Income protection: how to compare policies beyond the monthly premium
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Own-occupation cover, waiting periods and benefit length matter more than headline price. Income protection pays monthly income when illness or injury stops you working — unlike critical illness lump sums.
By Money Guide editorial team
Published:
Consumer groups and insurers report steady search interest in income protection as employers shorten sick pay. Policies pay a tax-free monthly income after a waiting period if you cannot work — often until return to work or policy end.
Compare definition of incapacity first: own-occupation cover pays if you cannot do your specific job; any-occupation definitions are harder to claim. Cheaper quotes often use weaker wording.
Align the waiting period with employer sick pay — commonly 4, 8, 13 or 26 weeks. Benefit period to retirement costs more than two- or five-year cover.
Cover is usually capped at 50%–70% of gross income. Employer group policies may overlap — check before buying twice.
See our compare income protection guide and critical illness vs income protection comparison.