Does income protection cover maternity leave?

No, income protection won’t pay out due to you going on maternity leave.

Income protection is a policy which is used to cover your earnings if you unexpectedly become unable to work due to illness or injury.

It’s often used to help make up any short fall with your sick pay, however it can’t be used in the same way with maternity leave.

Whilst having a baby is event which ultimately requires you take time off from work, resulting in a dip in earnings, this is typically planned time off.

However, income protection could still be beneficial in financially protecting you and your new family when you return to work.

Get in touch with the advised team at Reassured to find out about your options and compare fee-free quotes.

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Income protection for maternity leave [Quick summary]

  • Income protection won’t pay out due to pregnancy, childbirth or going on maternity leave
  • Income protection could pay out up to 70% of your income if you can’t work due to illness or injury
  • Monthly income payments are tax-free and could help you cover essential living costs while you’re off work
  • Some policies could pay out to you if you develop an illness or injury (not related to pregnancy) while on maternity leave
  • Securing an income protection policy during your maternity leave could allow you to protect your income when you return to work
  • Income protection starts from 20p-a-day through Reassured ‡

Do you need income protection when growing your family?

Having a baby is an exciting time and it’s also a time which can prompt you to secure financial protection.

Whether you need cover or not will depend on your personal circumstances. Before securing cover, you could ask yourself the following questions:

  • Do you have savings? - Having personal savings that you can access could help you keep afloat if you were unable to work unexpectedly. However, dipping into savings that were intended for something else (such as a bigger family home or a new car) might not be ideal
  • Do you receive sick pay (and if so, how much?) - Sick pay will provide payments for a certain period while you’re unwell and unable to work. However, some may only be entitled to statutory sick pay (currently £109.40 per week for up to 28 weeks[1]), while others may have a more comprehensive scheme offered by their employer. It’s important to consult your employer or your letter of employment to find out exactly what you’re entitled to
  • Are you self-employed? - If you’re self-employed, you won’t benefit from traditional sick pay benefits, like SSP. While you may have access to employment support allowance (ESA), this is unlikely to allow you to cover all your key costs

Having income protection in place could allow you to continue receiving regular income payments while you’re unable to work due to illness or injury, reducing the need for you to dip into savings or rely on others.

Monthly income protection payments could help you with:

  • Monthly rent or mortgage payments
  • Household bills (gas, electric, water, council tax, broadband)
  • Childcare or school fees
  • Daily living costs (such as the food shop)
  • Debt or loan payments (such as credit card bills or car finance agreements)

How much income protection insurance do you need?

Enter the fields which apply to you to calculate the level of income protection cover you might require to help cover key costs.

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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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Are you protected on maternity leave?

Income protection can’t be used to protect your income while you’re not working due to being on maternity leave.

However, as an expectant mother, there are other forms of financial aid you can utilise:

  • Statutory maternity leave - Eligible employees can take up to 52 weeks maternity leave. The first 26 weeks is known as ‘ordinary maternity leave’ and the last 26 weeks ‘additional maternity leave’[2]
  • Statutory maternity pay (SMP) - Eligible employees can be paid for up to 39 weeks. typically, the first 6 weeks are at 90% of your average weekly wage before tax and the remaining 33 weeks will be £172.48 or 90% of your average weekly wages before tax (whichever is lower)[2]
  • Maternity allowance - Receive payments for up to 39 weeks when you take time off to have a baby. If you’re not eligible for SMP, you could be eligible for this benefit. You could get £172.48 or 90% of your average weekly wages before tax (whichever is lower) for up to 39 weeks[3]
  • Company maternity leave/pay - Your company may provide a company maternity scheme which could allow you to take additional time off and provide you with additional pay

Income protection could help to protect your income once you return to work and into the future.

Why not compare fee free quotes through Reassured?

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Can you claim income protection during maternity leave?

While income protection won’t pay out as a result of pregnancy or childbirth, you could still benefit from the policy during your maternity leave.

Some policies can pay out to you during maternity leave if you develop an illness or injury (not related to pregnancy or childbirth).

There could also be other benefits written into the policy terms and conditions that could help you during this time.

The table below shows popular insurers and the benefits they offer to those on maternity leave:

InsurerBenefit
Legal & General Should you become incapacitated during any period of statutory maternity, paternity or adoption leave, you will be entitled to receive your monthly benefit provided you were in employment/self-employment before taking leave.
Aviva If you’re incapacitated while on maternity, parental or adoption leave, you can claim your benefit. It has to be within 52 weeks of the start of your leave, child’s birth or the date of legal adoption (whichever started the earliest). Your claim will be assessed based on the job you were doing in the 12 months before your leave.
Holloway Friendly logo Premium holiday after a qualifying period to allow for maternity/paternity leave. While this won’t provide pay outs to you during maternity leave, it means you won’t have to pay your premiums for an agreed time during your leave.

Please note that not all insurers offer benefits like these. It’s essential to read through policy documents to know exactly what’s offered.

The benefit of securing cover through a broker, like Reassured, is that you can ask any questions that you need along the way.

So, if you plan on growing your family and you’d like your policy to include benefits like the ones listed above, the team can find suitable policies and provide you with the correct information.

Simply get in touch for your fee-free quotes.

Can you apply for income protection while on maternity leave?

You should be able to apply for income protection while on maternity leave.

If you were in employment or self-employed prior to going on maternity leave and intend on going back to this role, then securing an income protection policy during your leave can help you protect this income when you return to work.

Compare income protection quotes from the whole of the market through Reassured’s advised team to find the best available deal.

Is pregnancy excluded from income protection?

Yes, pregnancy isn’t a condition that you can claim on an income protection policy for.

This is because pregnancy is regarded as a lifestyle choice, rather than a medical condition.

Income protection will only cover you for unexpected illness or injury which prevents you from working, therefore, pregnancy or childbirth won’t be covered.

Compare income protection quotes [save time and money]

While you won’t be able to claim income protection for pregnancy or childbirth, there are still benefits to securing a policy.

Securing income protection during your maternity leave could allow you to protect your income when you return to work so, if you become unable to work, you could still provide for your family.

Through the advised team at Reassured you can compare quotes from the whole of the market, allowing you to find the best available deal on a policy that meets all your needs.

A friendly member of the team can also provide personalised recommendations on what option is best for you.

Get started today and compare fee free quotes. Prices start from just 20p-a-day.

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Income protection insurance maternity leave FAQs

When is a good time to get income protection?

There’s no right or wrong time to secure income protection. However, a big life event, such as having a child is often one that prompts people to look into financial protection.

While income protection won’t cover maternity leave, it could be beneficial to have in place to protect you and your family in the future.

If you were to develop an illness or injury that prevented you from working, the monthly payments you receive could be a huge financial help to your new family.

What is a deferred period for income protection?

A deferred period for income protection refers to the time in between your first sick day at work and the day your payments begin.

Your payments will only commence if you’re still unable to work once your deferred period has come to an end.

Typical deferred periods for income protection include 4, 8, 13, 26 or 52 weeks.

Does Aviva income protection include pregnancy?

No, Aviva income protection won’t pay out to you as a result of pregnancy. However, they are one of the insurers that can allow you to claim on your policy while you’re on maternity leave.

If you develop an illness or injury during your maternity leave that would prevent you from doing the job you were doing before your leave (unrelated to pregnancy and childbirth) you could receive monthly payments.

Sources:

[1] https://www.gov.uk/statutory-sick-pay

[2] https://www.gov.uk/employers-maternity-pay-leave

[3] https://www.gov.uk/maternity-allowance/what-youll-get

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