# How to compare income protection insurance in the UK > Insurance · Last updated 4 July 2026 Canonical HTML: https://moneyguide.org.uk/insurance/compare-income-protection-guide/ Markdown mirror: https://moneyguide.org.uk/insurance/compare-income-protection-guide.md ## Quick answer Compare income protection on definition of incapacity (own occupation vs any occupation), waiting period, benefit period, cover level (% of income) and premium type — not monthly price alone. Own-occupation cover is stronger but costs more; align waiting period with employer sick pay. Income protection pays a monthly income when illness or injury stops you working — often until retirement. Unlike critical illness lump sums, it replaces earnings over time. This hub explains how to compare policies fairly. ## Key facts - Own-occupation cover pays if you cannot do your specific job; any-occupation is harder to claim - Waiting periods typically 4, 8, 13, 26 or 52 weeks — match to employer sick pay duration - Benefit period may be short (2–5 years) or to retirement age — longer costs more - Cover is usually capped at 50%–70% of gross income — insurers avoid over-insuring - ABI+ style clarity varies — read the incapacity definition in the policy wording ## Own occupation vs any occupation Own-occupation (or 'own job') definitions pay if you cannot perform your specific role — vital for specialists such as surgeons, electricians or dentists. Suited occupation or any-occupation definitions only pay if you cannot do any job matching your skills and experience — claims are harder to succeed. Cheaper quotes often use weaker definitions. Compare policy summaries side by side, not premium alone. ## Waiting and benefit periods The waiting (deferred) period is how long you must be unable to work before payments start. Match it to the end of your employer's full sick pay — often 13 or 26 weeks for public sector, shorter in private firms. Benefit period is how long payments continue. Short-term policies (2 or 5 years) are cheaper; to-retirement cover protects against long-term disability but costs significantly more. Index linking increases payouts with inflation — important for policies lasting years. ## Cover level and tax Insurers cap cover at a percentage of gross income because state benefits and partial work may also be available. Over-insuring leads to proportionate reductions at claim. Income protection payouts are tax-free if you paid premiums from taxed income (not via employer scheme). Employer-provided group income protection may offset individual cover — check overlap before buying two policies. ## Frequently asked questions ### How is income protection different from critical illness? Critical illness pays a lump sum on defined serious diagnoses. Income protection pays monthly income when you cannot work — regardless of specific illness, subject to incapacity definition. ### Does it cover redundancy? No — unemployment is excluded. Some separate accident-only products exist but mainstream IP covers illness and injury only. ### Will mental health be covered? Most policies cover mental health conditions preventing work, subject to medical evidence and exclusions for pre-existing conditions. Check the wording and disclosure requirements. ## Primary source https://www.abi.org.uk/products-and-issues/topics-and-issues/protection-insurance ## Related - [Income protection vs critical illness](https://moneyguide.org.uk/insurance/income-protection-vs-critical-illness/) - [Compare critical illness cover](https://moneyguide.org.uk/insurance/compare-critical-illness-cover-guide/) - [CI vs income protection](https://moneyguide.org.uk/compare/critical-illness-vs-income-protection/) - [Featured offers*](https://moneyguide.org.uk/offers/) --- Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.