Income Protection, because bills don't take sick days.
A monthly payment if illness or injury stops you working — a share of your usual income, paid directly to you tax-free until you're well enough to return to work or until the policy ends. It's the one cover financial advisers quietly rate as the most important of all.
How it works
A share of your income — the maximum varies by insurer and your earnings, and is confirmed at underwriting. Enough to help pay the mortgage, bills and food.
The wait before payments start — 4, 8, 13, 26 or 52 weeks. A longer wait means cheaper premiums; match it to any employer sick pay.
If you can't work due to illness or injury, the tax-free monthly benefit lands in your account until you recover, retire, or the policy ends.
Who it's for
- Self-employed people with no sick pay
- Employees with limited or Statutory Sick Pay only
- Mortgage holders — the lender won't wait
- Anyone whose family depends on their income to run the household
What's included
- Own-occupation definition (pays if you can't do your specific job)
- Any-occupation and suited-occupation options at lower cost
- Short-term (2-5 year payout) or full-term (to retirement) policies
- Index-linked benefit to keep pace with inflation
- Rehabilitation and return-to-work support included
- Covers physical illness, mental health, musculoskeletal and more
- Tax-free monthly payments on personally owned policies
The devil is in the definitions.
Income Protection is the cover where policy wording matters most. ‘Own occupation’ vs ‘any occupation’, how insurers treat mental health, musculoskeletal and self-employment — these small details decide whether you get paid at claim. We cut through it so you buy a policy that actually works.
- Own-occupation cover prioritised where appropriate
- Fair underwriting for mental health history
- Specialist advice for self-employed and limited company directors
- Comparison of claim statistics across insurers
Common questions
Is the payout taxed?+
No — personal Income Protection pays out tax-free. (Executive IP paid for by your limited company has different tax treatment — we'll explain.)
What's a deferred period?+
It's the wait between stopping work and receiving the first payment. Common waits are 4 weeks (self-employed), 13 weeks (if employer gives 3 months full pay) or 26 weeks (if 6 months). Longer defer = cheaper premiums.
Will it pay if I have mental health or back pain?+
The best policies cover these fully — some restrict them. We'll show you which insurers treat them properly before you commit.
Does it affect my benefits?+
Universal Credit and other means-tested benefits can be reduced by Income Protection payments. For most people with a mortgage, the policy still pays off handsomely — we'll run the maths for you.
Request an Income Protection quote
A YPS advisor will give you a call to work out the right benefit, deferred period and insurer for your situation.
