Free conveyancing quote, typically 40% less than estate agent referrals.Get instant quotes →
FCA Regulated • Ref 478810 • 90+ Lenders
Income Protection Insurance London

Income protection London:keep your salary if you can't work

Statutory sick pay is only £116.75 per week. Most people could not survive more than a few months on savings if they lost their income. Income protection insurance replaces up to 70% of your salary if illness or injury stops you working, so you can keep paying your London mortgage and bills while you recover.

Replace up to 70% of salaryCovers any illness or injurySelf-employed welcomeShort & long-term options
Call 0844 884 9748, Mon–Sat 9am–7pm
Step 1 of 3

What type of protection do you need?

Select all that apply. We will find the right solution for you.

£116.75/wk
Statutory sick pay: the UK government safety net
Source: Gov.uk 2025/26 rate
1 in 7
Workers will suffer a long-term illness during their career
Source: ABI / Unum research
0.5–2%
Of annual income: typical annual income protection premium
Whole of market average

Types of income protection insurance

Choose the type that fits your employment status, employer sick pay, and budget.

Lower cost

Short-term income protection

Pays out for a fixed period, typically 1 or 2 years, at lower premiums. Ideal if you have some savings or employer sick pay as a buffer.

Most comprehensive

Long-term income protection

Pays until you recover, retire, or the policy ends. Provides the most comprehensive financial safety net if you suffer a long-term illness.

For directors

Executive income protection

Structured through a limited company to protect directors and contractors. Premiums can be paid by the business as a tax-deductible expense.

How income protection works: step by step

From application to claim, here is what to expect.

01
Needs analysis
We review your salary, employer sick pay entitlement, existing savings, and monthly outgoings (mortgage, bills, living costs) to calculate the minimum monthly benefit you need to protect.
02
Policy design
We recommend the optimal combination of benefit amount, deferred period, policy term, and incapacity definition (own occupation, suited occupation, or any occupation) to give you the best value cover.
03
Market comparison
We compare income protection policies from 20+ leading UK insurers, including Aviva, Royal London, LV=, Zurich, and Holloway Friendly, on price, definition of incapacity, and claims history.
04
Application and activation
We manage the application process. If you cannot work due to illness or injury, you notify the insurer after your deferred period ends and regular monthly payments begin directly to you.

What income protection covers, and what it does not

Covered

  • Any illness preventing you from working
  • Physical and mental health conditions
  • Accidents and injuries
  • Cancer, heart conditions, back problems
  • Up to 70% of pre-tax income
  • Payments until recovery or policy end date
  • Self-employed income (specialist policies)
  • Recurring conditions, can re-claim on same illness

Not covered

  • Redundancy or unemployment (see MPPI instead)
  • Pre-existing conditions (usually excluded)
  • Self-inflicted injuries
  • Conditions arising from drug or alcohol abuse
  • Claims within the deferred period
  • Income above the insured amount
  • Claims after the policy term expires

Income protection cost guide: 2026

Indicative monthly premiums for a desk-based, non-smoking professional. 13-week deferred period, own-occupation definition, long-term cover to age 65.

Age£1,500/month benefit£2,500/month benefit£4,000/month benefit
30~£18/month~£30/month~£48/month
35~£25/month~£42/month~£66/month
40~£38/month~£62/month~£98/month
45~£58/month~£96/month~£152/month

Manual workers pay higher premiums. A 4-week deferred period increases premiums by ~20–30%. We compare the market to find your most competitive rate.

How much income protection do I need?

You can insure up to 70% of your pre-tax (gross) income, minus any state benefits you would receive. The goal is to cover your essential outgoings: mortgage or rent, utilities, food, insurance, without incentivising you not to return to work.

Example: Employed professional in London, earning £75,000/year

  • Monthly mortgage: £2,200
  • Monthly bills & living costs: £1,400
  • Total monthly need: £3,600
  • 70% of gross income: £4,375/month (maximum insurable)
  • Employer sick pay (3 months): choose 13-week deferred period
  • Recommended benefit: £3,600/month, 13-week deferred period

For a 38-year-old professional, this would cost approximately £55–£75 per month from a leading insurer.

