If you became too ill to work tomorrow, how long could you realistically cover your outgoings?
A month? A couple of weeks? Or would things get tricky straight away?
It’s a serious question — especially when research shows that millions of adults in the UK have never heard of Income Protection, let alone considered how it could help them if their income suddenly stopped.
In a country where most of us rely on our monthly earnings to pay rent, mortgages, bills, food, and everything in between, that’s a risk worth thinking about.
What is Income Protection?
Income Protection is a type of insurance policy that pays you a monthly, tax-free income if you’re unable to work due to illness or injury. It doesn’t matter whether the condition is short-term or long-term — you’ll continue to receive payments until:
- You’re well enough to return to work,
- You reach the end of your policy term, or
- You retire (depending on the type of cover you choose).
It can be a financial lifeline when you need it most.
How does it work?
Let’s say you develop a serious illness, or you’re signed off work following an accident. With Income Protection in place:
- Your policy kicks in after a waiting period (often 4, 8, or 13 weeks — you choose),
- You receive a regular monthly income (usually up to 60–70% of your pre-tax salary),
- You use it to keep on top of your bills, mortgage, or daily living expenses while you focus on recovery.
Unlike Critical Illness Cover, which pays out a lump sum for specific diagnoses, Income Protection is more flexible — it can cover a wide range of physical and mental health conditions, and it doesn’t need to be a life-threatening illness.
What about Statutory Sick Pay (SSP)? Isn’t that enough?
Unfortunately, for most people, it’s not even close.
As of 2024, SSP pays just £116.75 per week — and only for up to 28 weeks. That’s less than £470 per month. And if you’re self-employed? You may not qualify for SSP at all.
Income Protection can fill that gap — especially if you don’t have generous sick pay from your employer.
Who is claiming on these policies — and when?
One of the most common misconceptions is that Income Protection is only for “older people.” But in reality, most claims come from people in their 30s, 40s and 50s — often in the prime of their working lives.
In fact:
- The average age of a claim is around 42–45 years old, depending on the provider.
- Many claims are for stress, anxiety, depression, or musculoskeletal issues like back pain — not just serious illnesses.
- The most common claim length is 2–3 years, but longer-term policies can continue for decades if needed.
This highlights how illness and injury can affect anyone — regardless of how healthy or “safe” they feel.
Why don’t more people have it?
There are a few key reasons:
1. Lack of Awareness
Income Protection doesn’t get the same airtime as car insurance or even life cover. Many people simply don’t know it exists.
2. Overestimating Employer Sick Pay
A lot of people assume their employer would continue to pay them for months — but in reality, most employers only offer basic SSP or a few weeks of enhanced sick pay.
3. Thinking ‘It Won’t Happen to Me’
We all like to believe we’re invincible — but over a working lifetime, the chances of being off sick for more than a few months are actually higher than passing away before retirement.
4. Assuming It’s Too Expensive
The cost of Income Protection is more affordable than many think. In some cases, it’s cheaper than a takeaway or gym membership — and can be tailored to suit your budget.
So, who needs Income Protection?
If you rely on your income, you should at least consider it. This includes:
- Employees without generous sick pay
- Self-employed workers and freelancers
- People with financial commitments like rent, mortgages or childcare
- Anyone without substantial savings to fall back on
It’s not about expecting the worst — it’s about being prepared, just in case.
How do I get covered?
At Red Star Financial Services, we work with a wide panel of UK insurers to find Income Protection policies that suit your needs and your budget.
We’ll guide you through the options — whether you want short-term cover, full long-term protection, or something in between — and explain things in plain English.
Think it’s time to protect your income?
Get in touch with us today for a free, no-obligation chat.
📞 Call us or visit www.redstarfs.com to learn more and request a personalised quote.