The importance of income protection

Everyone is talking about income protection insurance! Why? Because it is one of the most comprehensive life insurance policies you can get. Let’s take a closer look at why this type of cover is so in-demand.

What does income protection cover?

Let’s get straight into the important bits - what does an income protection policy actually cover you for? Well, there’s a clue in the name - this policy is designed to protect your income if you were unable to work due to illness or injury. 

Start a free income protection quote


How does this policy pay-out?

In the event of a valid claim, an income protection policy pays out in smaller monthly payments, instead of one big lump sum, after your chosen deferred period.

This is so the policy acts as a replacement for some of your monthly income you would be missing out on if you were poorly and unable to work having been signed off by your GP.

How much cover can you get?

Income protection insurance works by covering a selected percentage of your income, therefore your policy will be unique to your income and circumstances.

Depending on the provider, you can usually cover between 50-70% of your earnings. The higher the percentage you cover, the more your monthly premium will cost but we can tailor this to suit your affordability.

If you’re curious about how much an income protection policy could cost you then you need to try out our new income protection calculator. You can find out a rough estimate of how much your policy could be in as little as 30 seconds.


Try our free calculator

What could you use the payments for?

Consider what you use your monthly income to pay for. Those who claim on their income protection policies typically use the pay-out to afford the fundamentals in life, such as:

  • The bills
  • Childcare costs
  • Food shops
  • Mortgage/rent payments


The above are just some of the things that this policy could help contribute towards. Think of this cover as a helping hand, there at a time when you need it most.

Who needs this cover?

Income protection is one of the most beneficial types of cover you can get and as a result is suited to all types of people! However, there are a few who could arguably benefit from it more than others.

Those who have a small amount of savings or no savings at all could especially benefit from this type of cover as the regular payments mean that you could stay on top of paying the bills and focus on getting better.

Although being self-employed does come with its perks, one of its downfalls is not having sick pay. With an income protection policy in place, if you work for yourself, you could still receive a regular income to help you pay your everyday financial commitments should you be signed off by your GP.

Why should I get income protection?

One of the most important aspects of income protection is the peace of mind it can give you. With this policy in place, you would be financially protected if you couldn’t work due to illness or injury, with payments starting after your chosen deferral period.

At Caspian, we get to know you and your circumstances so we can tailor an income protection policy to your affordability and lifestyle.

Start a free quote today


Advantages round-up

Here are some of the top reasons why income protection is one of the most important policies you can get:

  • This is one of the few types of life insurance policy which could financially protect you against mental illness. So if you were struggling with your mental health, for example, and were signed off by a doctor then you would be able to make a claim on your income protection policy, after your chosen deferral period.

  • Income protection’s small monthly payments set this type of cover apart from other kinds of life insurance. These monthly bursts of income are unique to you and what you earn.

  • Income protection is one of the few life insurance policies where it’s sole purpose is to pay-out whilst you are still alive. As a result, you can spend your time off work focusing on your recovery and not worrying about paying the bills.