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Cars, homes and pets get insured more often than the income that pays for all of them.
Only 1 in 11 UK adults holds income protection insurance, according to Drewberry’s 2025 survey. Over a third of UK adults (36%) have no personal protection of any kind. 41% believe they are adequately protected financially. Of the rest, 37% know they are underinsured, while 23% simply have no idea either way. A third of individual income protection claims in 2025 were for musculoskeletal conditions, according to the ABI. Back injuries and joint problems are everyday reasons claims are made, not the dramatic diagnoses people picture. Statutory Sick Pay is £118.75 a week for up to 28 weeks. It does not apply to the self-employed at all.
| Source of income | Who it covers | How long it lasts | Typical amount |
|---|---|---|---|
| Employer sick pay (contractual) | Employees, varies hugely by employer | Often reduces after a set period, then stops | Full pay, then often half pay, then nothing |
| Statutory Sick Pay | Employees only, not self-employed | Up to 28 weeks | £118.75 per week (2025/26), reviewed annually by DWP |
| Income protection insurance | Employees and self-employed | Until return to work, or a chosen end date, sometimes to retirement age | Typically 50 to 65% of gross income |
| Universal Credit and ESA | Anyone meeting eligibility criteria | Ongoing, means-tested | Considerably below most people's outgoings, means-testing includes household savings |
| Savings | Anyone with savings | Until they run out | Whatever is left, minus every other bill still due |
Most people cannot answer that question with any certainty. Here are four situations where income protection is the only thing standing between a temporary setback and a long-term financial problem.
Week one, you manage. Week three, the invoices that would have gone out are not going out. Week six, you are behind on the mortgage. Week twelve, savings are gone. Statutory Sick Pay does not exist for the self-employed. Neither does employer sick pay. The only thing that would have paid a regular income from month two onward was income protection, and it needed to be in place before week one, not after.
The mortgage was calculated on what you earn. The problem is that the mortgage did not agree to shrink if your income stopped. If you were to develop a long-term condition at 42 and could not return to your specific role, the household’s financial position changes straight away and possibly permanently. A policy paying 60% of your gross income from month four onward is what keeps the mortgage paid and the household intact.
Six months of sick pay protects you for six months. A third of income protection claims in 2025 lasted longer than two years, according to ABI data. Musculoskeletal problems, the most common cause of claims, frequently involve surgery, rehabilitation, and return-to-work timelines measured in quarters, not weeks. Six months of sick pay is generous where it exists. The question is what the plan is in month seven.
NHS sick pay is typically six months at full pay followed by six months at half pay. Half pay for an NHS Band 5 nurse is approximately £1,250 a month. The average London mortgage payment is currently around £1,800 a month. A gap of £550 a month in month seven of an absence, with no income protection in place, is not a theoretical risk. It is a predictable one.
Speak to an adviser to discuss your circumstances and find out how we can help.
A 38-year-old paramedic injures her back lifting a patient. She cannot return to work for eight months. NHS sick pay covers the first six months at full pay, then drops to half pay. From month seven, she is receiving approximately £1,250 a month. Her mortgage payment is £1,450. The gap is £200 a month, which is manageable for one month. By month eight, it has become £400 in arrears, and recovery is not happening on the timeline her mortgage lender cares about.
Same injury. Same job. Same sick pay structure. An income protection policy with a six-month deferred period, matched exactly to when NHS half pay begins, kicks in at month seven and pays 55% of gross salary, approximately £1,800 a month, until she is cleared to return to full duties. The mortgage is paid every month of her absence. Recovery happens on medical timescales rather than financial ones. The policy cost her £27 a month.
Clear,honest answers to the questions we hear most from clients and introducers.
The premium for a 35-year-old self-employed person buying income protection with a four-week deferred period and a benefit to retirement age typically starts around £30 to £60 a month, depending on occupation and income. For comparison, Statutory Sick Pay for employees is £118.75 a week for up to 28 weeks. For the self-employed, there is nothing. The cost of the policy tends to look different when the alternative is months of zero income.
NHS sick pay is typically six months at full pay followed by six months at half pay. NHS Band 5 half pay is approximately £1,250 a month. The average London mortgage payment is currently around £1,800 a month. A gap of £550 a month from month seven is a predictable problem, not a theoretical one. Income protection with a six-month deferred period is designed precisely for this.
Six months of sick pay covers six months. A third of income protection claims in 2025 lasted longer than two years, according to ABI data. Musculoskeletal conditions, the most common cause of claims, frequently involve surgery, rehabilitation, and return-to-work timelines measured in quarters. Six months of sick pay is a start, not a plan.
Most income protection policies cover between 50% and 65% of gross income. The practical test is simpler: work out your essential monthly outgoings—mortgage, utilities, food, and childcare. That is the floor. Whatever your income protection needs to cover to keep your household running is the amount worth insuring. A broker can help you work out the right benefit level and deferred period based on your actual situation.
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