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What is income protection insurance in the UK?

Insurance is a way of protecting your assets. Since your income is one of your greatest assets, shouldn’t you think about insuring it too?

David Smith
Content Writer


What is income protection insurance?



Income protection insurance is a policy that makes sure you get a regular income until you are well enough to return to work. It allows you to concentrate on your recovery, giving you the financial resilience to cover all your outgoings and providing lasting peace of mind.



Do I need income protection?


Most of us take a few sick days now and then without losing any pay, but if we have to stop working for weeks or even months, it can be a very different story. If your salary is your main or only source of income, you might be disappointed by how little financial help is available. Some employers give generous packages but many will offer only the bare minimum the law requires. For the self-employed there’s even less.



A few things to consider if you’re thinking about income protection



How many sources of income you have


If you depend on your salary and have no other way of earning money, income protection could be the best way to avoid financial difficulties.


What kind of sick pay your employer offers


By law, your employer is obliged to pay you just £116.75 a week. Some will go much further but many will not. Check what your employer will pay you if you have to take sick leave and for how long. If your sick leave lasts 4 weeks for example, you may want to set your policy to kick in after the 4 weeks.


What options you have if you’re self employed


Self-employment has many advantages but you have no employer to help when you can’t earn. The government offers Employment and Support Allowance, but it’s only £90.50 a week. Unless you’ve built up savings specifically for an emergency, income protection could be the solution.


If you have dependants


If your income supports not just you but your partner, children or a loved one, losing it could have a serious impact. Income protection can ensure everyone is well looked after.


If you’re happy spending your savings on household bills and expenses  


If you’ve been able to build up your savings, maybe for a deposit or a major purchase, you may want to consider whether you would be happy using it to pay your bills. 




Choosing your level of cover


If you decide that income protection is something you need then your next decision will be to work out your level of cover. This is the amount your insurance policy will pay out if you make a claim and it’s approved. 


When deciding the level of cover you need, you may want to think about the following:




Who doesn’t need income protection?


Not everyone will need income protection. But at Eleos we believe everyone should know it exists and how it works.


Income protection insurance may not be a priority for you if:


  • You have more than one source of income
  • Your employer gives you generous sick pay 
  • You’ve set aside emergency savings that you’re happy to spend


Of course, if you already have one or more of these, you can still get income protection as it gives you extra assurance knowing that incase of illness or injury, you will be covered. 




Get your quote





Work out how much you’ll need to cover your bills and outgoings - this will give you an idea of how much you’ll need to be paid. After you get your quote you can select your level of cover.
It could cost you as little as £5 a month. The cost depends on: your age, your salary, the amount you’d like to receive when you’re off sick and a couple other factors. The best way to find out is by getting your personalised quote.
The short answer is yes, although to some extent it depends on your lifestyle and financial circumstances. If losing a source of income would make it hard for you to meet your rent or mortgage payments, cover your bills or even pay for daily essentials then yes, it’s definitely worth it. If you have a family to support it’s even more important. Not only does it give you financial security, it provides peace of mind.
If you choose Eleos for your income protection insurance, you pay for your policy each month by direct debit.
When you take out your policy you can pick a 1 year or 2 year benefit period. You’ll keep receiving the monthly payments until you can go back to work or you reach the end of your benefit period.
There is no limit on the number of times you can claim for an illness or injury. For details of how to make a claim, see our full terms and conditions.
Income protection covers you if you are forced to stop working because you fall ill or get injured. You can read about this in more detail in our terms and conditions.
Income protection doesn’t cover you for redundancy and there are a few other circumstances where you won’t be able to claim. You can find full details in our terms and conditions.

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Eleos Life Limited (FRN: 998550) is authorised and regulated by the Financial Conduct Authority. Eleos Life Limited is a company registered in England and Wales (Company Number 14010855), with its registered office at 71-75 Shelton Street, Covent Garden, London, United Kingdom, WC2H 9JQ.©Eleos Life Limited 2024