Income Protection

in-come pro-tec-tion | in’CUM pro’tekSHon

Most of our plans, thoughts... dreams depend on our ability to generate the income to make them affordable. If that income is taken away - either by ill health, or redundancy - then all of these plans could coming crashing down.

What are the risks?

Quite naturally we all prefer to avoid thinking about ill health . . . particularly when we’re younger – it’s just never going to happen!

But serious accidents and ill health can and do happen to any of us at any stage of our lives.  How we cope with such a life changing event can be fundamental to the speed of our recovery and / or adapting to our new circumstances.  The emotions we experience may include feelings of disbelief, anger . . .  depression even.  But with support we can get to a stage of acceptance and start to look forward and re-set our plans.

The risk however is that during a lengthy period without pay the financial pressures of not being able to meet the everyday costs of living will lead to further worry & distress and with it, the risk of further & extended illness and absence from work – a vicious circle!

Whilst it could be argued that the loss of income through redundancy is significantly less traumatic than ill health, most of us facing such a situation would experience very similar emotional stages with financial worry being at the forefront of our minds.

For accident, sickness & unemployment insurance we offer products from a selected panel of providers

There are other providers of Payment Protection Insurance (Short Term Income Protection) and other products designed to protect you against loss of income. For impartial information about insurance, please visit the website at

The solution might include…

Having savings earmarked as an ‘emergency’ or ‘rainy’ day fund

Finding out what statutory sick pay arrangements our employer offers?

What other ‘income protection’ plans do they operate?

Consider taking out an income protection policy (often referred to as Permanent Health Insurance – PHI)

‘State benefits provided by the Department for Work & Pensions (DWP) do help – but the levels of benefits generally can’t be relied on.

Do I really need to protect my mortgage payments in the event of redundancy?

Things to consider…

. . . even if you’d prefer not to . . .

According to data released by leading insurer, Aviva:

£2.3 million was paid every day to life, critical illness and income protection customers and their families in 2015 – that’s £1,600 every minute!

The average sum paid to critical illness customers was £74,275.

The average age of Aviva critical illness customers claiming was 45 years for women and 49 years for men.

Cancer remains the most common cause of critical illness claims at 63% of all claims, followed by heart attack (10%). stroke (6%), multiple sclerosis (4%) and total permanent disability (4%).

Source: Based on Aviva data as at 25th April 2016.  Claims experience for Aviva and Friends Life in 2015.

Our top tip...

  • Insurers pay out £13.9m per day in income protection, critical illness cover and life assurance
  • 97.8% of claims made across group and individual protection are paid
  • £340 million increase year-on-year

Source ABI – 30th April 2018

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