Product - Best Insurance

Income Protection Insurance

Developed to look after you in the Best way after a sudden loss in income – whether that’s because you’ve had an accident, you’ve fallen sick, or you’ve been made involuntarily unemployed.

Rated 4.8 stars (1418 Reviews)

What is income protection insurance?

Income protection insurance does exactly what it says – it replaces your income if you can’t work due to illness, injury, or involuntary unemployment. But rather than “replacing” your income, it’s really about protecting it from unexpected loss.

Imagine you break your leg on a Sunday – would you be fit for work on Monday? Probably not! And you shouldn’t have to worry about money while recovering. That’s where income protection comes in. Also known as ASU, it provides monthly payouts to cover essentials like rent, bills, and household costs, so you can focus on getting back on your feet.

Why is income protection insurance important in the current UK job market?

Income protection insurance is always a good investment, but it’s especially worthwhile in the UK’s current climate. The cost of living crisis is still in full swing, and according to the Office of National Statistics (ONS), redundancies were on the rise by the tail-end of 2024. It’s been getting harder to find a new job in recent years, too, which means that in general, circumstances for people out of work have become pretty unstable. And in 2022, worker sick days rose to their highest rates since 2004!

With an income protection insurance policy in your corner, though, you don’t have to worry about any of that. If you lose your job or have to take time away because you’ve been injured or are sick, we’ll give you up to 65% of your monthly income for every month you’re out of work.

What’s the difference between income protection insurance, redundancy protection insurance, and critical illness insurance?

Benefits of Our Insurance

Financial Stability During Unemployment

Reliable Safety Net Over Savings & State Benefits

Peace of Mind in Any Situation

Who needs income protection insurance?

Income protection insurance is a lifesaver for salaried professionals, covering long-term sickness absence and involuntary redundancy alike. Statutory Sick Pay (SSP) sits at just £116.75 a week in 2025, which is often not enough — but income protection insurance can provide up to £2,500 a month to help you maintain your lifestyle if you’re unable to work due to illness or injury.

For the self-employed and business owners, unemployment cover is usually not included, but income protection insurance is still crucial. With limited financial support available, this insurance ensures you don’t face a pay cut if you’re too sick to work.

And if you’re in a high-risk job — like nursing or construction — income protection insurance is even more essential. In 2023/24, 604,000 workers suffered non-fatal injuries at work according to the Labour Force Survey, many needing time off. With the right coverage, you can focus on recovery without worrying about your finances.

Key Features

You can usually claim for up to 6 or 12 months, depending on the income protection policy. Policies typically exclude pre-existing conditions, substance use, self-harm, and voluntary unemployment. If you have complex health needs, a tailored policy may be best

Monthly tax-free payouts

If you need to claim on your income protection insurance policy, you’ll receive up to £2,500 a month (or 65% of your income), completely tax-free.

Excess periods

This is the waiting time between claiming and getting paid. Most people choose a 30-day excess period, but the choice is yours.

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Claim Your Insurance

To file an income protection insurance claim, contact your claim administrator immediately using the details in your policy. They’ll guide you through the process, including forms and required documents. Claims typically take around 30 days; if delayed, follow up with your insurer. For excessive delays or unfair denials, escalate to the Financial Ombudsman Service.

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How does income protection insurance work?

Income protection insurance works like any other benefit policy. After purchasing it online or through a broker, you’ll pay a monthly premium to keep your cover active. Once set up, there’s an Initial Exclusion Period (IEP), usually around 120 days, during which you can’t claim for unemployment. After that, you’re covered for accidents, sicknesses, or job loss.

If you need to claim, contact your claim administrator right away. You’ll need to provide evidence — like medical records for illness/injuries or employer documents for unemployment. Once approved, you’ll receive monthly payments until you’re back at work or find a new job. If your benefit period ends before then, you’ll need savings or another plan in place, which is why opting for a longer benefit period can be worth the extra cost

How much does income protection insurance cost?

Several factors can affect how much your income protection insurance costs, including:

Your age (with higher premiums for older policyholders)
Your job (for example, someone who works in a high-risk job like construction would pay more than someone who works a job that’s comparatively lower-risk)
Your salary (this affects how much money you could claim a month, which affects what you have to pay to keep your cover)
Your health (you might pay more if you smoke, for example, and pre-existing conditions will always be excluded)
Your lifestyle (if you go skydiving on your weekends, for example, you’ll probably pay more than someone who doesn’t)
The length of your excess period (with shorter excess periods costing more and longer ones costing less)

If you want an accurate estimate for what an income protection policy tailored to you might cost, it’s worth contacting a broker directly. You can give Best Insurance a call on 0330 330 9465 to get a quote today!

Comparisons

Features

Best Insurance Income Protection

Long-Term Income Protection

Accident & Sickness Cover

Self-Employed Income Protection

Monthly payout (up to 65% income)

Maximum payout duration

Covers accidents

Covers redundancy

Waiting period options

Eligibility Criteria for Income Protection Insurance

Peace of Mind in Any Situation

Have been in permanent, continuous employment for the last six months with the same employer

Are not subject to any disciplinary action or ongoing enquiry by your employer

Are not aware of any circumstances that might lead to you being made unemployed or becoming a carer

Are not currently off work or working reduced hours because of ill health.

Frequently Asked Questions

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What’s the difference between income protection insurance, redundancy protection insurance, and critical illness insurance?

Redundancy protection insurance covers you if you’re made redundant, providing up to £2,500 per month until you find a new job.
Critical illness insurance pays a lump sum (up to £300,000, depending on the policy) if you’re diagnosed with a listed critical illness, helping with treatment and living costs.
Income protection insurance combines elements of both, offering up to £2,500 per month if you lose your job involuntarily or need time off due to illness or injury.