UK Income Protection Calculator
Calculate your monthly income protection benefit (up to 65% of gross), deferred period, and premium by occupation class, age, and smoker status.
Your Profile
Income Protection Benefit & Premium
Monthly Benefit
£2,292
Premium: £104.17/mo (2.5% of gross)
Annual Benefit
£27,500
Monthly Premium
£104.17
Annual Premium
£1,250
% of Income
2.5%
Why UK Income Protection (IP) is under-bought
State benefits for long-term illness are thin — Statutory Sick Pay covers only 28 weeks at ~£116/week. After that, Employment & Support Allowance runs just £97–£139/week. For most earners, that's a >70% income drop. Personal IP bridges the gap and pays a tax-free monthly benefit until you return to work, the term ends, or you reach State Pension Age.
Occupation class drives price
Class 1 (professionals, clerical) get the cheapest premium and the most permissive own-occupation definition. Class 4 (heavy manual — roofers, construction) pay 2–3× more and often get an any-occupation definition after 24 months. Always check whether your policy defines disability as own occupation, suited occupation, or any occupation.
Deferred period = your price lever
Longer deferred periods slash premiums. A 4-week deferred doubles the price of a 26-week one. Match the deferred period to your emergency fund plus any employer sick pay you'd receive. Most people with 6 months of expenses saved choose 13 or 26 weeks.
ASU vs IP — critical difference
Accident, Sickness & Unemployment (ASU) pays for 12–24 months only and has strict exclusions. True Income Protection pays as long as you're medically unfit to work, potentially decades. Mortgage lenders often push ASU at completion — always buy proper IP separately.
Common questions about Income Protection
Income Protection vs ASU — what is the difference?+
IP (Income Protection) is a long-term policy paying a tax-free monthly benefit if illness or injury stops you working, typically to retirement age, with own-occupation definitions and guaranteed premiums. ASU (Accident, Sickness & Unemployment) is short-term (12-24 months), any-occupation, often non-guaranteed, and typically sold with mortgages. For core financial protection, IP is far superior; ASU has its place only alongside a proper IP policy.
How much benefit can I insure?+
Insurers generally allow up to 55%-65% of gross earnings (the cap protects incentive to return to work). On a £60,000 salary that's roughly £33,000-£39,000/yr tax-free, equivalent to £45k-£55k gross. Pair with your employer's sick-pay entitlement and state benefits (£109/wk ESA) to model a realistic income floor during a claim.
What deferred period should I choose?+
The wait between becoming unable to work and the first benefit payment. 4 weeks is expensive; 13 weeks is a common default; 26 or 52 weeks cuts premiums sharply. Match the deferred period to your sick-pay entitlement + emergency savings — if your employer pays full sick pay for 6 months, a 26-week deferred period makes the policy markedly cheaper without materially worsening your cover.
Own-occupation vs any-occupation?+
Own-occupation (gold standard) pays if you cannot perform the duties of your specific job, even if you could do something else. Any-occupation pays only if you cannot do any job you are reasonably qualified for — much harder to claim on. Many cheap group policies flip from own to any-occupation after 12-24 months. Individual IP policies from Aviva, Vitality, Royal London, LV=, and The Exeter typically offer own-occupation for the full term.
Do I need IP if my employer offers Group Income Protection?+
Often yes, as a top-up. Group IP benefits are typically 50%-75% of salary, employer-owned, taxable (PAYE), and end immediately if you leave the job. A small individual policy layered on top gives tax-free, own-occupation, portable protection priced at today's (younger) age. Critical for anyone whose household relies on their salary.
Are IP benefits taxable in the UK?+
Individual IP policies paid for from after-tax income pay tax-free benefits — that's the core attraction. Group IP arranged by an employer pays through PAYE and is taxable. Executive Income Protection (company-owned, paid out of company profits as a P11D benefit) has its own rules — speak to an adviser to structure it properly.
What conditions typically trigger an IP claim?+
Top claim causes 2024-2025 (ABI data): mental health (30%+), musculoskeletal (25%), cancer (15%), cardiovascular, and accident-related injuries. Contrary to stereotypes, IP claims are overwhelmingly driven by long-term illness, not dramatic accidents. Pick insurers with strong mental-health claim track records (LV=, The Exeter, Royal London publish claim paid-rates above 95%).