freephone 0800 862 0390
Sign in to view your quotes
Email address:
Password or PIN:

Forgotten your password? Reset it here.
please wait ...

Income Protection - Frequently Asked Questions

Income protection is designed to replace your income should you be unable to work due to illness, accidental injury or redundancy.

Why should I invest in Income Protection?

Having Income Protection means you will not need to use your savings or rely on state benefits if you are unable to work through sickness or accidental injury. Ask yourself the following questions:

  • Would state benefits of up to £101.15 a week* allow me to maintain my current lifestyle?
  • Could I live off my partner’s income indefinitely?
  • Do I have savings I could live off indefinitely?

If the answer is no to the above, then you should probably consider Income Protection. An Income Protection Policy will provide you with a regular tax free benefit to give you time to get back on your feet after an accident or an illness.

Some Income Protection policies will also replace your income if you are made redundant. There are currently more than 800,000 people in the UK who have been out of work for more than one year following redundancy, according to the Office of National Statistics. An Income Protection policy will give you the financial support you need when looking for a new job.

For how long will Income Protection pay in the event of incapacity?

The benefit period is the length of time that your policy will pay you for if you are unable to work through illness or accidental injury. There are two main types of Income Protection: long term and short term.

Long term Income Protection

Otherwise known as permanent health insurance (PHI), Long Term Income Protection is designed to replace your gross monthly income right up until retirement age should you be unable to work due to illness or injury.

Short term Income Protection

Otherwise known as Accident, Sickness and Unemployment (ASU), short term IP replaces your income for up to 12 months should you be unable to work due to accident, sickness or forced unemployment. Accident, Sickness and Unemployment can be used to cover your general lifestyle costs, or it can be tied to a particular debt.

Do I get any money back if I don’t claim before the end of the policy?

You will not get your money back if you do not claim before the end of your Income Protection policy.

Is my benefit tax-free?

Yes, Income Protection Insurance will pay you a monthly tax free benefit to replace your income.

How much will Income Protection cost me?

The price of Income protection can vary hugely depending on the type of policy you choose. The premiums are calculated based on the amount of cover you require, the length of cover you require, your age, your smoker status, and sometimes even your current health and your occupation.

What exclusions might my Income Protection policy have?

A typical short term Accident, Sickness and Unemployment (ASU) policy will exclude you for the following:

  • Dangerous sports or occupations
  • Deliberate self-injury
  • Any pre-existing medical condition related to stress, back problems or normal pregnancy
  • AIDS related conditions
  • Conditions due to drug and/or alcohol abuse, or criminal activity

If your policy also includes unemployment cover, you will not be protected if you:

  • Knew or had reason to believe you might become unemployed
  • If your work is temporary or seasonal, or you accept voluntary unemployment
  • Become unemployed within the initial exclusion period.

All long term Income Protection policies will need to be medically underwritten, so pre-existing conditions may be excluded from the cover. A full list of exclusions will be provided with your policy.

Why should I compare Income Protection with ActiveQuote?

At ActiveQuote we understand that choosing an Income Protection policy can be a daunting task. That’s why our online comparison system will compare long and short term IP policies to help you find a quote that suit your needs and your budget. We compare Income Protection policies from all the leading UK insurers, and allow you to change your options online with instant updates to the price.

If you are struggling to decide on an Income Protection policy, an ActiveQuote advisor is always on hand with free, no obligation advice. For more information about us, take a look at our About ActiveQuote page.


* People suffering long term sickness can apply for employment support allowance (ESA) of up to £101.15 a week

Income Protection Insurance Guide, FAQs | Income Protection | ActiveQuoteGot a question about income protection insurance? We answer the frequently asked questions about income protection cover to help you find a policy within your budget.    tweet it on twittershare with your friends on Facebookshare with your friends on MySpaceBlog it on your LinkedIn profile

No.1 income protection broker as rated by customers

Proactive, efficient, and offered me insurance I need. I would say half price I would end up paying if I did it by myself. Many thanks.

Review centre member

Excellent service. Explained everything in detail and really helped to find the right insurance best suited to my needs - which wasn't necessarily the most expensive. 

Review centre member

Good value and the advisor was very helpful and recommended the best policy for my grandson. I would definitely use this service again and recommend to others.

Review centre member

We were contacted in good time to make a knowledgable choice. We were given plenty of options with lots of information to enable us to make the right choice.

Review centre member

The service I received was excellent, the staff member was very efficient and knowledgable. She went out of her way to get the best policy for me.

Review centre member

Great service. I really appreciated the help provided by Active Quote to arrange health insurance. The agent was very informative and proactive. Many thanks!

Review centre member

I received excellent care and attention from the first phone call till the last. Friendly, efficient and patient.

Review centre member

Staff are very helpful, friendly and polite. They call back when they say they will and keep you up to date with progress. Pleasure to deal with.

Review centre member

Very polite and friendly, and gave detailed explanations of all aspects of the cover. Reassuring to know that if you do have a problem there is someone you can contact.

Review centre member

Friendly and efficient. Nothing was too much trouble even when i needed to make a small change, excellent service.

Review centre member

Sign up to special offers

Sign-up for our FREE email newsletter to receive the latest offers tailored to your needs:


This site uses cookies in order to work correctly - these are not harmful and do not contain personal information. By using this site you consent to this. I understand  Tell me more

This site is operated by Insurance Broker ActiveQuote Ltd registered in England & Wales company number 6765845.
Authorised and Regulated by the Financial Conduct Authority (FCA). Firm reference number 501109 as detailed on the Financial Services Register. Please read our Key Facts document.
For information about your rights as a consumer visit Citizens Advice.

Our insurance comparison service is free and easy for you to use, but you are responsible for making sure all your information is entered correctly, and for choosing your insurer.