Income Protection Calculator
Our income protection calculator estimates the monthly premium for an insurance policy that replaces your income if you cannot work due to illness or injury. Income protection is one of the most under-owned but important insurance products in the UK.
Income Protection Calculator
Calculate how much income protection insurance you need if illness or injury stops you from working.
Estimates are indicative. Income protection premiums vary by insurer — always compare FCA-regulated policies.
Why Income Protection Matters
Statutory Sick Pay of £123.25 per week (approximately £534 per month) is the only income most employees receive after employer sick pay ends. For someone earning £40,000 per year (£2,550 per month after tax), a drop to SSP represents a 79% income reduction. Income protection fills this gap with a monthly tax-free benefit, typically 50–70% of your pre-illness gross earnings, for as long as you remain unable to work. Use our Income Replacement Calculator to quantify your specific monthly shortfall, and our Critical Illness Calculator to compare the lump-sum alternative.
Choosing the Right Deferred Period
The deferred period is the gap between you becoming unable to work and the policy starting to pay. Choosing the right length is the single most important decision in income protection design. A 4-week deferral is the most expensive option and is only worth it if your employer sick pay ends very quickly or you have minimal savings. A 13-week deferral aligns with the typical 3-month employer sick pay period and is the most popular choice. A 26-week deferral (6 months) significantly reduces premiums and is suitable if you have a 6-month sick pay period at work or substantial savings to bridge the gap. A 52-week deferral is the cheapest option and suits those with substantial savings, significant employer sick pay, or who want to use their emergency fund for shorter absences.
Frequently Asked Questions
A 35-year-old office worker covering £2,000 per month with a 13-week deferred period and a policy term to age 65 typically pays £25–£50 per month.
Own-occupation pays if you cannot do YOUR specific job — the most valuable definition. Any-occupation pays only if you cannot do ANY job. Always choose own-occupation where possible.
Benefits from a personally-owned income protection policy are paid tax-free. Benefits from employer-paid group income protection schemes are taxable as employment income.
Insurers classify occupations into classes (typically 1–4). Office workers are low risk; manual workers are higher risk and pay higher premiums or face exclusions.
Yes — income protection is particularly important for self-employed workers who have no employer sick pay at all. Benefits are typically based on a percentage of your last declared net profit.
Enter your monthly gross salary. Income protection pays a percentage of your pre-incapacity earnings — typically 50-70%, with 60% being the most common. The deferred period is the waiting time before the policy pays: four weeks, 13 weeks, 26 weeks, or 52 weeks. Aligning the deferred period with your employer’s sick pay period means the policy starts exactly when your employer sick pay ends, avoiding overlap. Age significantly affects premium — the earlier you take out cover, the lower the rate for the chosen level of benefit. Benefit is paid tax-free if you personally pay the premiums. Compare the monthly cost against the consequence of being unable to work for six months, one year, or longer — the risk assessment tends to support the cost of cover for most employed workers with dependants.
Important Information
This calculator is provided for general information and planning purposes only. It does not constitute financial or tax advice and should not be relied upon as such. Figures are indicative estimates based on simplified, publicly available criteria and stated assumptions. Actual results depend on your full circumstances. See our Disclaimer for further information.