Income Protection in the UK: Is it for you?

Sudden illness or injury can never be predicted. And in the event it does occur, it can prevent you from carrying out your daily duties, including your ability to work. Bills have to be paid, and if you are unable to generate an income, this can lead to a very difficult situation. That's where income protection steps in.

This blog explains what income protection is all about and why you should consider choosing this type of policy.

Understanding Income Protection

Income protection is a type of insurance that safeguards a portion of your income if you are unable to work due to certain illnesses or disabilities. It will support you with an income that provides financial stability during a challenging time of illness or injury. This allows you to focus on recovering from a situation without the additional stress of financial burdens.

Unlike traditional health insurance, which covers medical expenses, income protection focuses on replacing some of your lost income (i.e.: up to around 70% of your salary). Income protection can be considered as an invaluable tool for individuals and families who rely on a monthly income to meet their financial obligations.

Benefits of Income Protection

Financial Security: Provides a monthly income when disability or certain illnesses. prevents you from working.

Peace of Mind:

Reduces financial stress during a difficult time. The monthly payouts are a guarantee that can help ensure your monthly financial commitments are met, which means you can rest easy.

Maintain Lifestyle:

Helps you maintain your current standard of living and meet your financial commitments.

Debt Management: Provides a buffer against mounting debt. This is particularly useful if you are in the midst of paying off a mortgage.

Long-Term Security:

Offers a financial safety net for a long-term disability or illness, potentially lasting years or even a lifetime.

Getting Started with Income Protection

Before starting off on an income protection plan, you may need to consider some of the following:

Assess your needs:

Evaluate your current income, financial obligations, and risk tolerance.

Compare plans:

You may want to research different insurers and compare each of their plans based on coverage, benefits, and costs.

Seek professional advice:

Consult an insurance advisor who can help you understand your options and choose the most suitable plan. At BVS Financial and Mortgage Services, our insurance experts will guide you and help you make informed decisions.

Types of Income Protection 

Income protection plans may come in a variety of names, but you will need to choose what suits you most according to your specific needs and circumstances. Primarily there are two types of income protection.

Own Occupation Cover:

This plan is where you personally will enroll yourself to an insurance policy. The monthly premium will be paid by you. Choose a policy with specific features that address your concerns. Such as certain types of illnesses or injuries. You may want to consider the risk associated with the type of job you do when getting an income protection policy. For instance occupations associated with toxic material, construction or any other form of hazard.  

Income protection provided by employer:

As the title implies, this policy is paid for by your employer. While in most cases the employer will pay the monthly premium, others may deduct a portion off your salary to pay the premium. Whatever the premium payment method, the income protection policy is pretty much the same in both types, which is ultimately to provide for you and your family in the event of an unfortunate incident rendering you unable to work and generate an income.

Some useful tips to keep in mind


Choose a plan that replaces a sufficient portion of your pre-disability income (most plans cover somewhere between 50-70% of your income).

Waiting period:

Also known as the deferred period, this is the time between becoming disabled/unwell and receiving your first benefit payout. You may want to choose a waiting period that aligns with your financial situation, particularly your income.


Some plans may exclude pre-existing medical conditions or specific disabilities. Carefully review the exclusions before purchasing a policy. Here again, you may want to consult a qualified and experienced mortgage adviser before finalizing the policy.

Renewal options:

Make sure the plan allows for renewal at pre agreed rates, even if the condition of your health changes.

Do you need Income Protection?

Income protection is a valuable consideration for many individuals. Here are some reasons to consider where income protection will really be of assistance to you.


They could be your partner, parents, children or even relatives. Having dependents creates a financial responsibility. Income protection ensures they are financially supported when you are unable to generate an income due to a disability.

Individuals with limited savings:

Savings can deplete quickly in the case of disability or serious illness. Hospital charges, medication, creating a support system. For all of these things, income protection proves to be a reliable safety net.

Struggling to secure employment:

Following an illness or accident, you might struggle to find alternative employment. Income protection offers financial security during this period of uncertainty.


Income protection is an investment for your financial well-being. It helps you get through unexpected circumstances by providing a safety net if disability disrupts your earning capacity.

By understanding your options and making the right decisions, you can be assured of financial security for yourself and your loved ones during challenging times. Income protection is more than just an insurance policy. Income Protection can ensure you still have some form of salary, when you're unable to work for it.

 * Approved by The Openwork Partnership on 14/06/2024