Income protection insurance UK comparison

Comparing income protection quotes can help you to find the right policy to meet your needs, at the best available price.

You may wonder how to go about comparing policies. Three of the most common methods include:

  1. Conduct the research yourself - You’ll need to obtain quotes individually from each insurer. This could be time consuming, particularly if you’d like to get quotes from a number of insurers
  2. Use a comparison site - A quick and easy way of gathering a range of quotes at once. You have the freedom to go at your leisure, however, if you get stuck during the application there’s no one on hand to answer your questions
  3. Use the services of a broker - Using a broker allows you to compare quotes from a variety of insurers with a dedicated team member on hand to take you through the application and provide recommendations on what’s best for you

Reassured are an FCA-regulated broker who can help you compare income protection quotes from the whole of the market, free of charge.

A friendly member of the team can take your personal circumstances into consideration, present you with the most suitable options and give personalised recommendations on what’s right for you.

Income protection insurance through Reassured starts from just 20p-a-day, so why not get in touch?

What is income protection insurance?

Income protection is an insurance policy which can pay out a percentage of your usual income while you’re unable to work due to illness or injury.

Benefit Amount

Up to 70% of your income could be paid out (depending on the insurer) in tax-free monthly payments while you’re unable to work.

Deferred Period clock

Upon making a claim you’ll need to wait for a specified period to pass (the deferred period). If you’re still unable to work, your payments will commence.

Income protection

The tax-free monthly payments you receive can help you to keep up with your financial commitments and other daily living costs.

Want to know what you could be covered for with an income protection policy? Why not read our what does income protection cover guide »

Do I need income protection insurance?

Whether you need income protection insurance will ultimately depend on your personal circumstances.

In 2022, the number of UK adults who are considered ‘economically inactive’ due to long-term illness rose to 2.5 million[1].

With this in mind, if you were unable to work due to long-term sickness would your sick pay or savings suffice in helping you to keep up with financial commitments and key costs?

To help you establish whether income protection is right for you, there are some key questions you can ask yourself:

  • Are you self-employed? As a self-employed worker, you won’t receive financial aid from an employer, making personal cover even more vital.
  • Do you receive sick pay? Does your employer offer a generous sick pay scheme or are you only entitled to statutory sick pay (SSP). Would this be enough to keep you afloat financially?
  • Do you have savings? Could your savings be enough to help cover your financial commitments, or are these funds for something else? Alternatively, are you part of the 1 in 6 adults who have no savings?[2]
  • Do you have any other insurance? Do you receive any sickness benefits from work or do you have other personal cover in place, such as critical illness cover?
  • Do you have another source of income? Perhaps you have a partner with an income who could help cover key costs while you’re off work?

Why not input your financial commitments and other key costs into our handy income protection insurance calculator to get an understanding of what you need to cover?

How much income protection insurance do you need?

To help you with your income protection comparison, enter your financial commitments and key costs into the relevant fields to find out how much cover you may need.

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£723 a month is the average monthly mortgage payment in the UK, with the average monthly rental price coming in at £700.

The majority of our monthly income will go towards rental or mortgage payments.

For this reason, it’s essential to have precautions in place to ensure you could keep up to date with your payments if you weren’t receiving your usual income.

Monthly income protection payments can help to cover this large expense and ensure you can stay in your home.

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According to the Money Advice Service, the average household spends £340 a month on household bills.

This includes electricity, gas, TV and broadband.

£
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Childcare costs are on the rise with it now costing £137.69 per week for part-time nursery for a child under the age of two.

That’s over £550 per month - is this an amount you’d be able to keep up with if you were unable to work?

Becoming ill could also result in the need for additional childcare while you attend doctors’ appointments or medical treatment.

£
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The average household in the UK spends around £97 a week on their food shop, totaling £388 a month.

While this may seem like a small amount in comparison to some of the other expenses mentioned, the food shop is often where we try to scrimp and save when we fall on hard times.

Income protection can take care of the cost of your weekly food shop, as well as many other essential costs.

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At the beginning of 2020, credit card debt in the UK was at £2.1 billion, with almost 27 million UK residents in some kind of debt.

Becoming unable to work could make it hard to keep up with credit card or loan payments (including car finance or other financed goods).

Failure to keep up with payments could result in additional interest being incurred or late fees issues - resulting in a higher total needing to be paid.

