# What is income protection insurance?

> Quick answer · Last updated 4 July 2026

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## In short

Insurance paying a monthly income if illness or injury stops you working — usually 50%–70% of gross income after a waiting period, until you return to work or the benefit period ends. Tax-free if premiums paid from taxed income.

Different from critical illness lump sums and from redundancy cover.

Mental health claims are usually covered subject to policy terms.

See compare income protection guide.

## Related

- [Compare income protection](https://moneyguide.org.uk/insurance/compare-income-protection-guide/)
- [CI vs income protection](https://moneyguide.org.uk/compare/critical-illness-vs-income-protection/)

## Primary source

abi.org.uk/products-and-issues/topics-and-issues/protection-insurance

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Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.