How much does income protection insurance cost in the UK?
Find out what income protection insurance costs per month in the UK, with example average prices by age, job, and cover length, and what affects your premium.
Thinking of taking out income protection insurance?
Find out how much it will cost and what will affect the price of your premiums.
Income protection insurance offers a replacement salary if you cannot work due to illness or disability.
Cover starts at between £5 and £10 a month, but the price you will need to pay for income protection will depend on many factors.
A qualified insurance broker can help you find the right policy for you.
What is income protection insurance?
Income protection insurance provides a replacement 'salary' when you cannot work due to illness or disability.
Unlike critical illness insurance, which pays a lump sum, income protection insurance pays between 50% and 70% of your income, usually every month, until you are well enough to return to work or your cover ends.
Some policies are short-term and will pay out for a maximum of one to five years, while others are long-term and can continue until you reach retirement age.
The best income protection policies will pay out when you can’t do your specific job, while others will only pay out if you can’t work at all.
‘Own occupation’ policies are usually the preferred choice, but they are more expensive.
Learn more: Income protection vs critical illness: what's the difference?
What affects the cost of income protection insurance?
There are a range of factors that can affect the cost of your income protection insurance:
Your job
If you choose a policy that pays out if you can no longer work in your current role or field, your premium will be higher than it would be if you were only covering not being able to work at all.
Policies will also be more expensive if your job carries a higher risk of injury or accident.
The length of your policy
The longer the potential payout period on your policy, the more expensive it’s likely to be.
This is why policies that only pay out for one or two years are the most affordable.
The length of your deferred period
This is the time you will need to wait before you can make a claim after you have stopped working.
The longer you can manage before payments start, the cheaper your insurance will be.
Your age
The older you are, the more you’ll pay.
As with health insurance, the risk of illness and the chance of needing to claim increase with age.
Your health
The healthier you are, the less you usually pay, just as with health insurance.
Your hobbies and lifestyle
Any risky hobbies or lifestyle factors can increase costs.
How much does income protection cost per month in the UK?
Narrowing down the cost of income protection insurance isn’t easy.
What you pay is affected by many factors, from the level of coverage to your health and lifestyle.
Cover starts at between £5 and £10 a month, but the price you will need to pay for income protection will depend on many factors. It may be significantly more expensive.
So, for example:
How much does income protection cost by age?
A 30 year old can expect to pay around £17.52 a month to get a replacement income of £1,500 a month, according to the broker, I am Insured.
That rises to £27.76 at age 40 and shoots up to £62.01 by age 50.
That’s based on a policy with a one-month deferral period.
How does the length of cover affect income protection cost?
Policies will be significantly cheaper if they only pay out for one or two years, rather than providing income for as long as it takes to get back to work or retire.
According to insurance broker Reassured, a 35-year old looking for cover worth £30,000 a year, would pay just £6.88 a month with a policy that will pay out for a maximum of a year. If they wanted long-term cover, with the potential to pay out until age 65, the cost would rise to £14.98.
How does your occupation affect income protection cost?
The riskier your job - and the more likely you are to have an accident - the more expensive your income protection premiums will be.
So, if you work in a manual job, at a height, with heavy machinery or in any other hazardous environment, you’ll pay significantly more than someone who works from home or commutes to an office.
Eleos says cover will start at £5-£20 for younger workers and those in low-risk jobs, rising to £40 or more for people who are older or in higher-risk professions.
How does the deferred period change the cost of income protection?
According to I am insured a 40-year old would pay £27.76 for £1,500 of monthly replacement income on a policy with a one-month deferred period. That compares to £17.16 if they are prepared to wait for six months.
Some people will choose a longer deferral period to keep costs down, or if their employer has a generous sick pay policy.
Finding the best income protection policy
Finding the best income protection policy involves some research to make sure you choose the right one for you. However, an insurance broker can help you find the right policy.
Below are a few of the highest-rated income insurance providers and their payout rates.
Income protection insurance provider | % average payout in 2025 |
|---|---|
Shepherds Friendly Society | 97% |
LV | 88% |
Aviva | 90% |
Royal London | 85.2% |
Each provider will typically offer its own choice of deferred periods, payment periods and maximum income percentages, so it’s worth shopping around and considering what will best suit you.
When you’re looking for affordable income protection cover:
Act as soon as possible - costs will only increase with age.
If you’re employed, find out what sick pay you’re entitled to - get your cover to begin once your sick pay ends.
Be open and honest when answering questions about your health - omitting important information may mean a claim isn’t paid.
Think about whether you are comfortable with you prefer reviewable or guaranteed premiums.
Talk to an insurance broker who can help you find the best cover for your budget.
Learn more: The benefits of using an insurance broker
Is income protection insurance worth it?
The Financial Conduct Authority’s Financial Lives Survey (2024) found that only around 6% of people in the UK have income protection insurance.
Only you can determine whether this insurance is worth the monthly expense. However, before you make a decision, it’s worth thinking about how you would pay the bills if you were off sick for an extended period of time.
It may be particularly important if you are self-employed and not entitled to sick pay.
Get expert financial and insurance advice
It can be difficult and take time to find the right income protection policy that suits your own personal circumstances.
If you’re struggling to decide and need advice, Unbiased can connect you with a qualified insurance broker who can help you make the right choice for you and your family.
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