHI allows you to protect a portion of your income, often 50% of your gross salary in the event of illness or an accident and can pay out until your normal retirement age. We currently don’t provide comparisons for PHI. The second is called Accident, Sickness and Unemployment (ASU) cover and this will allow you to protect the payments on your mortgage or rent, other debts and even some extra income in the event of illness, an accident or losing your job through redundancy.

How much does Income Protection Insurance cost?

Your premiums will be determined by your policy and individual circumstances. Factors that affect the amount you pay are:

  • Job
  • Age
  • Percentage of income you want covered
  • Health
  • When you want your policy to end

Another factor to think about is that there is usually a set period of time before the policy pays out any money to you. This is linked with your policy premiums, so the less you pay for your policy, the longer you may have to wait for your cover to pay out should you need it.

How do I know if Income Protection Insurance is for me?

Nothing in life is free, so it’s worth taking time to think carefully about whether this type of cover is for you. It’s also a good idea to discuss your options with a financial adviser as not all cover is the same.

Here are some things to think about before taking out a policy – and remember, Income Protection Insurance doesn’t cover you for redundancy:

  • What would happen if you got ill and couldn’t afford to pay the bills?
  • If you’re employed, do you have sick pay to fall back on and how long is this paid for?
  • Self-employed? What would you do if you couldn’t work for any reason?
  • Can you afford the level of cover you’ll need? You need to set premiums at an affordable level, but also make sure the policy will cover your bills if you do make a claim.

Finally, it’s worth mentioning that any money you receive from this kind of policy may affect any benefits you’re receiving, if those benefits were calculated on your regular income. If you’re unsure what that would mean for you, speak to a financial adviser before taking out a policy.

Can I get income protection if I am self employed?

Yes, but you will need to provide a year’s audited accounts to prove your income when you apply.

How long does an income protection policy last?

Most insurers offer cover up until you retire, but others specialise in shorter term cover for 12 or 24 months.

Does it pay out if I lose my job?

You can get cover for redundancy, but you will not get a payout if you get fired.

Can I cover 100% of my income?

Some insurers could offer to cover 100% of your income, but still set a maximum amount, e.g. 100% of your income or £50,000 a year.

Does income protection payout if I die?

No, income protection only covers your income for the term of your policy. Look for a life insurance policy if you want a payout for dying.

Who do we include in this comparison?

We include unsecured loans you can get in the UK from our panel. Like other comparison sites, we make money when you click through to a product or service, or go on to purchase it after visiting our site. If you use one of our broker services, we make commission after you buy a product, but it doesn’t cost you anything extra. Our comparisons are free for you to use and you get the same or a better deal than going direct.



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