Welcome to Income Protection Review the UK's leading income protection insurance comparison site...

We offer a wide range of income protection plans all under one roof. Using our unique comparison table you can easily compare in seconds pricing & terms from the UK's premier income protection providers.

Our panel of experts have reviewed all of the plans and rated them out of five stars to help you find the policy that is most suitable for your needs, not just the cheapest!

Income Protection Insurance Product Features

• You select the waiting period to suit your needs, ranging from 4 weeks to 2 years - back to day one cover available with some policies.
• Income protection Insurance provides an income commencing after a deferred period for a person who is unable to work due to sickness or illness.
• The plan has a fixed term, generally until retirement age to a maximum of age 70.
• The plan, when in place, is permanent. The monthly premiums cannot increase (unless a reviewable premium is chosen).
• There is a maximum insured income limit based on numerous factors.
• The benefits can be level or increase at a fixed amount.
• Premium rates are occupation based, with 4 classes, some providers operate on a different system which might benefit more high risk occupations
• Maximum income typically between 50 - 70% of your earned income.

Income Protection Insurance Policy Benefits

• Income is paid for the duration of your sickness or incapacity or/and until your selected end date (normally to your retirement date).
• If you recover then become ill again you can recommence your claim or if it is for a different incapacity, claims are not restricted to one event.
• Benefits paid for both short & long term illnesses and accidents, based on the chosen deferred period. The income protection insurance provider cannot cancel cover once you have been accepted. You can cancel, they cannot.
• Inflation protection can be provided by arranging an income protection insurance policy which increases in line with increases in RPI (retail prices index). This provides increasing cover to take into account rising future costs.
• Guaranteed & reviewable premiums are available with most insurance companies.

Income Protection Insurance Policy Limitations

• You may receive exclusion for any pre existing medical conditions.
• Some occupations or pre-existing illnesses may be excluded from cover.

Need for Income Protection Insurance

Income Protection Insurance can help you protect yours and your family's standard of living by providing a tax free monthly income should sickness or injury prevent you from doing your chosen job.

Why should I insure my earnings using an Income Protection Insurance Plan?

The chances of being unable to work due to an illness or accidental injury is greater than you may think: Of the 27.9 million people currently employed in Britain, over 2 million people have been claiming State Incapacity Benefit for 6 months or more.

State Benefits the solution? is Income Protection Insurance essential?

Those who do not qualify for Statutory Sick Pay (SSP) or OSP, e.g. the self-employed, may claim ESA directly. If you have made sufficient National Insurance contributions and claim ESA directly, you will enter a 13 week assessment period. During this you will be paid £47.95 per week if you are aged under 25 or £60.50 per week. if you are 25 or over. Unlike Incapacity Benefit, there are no additional payments where ill health occurs under age 45.

If you are employed and receiving Statutory Sick Pay or Occupational Sick Pay, you can apply for ESA after 15 weeks sickness absence (13 weeks before entitlement to SSP ends) to ensure no delay in your receipt of ESA. However, you will still need to serve the same assessment period at the benefit rate of £60.50 per week.

During your assessment period a doctor will establish your capability to work, your ability to engage in work-related activity and, if you are considered capable of work-related activity, an assessment will be made of any interventions that might improve your capability to work. If you fail to provide the information requested or fail to attend for examination if requested, your eligibility for benefit could be denied.

At the end of this 13 week period, if you are considered capable of work-related activity you will be allocated to a work-related benefit group, if not you will be allocated to a support benefit group. Estimates are that around 90% of new claimants are likely to be in the first group and 10% in the second.

In the work-related group:

• You will receive a benefit of £84.50 per week. (all age groups).
• This will be conditional on:
  • Attending a series of work-focused interviews.
  • Agreeing an action plan aimed at getting you back to work.
• Failure to observe these conditions could see your benefit reduced back to £60.50 per week. in two stages, depending upon for how long this continues.
• You are also under an obligation to follow medical advice about the treatment of your condition.

In the support group:

• You will receive a benefit of £89.50 per week (all age groups)
• No set conditions apply but you are free to seek work-related advice and support should you wish to do so.

If you have not made sufficient National Insurance contributions or you are in receipt of ESA via the contributory route but feel you have insufficient income to live on, you may apply for means tested support.

Means testing means that any regular income you or other family members receive including any earnings, Incapacity Benefit or ESA (but not Disability Living Allowance), and most insurance payments will be offset against the benefit you qualify for. In addition, those with capital of £16,000 or more are not eligible and the rates are reduced if you have between £6,000 and £16,000. However, the value of your home, the assets of any business you own or any personal pension fund do not count towards these capital limits.

For ESA claimants meeting the means tested criteria, benefits for single people in the work-related group are unchanged. However, if you have no other relevant income and are in the support group you will receive an additional £12.60 per week. If you are part of a couple, your benefit could rise to £118.95 per week. (work-related group) or £142.10 per week. (support group). There are also possible further increases if you or your partner is aged 60 or over, your disability is such that you qualify for Disability Living Allowance or you are entitled to a carer’s allowance.

Other benefits also available via the means tested route are:

• Council Tax Benefit - assistance with Council Tax payments.
• Housing Benefit - assistance to those living in rented accommodation.
• Mortgage Interest relief - a limited contribution towards your mortgage interest payments (normally after a 9 month waiting period).

Finally, if your state of health is such that you need the help of another person with personal care (washing, dressing, eating etc) or you have difficulty walking, you may also qualify for Disability Living Allowance.

What does this mean for me? Is Income Protection Insurance the right decision?

The new assessment test is being applied earlier in the claim period, is more comprehensive and covers not only what you cannot do but what you can do. There was a substantial failure rate under the old test but this is expected to rise to something like half of all claimants under the new criteria.

