What is income protection insurance?If you get sick or injured and need to take extended time off work, income protection pays you part of your monthly income. It can pay out for a range of conditions including cancer and mental health issues.
The payout is tax-free and can help you protect your finances while you recover. The money can cover anything, like bills, mortgage repayments, rent and childcare costs. Because you don’t pay tax on your monthly payments, it should replace most of your salary.
It's also called loss of income insurance, salary protection insurance or income insurance. They’re all the same thing.
Why choose an income protection plan with Vitality?
5 Star income protection
Our cover is verified as a trusted product.
Extra financial support
Get up to £2,000 towards specialist care and support to help you get better.
Mental health support
Access Togetherall, an online mental health support service.
Discounts and rewards
Get discounts on popular health and fitness brands and rewards for being active.
Do you need income protection insurance?
- You couldn't cover your outgoings if you didn’t have an income
- You couldn't pay your bills with Government benefits or you’re not eligible. The Employment and Support Allowance pays between £74.35 and £113.55 a week (turn2us.org.uk, 2021)
- You wouldn't get sick pay (for example if you’re self-employed)
- You're a single income household
- You’re the main income earner.
What does income protection insurance cover?
Our income insurance covers you if you:
✔Become disabled and can’t work
✔Need to take time out of work due to mental health issues.
Like most insurers, our income insurance won’t pay out if you’re:
✘Still getting paid sick pay.
How our income protection claims process works
1. Make a claim
2. We'll assess the claim
Income protection insurance FAQs
Do you pay tax on income protection insurance?
How soon can I claim income protection?
Does income protection cover being sacked?
What does income protection not cover?
- If you’re off work for less than your policy’s deferred or waiting period
- If you’re made redundant or are dismissed.
What is long-term income cover insurance?
What is short-term income protection cover?
What is the difference between income protection insurance and life insurance?
Life insurance pays out when you die, or if you're diagnosed with a terminal illness.
Why can’t I just rely on state benefits?
Even if you do qualify for Government benefits, you might only get between £74.35 and £113.55 per week. Could you and your family survive on this level of support?
For more information on the Employment and Support Allowance, visit gov.uk.
How long does it take to get income protection?
You have a choice of deferred periods. This is usually done to match sick pay and the longer the waiting period the more affordable the premium is. For example, if you have six months of sick pay, then you would set your deferred period to six months. Some deferred periods can last up to two years.
How much is income protection insurance?
- Your age
- Your medical history
- Your family’s medical history
- Your job
- How much alcohol you drink
- When you want your policy to start
- If you’re a smoker
- What type of cover you choose.
Can I get income protection insurance if I’m self-employed?
Do I get a payout at the end of my income protection policy if I don’t claim?
Self-employed income protection
Self-employed? Find out how income protection could work for you and why you might need it.
Looking to protect your mortgage repayments? Read more about mortgage protection as an option.