Have you considered how you would cope if you no longer had your income? How would it affect your plans and your dreams? Income protection insurance is a type of insurance that pays out a monthly benefit if you are unable to work due to illness or injury. It can help you to cover your essential living expenses, such as mortgage payments, rent, and bills, while you are unable to work.

The figures from the Association of British Insurers show £6.85bn was paid out to both group and individual income protection claims in 2022.

Here is how income protection insurance works:
  1. You choose a policy that pays out a certain percentage of your income, typically between 50% and 70%.
  2. You pay a monthly premium for the policy.
  3. If you are unable to work due to illness or injury, you can make a claim on the policy and start receiving the monthly benefit after an agreed period.

​The benefit payments will usually continue until you are able to return to work, or until you reach a certain age, such as 67.
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There are a few things to keep in mind about income protection insurance:
  • The premiums can be expensive, so it is important to shop around and compare policies.
  • You will need to undergo a medical assessment before you can take out a policy.
  • The policy will have a waiting period, which is the amount of time you need to be unable to work before you can make a claim.
  • The policy may have exclusions, such as pre-existing conditions.

Some people are sceptical about whether insurance companies will really pay out. This is why we recommend quality companies that have a good track record for claims and have contracts with fewer limitations. Below are some examples of claims.
It is important to remeber that certain insurance companies provide additional benefits over above the financial payments that can be very helpful during a period of need. As ARM Associates is an Independent Financial Adviser company, we can advise you after comparing different companies. Please, see the examples below.
Alia’s Story
Alia’s story is a powerful example of the life changing impact that income protection can have and the importance of the rehabilitation support services that many insurers now offer. There is much to take away from this story and we hope advisers will use this and other examples in their conversations with clients, to highlight just how important income protection insurance is.


This is an example and does not constitute a recommendation or advice.


Here is another example with a 30 year accountant earning £50,000p.a. and the risks of income protection. Below is a report that shows the risk and what income protection can do to reduce the risk for you. This is an example and does not constitute a recommendation or advice.
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The value of investments are not guaranteed and can fall as well as rise.