What if I can't work?
A back injury. Long-term illness. Mental health. Your mortgage payments don't stop just because your income does. How long could you manage?
What is income protection?
Income protection pays a regular monthly amount if you can't work due to illness or injury. Unlike critical illness cover (which pays a one-off lump sum for specific diagnoses), income protection covers any condition that stops you working — including back problems, mental health conditions, and long-term recovery from surgery.
It typically pays 50-70% of your gross salary and continues until you recover, retire, or the policy term ends — whichever comes first. It's the closest thing to a financial safety net you can get.
The sick pay reality check
Most people assume their employer will look after them if they're off sick. And for a few weeks or months, they probably will. But here's what actually happens for most employees:
Weeks 1-4: Full pay
Most employers offer full pay for the first few weeks. You're managing.
Months 2-3: Half pay
Many employers drop to half pay. You're starting to feel the squeeze.
Months 4-6: Statutory sick pay only
£116.75 per week. That's it. Your mortgage alone probably costs more than that.
After 28 weeks: Nothing
Statutory sick pay ends. You're relying on savings, benefits, or family. Your mortgage payments haven't changed.
This is why I always ask about your employer's sick pay during the financial risk review. Most people have never actually checked what they'd get — and the answer is usually less than they think.
How income protection works
There are a few key things to understand:
Deferred period
This is the waiting period before the policy starts paying. Common options are 4 weeks, 8 weeks, 13 weeks, or 26 weeks. A longer deferred period means cheaper premiums — so if your employer gives you 3 months' full sick pay, you could set the deferred period to 13 weeks and save money.
How much it pays
Typically 50-70% of your gross salary. You can't insure 100% of your income — the idea is to cover your essential outgoings (mortgage, bills, food) while you recover, not to replicate your full salary.
Short-term vs long-term
Short-term income protection pays for a limited period (usually 1-2 years per claim). It's cheaper but leaves you exposed if you have a longer illness. Long-term income protection pays until you recover, retire, or the policy ends — it's more expensive but provides proper security.
How much does it cost?
Income protection costs vary based on your age, health, occupation, and the level of cover. Here are some rough examples:
| Scenario | Monthly Benefit | Approx. Cost |
|---|---|---|
| Office worker, 30, 4-week deferred | £1,500/month | £25-40/month |
| Nurse, 35, 8-week deferred | £1,200/month | £30-50/month |
| Teacher, 28, 13-week deferred | £1,800/month | £25-45/month |
These are illustrative examples only. Your actual premium depends on your occupation, age, health, and the level and type of cover. Manual and physical occupations typically cost more. I always get quotes tailored to your specific situation.
Common questions about income protection
Your home may be repossessed if you do not keep up repayments on your mortgage.
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