Income Protection Insurance

Income protection is one of the most important but most overlooked forms of insurance. It pays out a regular monthly income if you are unable to work due to illness or injury, replacing a proportion of your salary and allowing you to meet your financial commitments without depleting savings or falling into debt.

Most people protect their car, their home, and their possessions without a second thought. Far fewer protect their income, despite the fact that losing it is one of the most financially damaging things that can happen to a household.

How Income Protection Works

  • Cover level: Typically replaces 50-70% of your gross income, paid free of income tax
  • Deferred period: The waiting period before the policy pays out, typically 4, 8, 13, 26, or 52 weeks. The longer the deferral, the lower the premium
  • Claim duration: Policies can be short-term (1-2 years per claim) or long-term (paying until retirement age if needed)
  • Definition of incapacity: ‘Own occupation’ cover is the most comprehensive, it pays if you cannot perform the duties of your specific job, not just any job

Who Needs Income Protection?

Income protection is particularly important for:

  • Self-employed individuals and contractors with no sick pay entitlement
  • Employees whose employer sick pay runs out after a short period
  • Primary earners with a mortgage, dependants, or significant financial commitments
  • Anyone whose savings would not sustain them through a prolonged period off work

How Soul Mortgages Can Help

We search the market across all major insurers to find the most suitable policy for your occupation, income, and budget. We consider the small print, particularly the definition of incapacity and exclusions, which is where policies can differ significantly in how they treat a claim.

Income protection is often arranged alongside life insurance and critical illness cover as part of a comprehensive protection review. We recommend revisiting your cover whenever your circumstances change: new mortgage, new job, new family member.

60-65%
Of your income
From 1 week
Deferral periods
Employed & self-employed
Both covered
What we arrange
✓Own-occupation cover
✓Short & long deferral periods
✓Cover for the self-employed
✓Company director arrangements
✓Combined with life & critical illness
✓Reviews as circumstances change
Income protection pays a monthly benefit if you cannot work through accident or sickness, essential for the primary earner, and one of the most overlooked covers by those who need it most.
“The definition of incapacity decides whether it pays; we make sure yours is the right one.”

Get income protection advice →

Income Protection, your questions answered

What does income protection cover?
It pays you a regular, tax-free income if you cannot work due to illness or injury, usually until you recover, retire, or the policy ends. It is designed to replace a portion of your earnings so you can keep meeting your mortgage and living costs.
How is it different from critical illness cover?
Critical illness pays a one-off lump sum for specific serious conditions; income protection pays an ongoing income for a much wider range of illnesses and injuries that stop you working. Many people hold both. We explain which matters most for you.
Won't my employer or the state cover me if I'm off sick?
Usually only for a limited time. Statutory sick pay and most employer schemes run out well before a long-term illness does, leaving a gap that income protection is designed to fill.
Can I choose when the payments start?
Yes. You set a deferred period, the wait before payments begin, to line up with any sick pay or savings you have. A longer deferred period lowers the premium, and we help you choose the right balance.