How much does income protection insurance cost?

6 min Read Published: 22 Mar 2020

How much does income protection insurance cost?

How much does income protection insurance cost?The cost of income protection insurance depends on a number of factors such as age and the level of cover chosen amongst others. It is important, therefore, to compare income protection insurance cover across a number insurers to make sure you are getting the best deal.

What factors influence the cost of income protection insurance?

Amount of cover

Income protection insurance benefits can be up to 70% of your gross income, but lower amounts can be covered. The minimum that should be covered is the amount of your basic bills such as mortgage, food and utility bills. The lower the amount of cover you have the lower the monthly premiums.

What is covered

Income protection insurance can cover sickness, accident and redundancy or any combination of these three. The extent of cover will be reflected in the cost of your monthly premiums and in the choice of insurer as some do not offer redundancy insurance.

When income payments commence

With all income protection insurance policies there is a deferred period built in. The deferred period is the period between first being off work and when the benefit begins. This is typically between one month and three months but can be longer. The longer the deferred period on an income protection insurance policy the lower the premium.

Guaranteed premiums

The premiums on a standard income protection policy can be increased by the insurer over time. The insured can, however have premiums guaranteed at the outset so they will not increase over time. This premium guarantee will mean that the cost of the monthly premiums will not increase from those agreed at the outset of the policy.

Medical history

If you have a history of health issues your premiums are likely to be higher to reflect the increased risk of you being off work. When you apply for income protection insurance you will be required to a complete a health questionnaire which will be used to set the premiums on your policy.

Age

The older you are the higher the income protection premiums will be as you are more likely to be off work sick than a younger person.

Occupation

Some occupations are riskier than others with regards to illness or accidents and this will be reflected in the income protection premiums.

How much can I expect to pay for income protection insurance?

The cost of income protection insurance will vary from company to company but I have shown below some examples to give an idea of the likely monthly cost.

Male aged 30 - around £30pm for £1,500 a month cover deferred for 4 weeks payable to age 65

Male aged 40 - around £35pm for £1,500 a month cover deferred for 4 weeks payable to age 65

Male aged 50 - around £50pm for £1,500 a month cover deferred for 4 weeks payable to age 65

The above rates are a general guide and based on someone working in a clerical position and a non-smoker. Costs vary for the reasons stated above. To get a personal quote I strongly recommend using the service detailed below.

How to find the best and cheapest income protection insurance policy

The best way to compare income protection insurance quotes is by speaking to an independent income protection specialist as they will be able to access every quote on the market and so can advise on the best possible policy for your own unique circumstances.

I have personally vetted the service of one of the UK's leading independent income protection specialists*, which specialises in searching the whole market in order to find the most suitable income protection cover

There is no obligation to take things further, simply complete the form via the link below and if you do decide to take out a policy, you will qualify for £50 cashback.

Find the best value income protection policy for you*

Complete the short form and get a callback from an Income protection specialist

Find the best value income protection policy*

 

Further reading

 

If a link has an * beside it this means that it is an affiliated link. If you go via the link, Money to the Masses may receive a small fee which helps keep Money to the Masses free to use. The following link can be used if you do not wish to help Money to the Masses and do not wish to qualify for the cashback referred to in the article – LifeSearch