Income Protection

Receive up to 60% of your salary tax-free if you are unable to work through sickness or accident. 

Income Protection

What is Income Protection Insurance? 

Income Protection Insurance (also sometimes known as permanent health insurance) is an insurance policy that is designed to cover you if you are unable to work because of an injury or illness. It ensures that you continue to receive a regular income until you retire, or go back to work.

With Income Protection Insurance, everything depends on getting the right policy – so it’s best to get advice from an independent insurance broker. Don’t believe us? Have a look at what the Money Advice Service says.

At MIAB we are able to research a broad panel of insurers to make sure we find you the most suitable product to match your requirements.

Income Protection is not to be confused with Critical Illness Cover, which pays out a one-off tax-free lump-sum if you have a specific serious illness.

Who needs Income Protection Insurance?

If you have bills to pay, you should consider Income Protection.

You’re most likely to need it if you’re self-employed, but anyone who is employed should consider Income Protection, especially if you don’t have sick pay to fall back on.

Why do you need it?

According to the ABI (Association of British Insurers), each year a million people in the UK find themselves unable to work due to a serious illness or injury.

  • Income Protection Insurance replaces part of your income if you can’t work because of illness or injury.
  • It pays out until you can start working again, or until you retire, die, or at the end of the policy – whichever comes first.
  • It covers most illnesses that would leave you unable to work, either in the short or long term, depending on the type of policy and its definition of incapacity.
  • You can claim as many times as you need to as long as the policy is in force.

Protecting your income  

Being unable to work can have many serious effects, not least a loss of income.

Income Protection insurance pays up to 60% of your gross salary as a tax-free amount if you are unable to work through sickness or accident. If your business has Locum or Practice Expenses Insurance then Income Protection is designed to follow-on from the expiry of the benefit period, or sooner if no other plan is in place. It is often used in conjunction with a Critical Illness policy.

Peace of mind

Income Protection provides a regular income, giving peace of mind to you and your family at a difficult time.

A long-term policy provides a tax-free payment which is paid until expiry of plan (usually age of retirement). If you return to work in a reduced capacity, the policy could continue to pay out at a reduced level.

Fixed-term plans will still provide you with a tax-free payment, however this will be paid out normally for a duration of two years.

As long as the premiums are maintained, cover is guaranteed for the duration of the plan, meaning you can claim as many times as required. 

There’s often a waiting period before the payment starts, as you generally set payments to start once your sick pay ends, or after any other insurance stops covering you. The longer you wait, the lower your premiums will be.

Difference between Long-Term and Fixed-Term Income Protection Insurance



Will pay out a monthly sum related to your income until you either return to work, retire, die or the policy expires – whichever comes first.

Will pay out a monthly sum related to your income for a limited amount of time (usually one or two years) per claim. Due to the shorter length of cover, this usually means premiums will be cheaper.

Our expert adviser will help you choose the most suitable policy

We will discuss with you the factors you need to consider:

  • We do not charge any upfront fees for our services
  • The income to be covered
  • Costs that need to be covered, such as household bills, living expenses, mortgage payments, education fees, debts and loans
  • The deferred period (the amount of time that must pass between your first day off work and when you start to receive payments)
  • Cover for a specific length of time 
  • Adding Life InsuranceCritical Illness Cover and other personal protection products

For your free, no obligation review or quotation, contact our Specialist Insurance Adviser, Paula Storey on 01438 730211 or

Or get an 

Paula Storey, Income Protection Adviser