Anorak is authorised and regulated by the Financial Conduct Authority
We’re an independent online broker for life insurance, income protection and critical illness cover
Let’s start with the basics
What is income protection?
An insurance policy that pays a monthly amount if you can’t work for any medical reason. It replaces part of your missing income, so you can always cover the essentials.
Yes – it covers you if you can’t work for any medical reason. If you’re signed off work by a medical professional, you’ll be able to claim on your policy.
No – it doesn’t cover any loss of income that isn't caused by illness or injury. You can only claim if you’re signed off work by a medical professional.
It depends how much cover you buy, how quickly you need it to start paying out, and how much of a risk you are to insure (based on your age, health and lifestyle).
Directly with your insurer, providing whatever documentation’s required (usually the relevant medical notes). It’s a good idea to claim as soon as you can after becoming unfit to work.
Yes, if you meet your insurer’s ‘definition of incapacity’ – in other words, their criteria for being unfit to work. You can read this definition in the policy documents before you buy.
Income protection pays out monthly – so money’s coming in even if you can’t work
Being too ill to work doesn’t mean there won’t be bills to pay. Sick pay or savings might tide you over to start with – but beyond that is where income protection comes in. It can replace part of your missing income, so you have peace of mind that you’ll always be able to pay the bills. Here’s a few income protection features it’s useful to know:
Full-term cover
Pays out for as long as you need – until you go back to work, retire, or your policy ends. For complete peace of mind that you’d always have money coming in.
Short-term cover
Pays out for a maximum payment period (usually 1, 2 or 5 years). Cheaper than full-term cover, but bear in mind it stops paying after that time – even if you still can’t work.
The ‘waiting’ period
How long you wait before your policy starts paying out. The longer your waiting period, the cheaper your premiums (but you’d need to be able to tide yourself over in that time).
What do people claim for?
Income protection covers you for any medical reason if you’re signed off work by a healthcare professional. Common conditions claimed for include:
Musculoskeletal injuries or conditions
Like broken bones or back pain
Mental health conditions
Like stress, anxiety or depression
Other serious illnesses
Like cancer, heart attack or stroke
Who needs income protection?
Most people. Because most of us would need a financial safety net if we were too ill to work.
Couples
As partners, you’re likely to have shared financial commitments. Income protection means you could keep up with bills and expenses if one of you couldn’t work.
Bringing up children is expensive. Could your family cope without your income? Income protection is a way of making sure they could, even if you couldn’t work.
It’s often your biggest monthly outgoing, but you might not be able to pay the rent if you were too ill or injured to work. Income protection makes sure you could.
As partners, you’re likely to have shared financial commitments. Income protection means you could keep up with bills and expenses if one of you couldn’t work.
Parents
Bringing up children is expensive. Could your family cope without your income? Income protection is a way of making sure they could, even if you couldn’t work.
Single parents
If you were too ill to work, you’d want to know your children would continue to be provided for. Income protection is a way of doing just that.
Self-employed
If you’re self-employed, you won’t have any employer sick pay – so it’s important to have an alternative plan in place for you and your loved ones.
Homeowners
Having your home repossessed is a very real risk if you can’t keep up with your mortgage payments. Having income protection helps make sure you can.
Renters
It’s often your biggest monthly outgoing, but you might not be able to pay the rent if you were too ill or injured to work. Income protection makes sure you could.
Got it – but how much cover do I need?
We work it out for you
Our quick assessment tells us all we need to know to recommend the right amount of cover based on your unique needs. We work with you to make sure you choose a sufficient level of cover – without paying more in premiums than you need to.