Income Protection Estimator
Your Income Protection Estimate
Annual Income-
Coverage Percentage-
Monthly Benefit (tax-free)-
Annual Benefit-
Estimated Premium
Estimated Monthly Premium
Estimated Annual Premium-
Benefit-to-Premium Ratio-
Income Protection Premium Guide — 2026
| Age | £30K Salary (60%) | £40K Salary (60%) | £50K Salary (60%) | £75K Salary (60%) |
|---|---|---|---|---|
| 25 | £14/mo | £18/mo | £22/mo | £32/mo |
| 30 | £17/mo | £22/mo | £27/mo | £40/mo |
| 35 | £22/mo | £29/mo | £36/mo | £52/mo |
| 40 | £30/mo | £40/mo | £50/mo | £72/mo |
| 45 | £42/mo | £55/mo | £69/mo | £100/mo |
| 50 | £58/mo | £76/mo | £95/mo | £140/mo |
| 55 | £82/mo | £108/mo | £134/mo | £198/mo |
Estimates based on Class 1 (office) occupation with 13-week waiting period. Manual occupations pay 40–100% more. Shorter waiting periods increase premiums by 30–50%.
Income Protection vs Other Cover
| Feature | Income Protection | Critical Illness | Life Insurance |
|---|---|---|---|
| Pays When | Cannot work (any illness/injury) | Diagnosed with listed condition | Death |
| Payout Type | Monthly income | Lump sum | Lump sum |
| Duration | Until recovery or retirement | One-off | One-off |
| Tax Treatment | Tax-free (if personal) | Tax-free | Tax-free (in trust) |
| Priority Ranking | 1st (most important) | 2nd | 3rd |
| Typical Cover | 50–70% of salary | £50K–£500K | £100K–£1M |
How Income Protection Works
1
You become unable to work
If illness or injury prevents you from doing your own occupation (or any occupation, depending on the policy definition), you make a claim with medical evidence.
2
The waiting period passes
No benefit is paid during the waiting period (4–52 weeks). This is when your employer's sick pay or savings bridge the gap.
3
Monthly benefit payments begin
The insurer pays your monthly benefit (50–70% of your gross salary) directly to you. If paid from personal premiums, this is completely tax-free.
4
Payments continue until recovery
Benefits are paid for as long as you are unable to work, up to your chosen retirement age (typically 65 or 68). You can claim multiple times throughout the policy.
Tip: Choose an “own occupation” definition policy rather than “any occupation”. Own occupation means you are covered if you cannot do your specific job. Any occupation means you are only covered if you cannot do any job at all, which is much harder to claim on.
Frequently Asked Questions
How much does income protection insurance cost per month in the UK?
Income protection premiums depend on your age, income, occupation, waiting period and coverage percentage. A 35-year-old office worker earning £40,000 with a 13-week waiting period and 60% cover would pay approximately £25–£40 per month. Manual workers pay more. Longer waiting periods significantly reduce premiums.
What percentage of my income does income protection cover?
Income protection typically covers 50–70% of your gross salary, with most policies capping at 60–65%. The benefit is usually paid tax-free if you pay the premiums yourself, which means the actual replacement rate is closer to 75–85% of your net take-home pay.
What is the waiting period and which should I choose?
The waiting period is the time between becoming unable to work and when benefits start paying. Common options are 4 weeks, 8 weeks, 13 weeks, 26 weeks or 52 weeks. Choose a waiting period that matches your employer's sick pay provision. If your employer pays full sick pay for 6 months, choose a 26-week waiting period to save on premiums.
Is income protection the same as critical illness cover?
No, they are different products. Income protection pays a monthly income if you cannot work due to any illness or injury, for as long as you are unable to work. Critical illness cover pays a one-off lump sum if you are diagnosed with a specific listed condition. Many advisers recommend income protection as the priority.
Do I need income protection if I have sick pay?
Statutory Sick Pay (SSP) is only £116.75 per week for up to 28 weeks. Many employers provide enhanced sick pay, but this typically ends after 3–6 months. Income protection continues paying until you can return to work or reach retirement age. It bridges the gap when employer sick pay runs out.
Is income protection tax-free?
If you pay for income protection personally (not through your employer), the benefit is paid tax-free. £2,000 per month tax-free is equivalent to approximately £2,500–£2,800 gross salary. If your employer pays the premiums, the benefit is treated as earned income and taxed through PAYE.
Official Sources & References
- FCA — Income Protection Insurance Guide
- Association of British Insurers (ABI) — Industry Data
- MoneyHelper — Income Protection Guide
- GOV.UK — Statutory Sick Pay Rates
Data verified against official UK government and industry sources. Last checked April 2026.