If you couldn't work tomorrow because of illness or injury, how long could your household keep paying the bills? For many people the honest answer is "not very long": and that's exactly the gap income protection is designed to fill.

What income protection actually does

Income protection pays you a regular, usually tax-free, monthly benefit if you're unable to work due to illness or injury. Unlike a one-off lump sum, it replaces a portion of your earnings (typically up to around 60% of your gross income) for as long as you're unable to work, up to the policy's limits. Because it's based on a percentage of earnings, it's designed to support you without removing the incentive to return to work.

How long do payments last?

That depends on the type of policy you choose:

• Short-term cover pays benefits for a set period, often one or two years per claim. It's usually cheaper, and can be enough if you have other resources to fall back on.
• Long-term cover can pay right up until you return to work, retire, or the policy ends: giving far greater security if a serious condition keeps you off work for years.

The "deferred period"

Every policy has a deferred period: the waiting time between being unable to work and benefits starting. Common options are 4, 13, 26 or 52 weeks. A longer deferred period lowers your premium, so it's worth matching it to any sick pay your employer provides or savings you could rely on in the meantime. If you're self-employed with no sick pay, a shorter deferred period may be worth the extra cost.

What it covers: and why that breadth matters

Unlike critical illness cover, which pays only for listed conditions, income protection covers almost any illness or injury that stops you working. That breadth matters because the most common reasons for long-term absence aren't always the dramatic ones: musculoskeletal problems such as back and neck pain were the single biggest cause of individual income protection claims in 2024 (around a third of claims), with mental health conditions another major cause. These are exactly the conditions a list-based policy might not cover.

"Own occupation" and other definitions

How a policy defines "unable to work" is one of its most important features. The strongest definition is "own occupation", which pays if you can't do your own job: even if you could in theory do another. Weaker definitions pay only if you can't do any suitable work, or are linked to specified activities. Two policies can look similar on price but behave very differently at claim time, so the definition is worth checking carefully.

What affects the price

Premiums are based on your age, health, occupation (riskier or more physical jobs cost more), the proportion of income you cover, how long benefits would pay for, and the length of the deferred period. You can bring the cost down by extending the deferred period or choosing short-term rather than long-term cover: provided that still matches the protection you actually need. As with critical illness, premiums can be guaranteed or reviewable.

Useful options to look for

Many policies offer index-linking, which increases your cover (and benefit) in line with inflation so it keeps pace with rising costs. Others include proportionate or "rehabilitation" benefits that top up your income if you return to work part-time on reduced pay, plus practical support to help you get back to work. These features can make a real difference to how useful the policy is in practice.

Who should consider it?

Income protection is especially worth considering if you're self-employed, have little or no employer sick pay, or have financial commitments (a mortgage, rent, dependants) that rely on your income. Statutory sick pay, where it applies at all, is modest and time-limited, and the self-employed don't get it at all. If you have substantial savings or generous long-term sick pay, your need may be lower.

The bottom line

Your ability to earn is one of your most valuable assets, yet it's often the least protected. Income protection won't make being unwell pleasant, but it removes the financial fear so you can focus on recovery: and because the vast majority of protection claims are paid, it can be a genuine safety net when it's needed most.