£
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The average spent on public transport each month comes to an average of £94.

This includes the cost of public transport, as well as petrol and diesel vehicles.

While this amount may reduce while you’re unable to work as you won’t need to commute there may be additional spending on public transportation if your illness or injury leaves you unable to drive.

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Your total cover estimate

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Let us find your best quotes.

What to consider when making an income protection insurance comparison?

When making an income protection comparison, it’s wise to consider all policy terms and conditions to ensure you’re getting the right policy to meet your needs.

Terms and conditionsDefinition
Benefit amountHow much you’ll receive in your monthly payments. Also known as a cover amount. Typically, this will be a percentage of your annual income.
Policy termHow long your cover will last for. You can choose a term to meet your needs, but with most insurers your policy must end by the time you reach age 70.
Payment periodHow long you’ll receive payments for. This could be on a short-term basis or long-term basis.
Deferred periodThe time in between making a claim and receiving payments. Common deferred periods include 4, 8, 13, 26 and 52 weeks. You must still be unable to work once this period has come to an end for your payments to commence.
Definition of incapacityWhat makes you eligible to make a claim. Most policies come with an ‘own occupation’ definition - meaning you can claim if you’re unable to do your own job.
Premium typeHow you’ll pay for your cover. Premiums can be guaranteed (remain the same), reviewable (change over time) or age-based (increase as you get older).


When securing income protection through a broker, you’ll have a dedicated expert on hand to provide all the information you need to know.

This includes taking you through policy terms and conditions to ensure you’re getting the right cover for your needs.

Income protection policy comparison [top 5]

There are many income protection policies on the market and it can be hard to know what’s right for you.

Conducting an income protection comparison can help you to find out about all your available options so you can select an appropriate policy.

The highest rated income protection providers and policies in the UK are:

  1. AIG - YourLife Plan Income Protection
  2. Aviva - Income Protection+
  3. British Friendly Society – Breathing Space / Protect
  4. Cirencester Friendly - Income Assured Enhanced / My Earnings Protected
  5. Holloway Friendly - My Sick Pay / Reviewable

This list is based on these insurers and policies being rated 5 stars (the highest rating) on Defaqto.

Below we have compared these income protection policies in more detail:

InsurerAge restrictionsPolicy termMaximum benefit amountPayment periodDefinition of incapacityDeferred period
AIG logo 17 - 545 - 53 years
(cover must cease by age 70)
Up to 60% of your earningsShort term (2 years) or full-termOwn occupation, suited tasks or work factors4, 8, 13, 26 or 52 weeks
aviva logo 18 - 595 - 52 years
(cover must cease by age 70)

Up to 65% of your earnings

Short-term (2 years) or full-termOwn occupation4, 8, 13, 26, 52 or 104 weeks
British Friendly logo 18 - 54Minimum of 5 years
(the term can end anytime you wish but must cease before age 70)
Up to 65% of your earningsShort-term (1, 2 or 5 year) or full-termOwn occupation4, 8, 13, 26, or 52 weeks
Cirencester Friendly logo 18 -54No minimum term stated but cover must cease by age 70Up to 65% of your earningsShort-term (2 years) or full-termOwn occupation or suited tasks1, 4, 8, 13, 26 or 52 weeks
Holloway Friendly logo 18 -59Minimum of 5 years
(the term can end anytime you wish but must cease before age 70)
Up to 65% of your earningsShort-term (1 or 2 years) or full-termOwn occupation1, 4, 8, 13, 26 or 52 weeks

Policy information has been taken from each insurers website and is correct as of 04/08/23. While some insurers may offer cover from age 17, Reassured can only offer cover to those aged 18 and over

Using Reassured it’s possible to compare quotes from the insurers listed above, plus many more.

Their whole of market comparison service is fee-free, so why not get in touch today?

Income protection insurance price comparison

The price you pay for income protection insurance will vary between insurers.

When calculating the cost of your monthly income protection premium, insurers will assess your personal circumstances.

This is known as the ‘underwriting process’ and the criteria used can vary between insurers, which is why pricing can differ.

You’ll be required to provide details about yourself and your chosen policy:

Personal details:

Policy details:

  • Benefit amount
  • Policy term
  • Payment period
  • Deferred period

Below is a price comparison between 5 leading insurers available through Reassured.