As a rough rule, income protection costs 0.5–2% of your annual income as a yearly premium. Someone earning £60,000 can expect to pay £300–£1,200 per year (£25–£100 per month) depending on their age, occupation, and the policy terms chosen.

Income protection FAQs

What is income protection insurance?
Income protection insurance replaces a percentage of your income, typically 50–70%, if you are unable to work due to illness or injury. It pays out as a regular monthly income until you recover and return to work, or until the end of the policy term. Unlike critical illness cover, it is not limited to a specific list of conditions.
How long does income protection pay out for?
This depends on the type of policy. Short-term income protection pays for a fixed period (typically 1–2 years) and has lower premiums. Long-term income protection can pay out until you return to work or reach retirement age. We will advise which is most appropriate for your situation and budget.
What is the deferred period?
The deferred period is how long you wait after stopping work before the policy starts paying out. Common deferred periods are 4, 8, 13, 26, or 52 weeks. A longer deferred period means lower premiums. If your employer pays sick pay for 3 months, a 13-week deferred period makes sense. We will help you choose the right balance.
Can self-employed people get income protection?
Yes, and income protection is arguably even more important for self-employed people, who have no employer sick pay to fall back on. We work with specialist insurers who understand self-employed income and can structure a policy that genuinely protects your earnings.
How much does income protection cost?
Premiums depend on your age, occupation, health, the amount you want to cover, the deferred period, and the policy term. A 35-year-old in a desk-based role might pay £30–£50 per month for comprehensive cover. We compare the market to find you the most competitive premiums.
Is income protection the same as PPI?
No. Payment Protection Insurance (PPI) was a different, much more limited product that was widely mis-sold. Income protection is a standalone, regulated insurance product that genuinely replaces your income. It is one of the most important protections you can have and is strongly recommended by financial advisors.
How much income protection insurance do I need in London?
You can typically insure up to 70% of your pre-tax income. Given London's high cost of living and mortgage payments, most people opt for the maximum available. As an example: if you earn £60,000 per year, you could protect up to £42,000 per year (£3,500 per month). This should be enough to cover your mortgage, bills, and basic living costs while you recover.
What is the difference between income protection and critical illness cover?
Income protection pays a regular monthly income if you cannot work, from any illness or injury, not just a defined list. Critical illness cover pays a one-off lump sum when you are diagnosed with a specified serious condition (like cancer or heart attack). Income protection is broader but pays out over time rather than in a single sum. Many people benefit from having both.
What is own occupation income protection?
"Own occupation" is the most comprehensive definition of incapacity used in income protection. It means the policy pays out if you cannot perform your specific job, not just any job. For example, a surgeon with a hand injury could claim under an own-occupation policy even if they could theoretically do other work. We recommend own-occupation cover wherever possible.
How does income protection work with statutory sick pay?
Statutory sick pay (SSP) in the UK is just £116.75 per week (2025/26 rate) and only lasts 28 weeks. For most London homeowners, this is nowhere near enough to cover mortgage payments and living costs. Income protection bridges the gap between what your employer pays and what you actually need, starting after your chosen deferred period.

Related protection & mortgage services

Life Insurance →

Protect your mortgage and family if you die, from £10/month.

Life Insurance in Trust →

Why writing your policy in trust bypasses probate and reduces inheritance tax.

Trusts for Homeowners →

Complete guide to trusts: life insurance in trust, property trusts, and estate planning.

Critical Illness Cover →

Tax-free lump sum if diagnosed with cancer, heart attack or stroke.

Mortgage Protection Hub →

Overview of all protection products including income protection.

Mortgage Payment Protection →

Short-term cover if you are made redundant. Covers MPPI.

Get your free income protection quote

We compare 20+ leading UK insurers. Serving all of Greater London. FCA regulated advice.

Get a Free Initial QuoteCall 0844 884 9748

Mortgage International is an appointed representative of The Right Mortgage Limited, authorised and regulated by the FCA (Ref: 478810).

Get a Free Quote