Why income protection matters more than ever

Income protection is one of the most under-appreciated forms of cover in the UK. While most people insure their cars, homes and even their phones, far fewer protect the thing that pays for everything — their income.

What income protection does

Income protection pays a regular monthly amount if you can''t work due to illness or injury, until you recover, retire, or the policy ends. Unlike critical illness cover, it pays out for any qualifying inability to work, not just a defined list of conditions.

When statutory sick pay isn''t enough

Statutory Sick Pay in the UK is currently a fraction of most household budgets. If your employer''s sick pay only lasts a few weeks or months, your savings are usually the next line of defence — and they don''t last forever.

Choosing the right policy

Key choices include the deferred period (how long before payments start), the benefit amount (a percentage of your salary), and the policy term. An adviser can match these to your savings buffer, employment terms and family situation.

Smaller policies still help

Even modest cover that takes care of your mortgage and bills can be transformative. The most useful policy is the one you actually have in place.