Quotes are based on non-smoker in good health with an annual income of £30,000. The policy term is until age 65 with a 3 month (13 week) deferred period and a short term payment period:

Age Vitality logo Holloway Friendly logo Legal & General logo Royal London logo AIG logo
30£5.00£6.41£7.04£8.07£9.66
35£5.17£6.88£8.41£9.38£11.23
40£6.28£8.60£9.34£11.39£13.33
45£8.01£11.00£12.17£13.89£16.88
50£10.62£14.63£16.45£18.84£21.86


As you can see from the table above, the price you pay can vary significantly - making comparing multiple quotes essential.

By conducting an income protection comparison, you can find the insurer who offers the right policy to meet your needs at the best price.

Income protection through Reassured starts from just £5 a month. Simply get in touch today for your free quotes.

Short-term vs long-term income insurance protection comparison

An important factor to consider when taking out income protection is whether you want short-term or long-term cover.

This doesn’t actually refer to how long your policy will last (both forms of cover could last up until age 70).

It actually refers to the policy’s payment period (how long you’ll receive payments for).

A short-term policy will pay out for a limited period, this could be well suited to those who benefit from an extensive sick pay scheme or those on a budget (as premiums tend to be cheaper) who want some form of personal cover in place

Alternatively, a long-term policy could pay out until the end of the policy term (if you’re unable to return to work). This option could be beneficial for those who don’t receive sick pay, who want their own personal cover.

Short-term income protection comparison
  • Pays out on a short-term basis (up to a maximum of 1, 2 or 5 years per claim)
  • Up to 70% of your income could be paid out (depending on the provider)
  • Due to the shorter payment period, it can be possible to make multiple claims throughout the policy term
  • Premiums tend to be cheaper
Long-term income protection comparison
  • Pays out on long term basis (up until the end of the policy term)
  • Up to 70% of your income could be paid out (depending on the provider)
  • If you’re unable to return to work you could still receive some form of income for the rest of your working life
  • Premiums tend to be more expensive

Below is a price comparison for short term vs long term income protection.

Quotes are based on non-smoker in good health with an annual income of £30,000. The policy term is until age 65 with a 3 month (13 week) deferred period:

AgeShort-term income protection (1 year) price per monthLong-term income protection (full-term) price per month
30£5.00£12.75
35£5.17£16.39
40£6.28£21.23
45£8.01£26.80
50£10.62£34.41


Compare both short-term and long-term income protection through Reassured to find the best option to meet your needs.

Income protection quote comparison

Conducting an income protection insurance comparison doesn’t need to be a daunting task.

Using the services of a broker, like Reassured, can make the process easy and straightforward.

A friendly member of the team can:

  • Help you compare quotes from all UK insurers
  • Take your personal circumstances into consideration
  • Answer any questions you might have
  • Provide advice on what’s best for your needs

All quotes through Reassured are fee-free and without obligation, so why not get in touch?

Secure affordable income protection today with quotes starting from just 20p-a-day.

FAQs

Which income protection is best?

The best income protection for you will depend on your personal circumstances.

Factors such as your occupation, what you’d like to cover and your budget will ultimately help you establish the best income protection for your needs.

What is the maximum income protection cover UK?

The maximum amount of cover you can secure will depend on which provider you secure cover with.

Typically, the maximum benefit amount you can secure is 70% of your usual annual income.

What’s the difference between PPI and income protection?

The main difference is that PPI is often used to help protect a specific financial commitment - for example a loan.

Whereas income protection is used to protect your income, helping you to cover a wider range of financial commitments and costs.

Is it worth buying income protection?

If you worry about what would happen to your earnings if you couldn’t work due to long term sickness, buying income protection could be beneficial.

Having income protection in place could help to provide you with peace of mind that you could still earn some form of income.

The monthly payments you receive could help to cover:

How much does income protection cost UK?

The price of income protection can vary between insurers and based on your personal circumstances.

Income protection insurance is available from just £5 a month through Reassured.

Why not get in touch to compare quotes and secure cover today?

Sources:

[1] https://www.ons.gov.uk/employmentandlabourmarket/peoplenotinwork/economicinactivity/articles/halfamillionmorepeopleareoutofthelabourforcebecauseoflongtermsickness/2022-11-10

[2] https://moneyandpensionsservice.org.uk/2022/11/07/one-in-six-uk-adults-have-no-savings/

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