By Tahir Abbas, Editor · Last updated 1 November 2026
Income protection pays a regular monthly benefit if illness or injury stops you working. Unlike a lump-sum policy, it is designed to replace part of your lost earnings for as long as you cannot work, up to the benefit period you chose — so the mortgage, rent and everyday bills keep being paid while you recover.
This guide explains what income protection typically covers, what it leaves out, who it suits, and how to compare policies before you buy.
What income protection typically covers
- A monthly benefit, usually a percentage of your pre-tax earnings, while you cannot work due to illness or injury
- Payments after a deferred period you choose, from a few weeks to a year
- Benefit periods ranging from a fixed number of years to retirement age, depending on the policy
- Some policies pay a proportionate benefit if you return to work part-time
- Some policies include rehabilitation support and return-to-work help
What income protection typically does not cover
- The first weeks or months of absence, covered by the deferred period
- Unemployment or redundancy, unless the policy specifically includes it
- Pre-existing conditions, on many policies
- Claims for conditions excluded in the policy wording
- Income above the policy’s maximum benefit or percentage limit
Who income protection is for
Anyone whose household depends on their earnings and who lacks long-term sick pay: employees with limited sick leave, the self-employed, freelancers and contractors. It matters most when savings would run out before you could return to work.
How to choose and compare income protection
- Choose a deferred period you can actually cover from savings or sick pay
- Pick a benefit period that matches how long you might need support
- Check the definition of incapacity: your own occupation, any suited occupation, or any occupation
- Confirm whether the benefit rises with inflation and whether premiums are fixed or reviewable
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Sources and Disclosure
This guide is general information, not financial advice. Plan features described here are general and vary by insurer and state; always read the sample policy before you buy. For the rules governing insurance in your state, see the consumer resources of the National Association of Insurance Commissioners (NAIC). Disclosure: Being Insurance is an independent comparison site. We may earn a commission when you buy through links on this page. That never changes which companies we list or the order we present them in.