For most claimants, payment of benefit will be conditional on engaging in work-related activity. If you are an existing Incapacity Benefit claimant, the transfer process to ESA (including re-assessment under the new criteria) is expected to begin in 2009 (for those under age 25) and be completed in 2013.

Even with the support of means tested benefits the amounts available remain well below income levels that many consumers are accustomed to, emphasizing that if you do not insure, you are risking your capital and possibly your home.

Illness or disability can quickly drain your savings and investments and is a common cause of repossession of homes in the UK.

Why choose an Income Protection Insurance plan?

Income Protection Insurance plans, unlike many Payment Protection Insurance (PPI) plans you may have taken out with a loan or mortgage, allow you to select cover until your normal retirement date.

Furthermore, many PPI plans contain a wide number of exclusions including for stress or anxiety, one of the most common causes for claiming State Incapacity Benefit. Some income protection insurance plan’s contain very few, and in some cases no standard exclusion clauses.

What are the most frequent causes of claiming under an Income Protection insurance plan?

Income Protection insurance covers a wide range of critical and non-critical conditions that can prevent you from working. Here are a few of the most common causes of a claim:

• Mental illness (such as stress and depression)
• Musculoskeletal problems (problems of the muscles and bones, including back pain)
• Heart disease
• Cancer

Within our site you'll find a number of income protection plans from leading insurers. We carefully review the plans we sell to ensure they offer quality cover to meet the most demanding of needs. However, it is likely that your needs would result in one product being more suitable due to its features or your budget. With this in mind we have detailed the key features to look for in an income protection plan and their likely impact on you.

Income Protection Insurance - Definition of incapacity

Arguably the important feature - the incapacity definition is basically the test you must pass at claim to receive the income benefit from your plan.

The vast majority of plans offer an own occupation as standard. This means that you be assessed on your ability to undertake your occupation at claim. Ensuring you are insured against the occupation you have chosen rather than a similar occupation you are suited to - consider a teacher may be suited to work as an exam board examiner, would they however be fulfilled in this suited role?

Therefore we would always recommend an own occupation compared to a suited occupation policy.

Some lo-cost products may have an any occupation definition. You would then have to meet the demanding standard of being unable to conduct any occupation in the workforce.

Finally, if your occupation or medical history means that a typical income protection is unobtainable or unaffordable then all is not lost. You could consider a policy employing a definition based on a functional abilities test or activities of daily living. As the name suggests these policies are not occupation based, you will receive your income benefit if you fail a number of prescribed tests.

Income Protection Insurance - Deferment periods

Deferment periods, or the waiting period is basically the period of time you must wait until a claim can be made. For those in medical professions employed under a NHS contract your sick pay will be structured around your length of service. Therefore, your income protection insurance plans deferment period should automatically adjust to meet your sick pay provision. Ensuring you don't pay for income protection benefit you cannot claim for.

The Friends Provident income protection insurance plan is specially constructed to include a 'rolling' deferment period. It automatically adjusts your deferment period based on your length of service.

What is Income Protection?

Income Protection Plan is an insurance policy that offers continuity of income (up to a certain level - normally 50% - 70%) in the event of sickness or accident where an individual is unable to continue doing their normal occupation.<\p>

When selecting your income protection you will need to assess you own situation and tailor your plan accordingly, being careful not to pay for benefits you could never claim (you would not normally get a refund) but also ensuring that you have sufficient protection to meet your financial commitments.

Pay particular attention to your employer's sick pay arrangements, your income protection plan should follow on from where your employer's provision ends. Make sure you do not have Income Protection arrangements arranged on your behalf as you normally wouldn't be able to claim for both. Employers' income protection plans are sometimes referred to as "Group Income Protection" or "Permanent Heath Insurance".

A number of common terms associated with Income Protection plans are explained below:

• Deferred/Waiting Period - the time for which you must wait from the point of not being able to work due to illness or injury until a benefit would be payable under your Income Protection plan.
• Reviewable Premiums - premiums can change regularly in line with a number of factors experienced by your insurance company, such as claims cost. These are normally cheaper than guaranteed rates when purchasing your plan, however the price of your cover could increase or decrease over the course of the policy. Important: You may not be able to afford future premiums and may need to reduce cover or even cancel your policy due to the increasing cost.
• Guaranteed Premiums - your premiums are guaranteed for the duration of your policy. This offers the security of knowing your premiums, at the level of cover you purchased will remain the same for the life of the policy. If you choose an increasing option, your premiums will still increase in line with any additional cover you take.
• Increasing Options - you can choose to have your cover increase in line with the 'retail prices index' or a pre-determined amount. It is important to remember that your premiums will increase along with your cover, and there will remain a maximum benefit level for which your plan cannot exceed (for the UnumProvident IRP the maximum benefit level is £350,000).
• Retail Prices Index - a measure of the annual rate of inflation (change in the cost of living) in the United Kingdom by the British Government.
• Limited Benefit Terms - the ability to restrict the payment of any benefit payable under your plan to a fixed period normally 2, 3, or 5 years. This will have the benefit of reducing the cost of your premiums, you should consider the impact on your financial security should you suffer a long-term illness.
• Monthly Benefit Amount (£) - the amount of money you would receive if you suffered an illness or injury that prevented you from working. It is common to link this figure to increase with the Retail Prices Index so that your payments, if they continue for a long period of time, keep pace with inflation and retain their value.

When applying for your income protection insurance policy it is extremely important you do not misrepresent or withhold any information regarding your medical history or occupation. If you are unsure of the relevance of any information, include it on the application form anyway. Failure to truthfully or accurately disclose relevant information could result in any claim you make being denied.