Income protection insurance pays a percentage of your income if you're unable to work due to illness or injury.
How It Works
Income Protection Insurance is an important concept in the UK financial services landscape. Understanding how it works is essential for brokers and advisers who want to serve their clients effectively and identify opportunities within their practice.
For consumers, this typically involves engaging with a qualified financial adviser who can assess their specific situation and recommend appropriate products or solutions. The adviser's role is to ensure the consumer understands their options, the costs involved, and any risks associated with their decision.
Why It Matters for Advisers
For financial advisers and mortgage brokers, understanding this area creates opportunities to serve clients more comprehensively. Many consumers have needs across multiple product areas, and advisers who can address a broader range of requirements build stronger, longer-lasting client relationships.
If you're looking to expand your client base in this area, consider investing in specialist leads that connect you with consumers actively seeking this type of advice. For more information on lead types and pricing, visit our pricing page.
In practice: A 40-year-old self-employed consultant earning £70,000 takes out income protection paying £3,500/month (60% of gross income) after a 3-month deferred period, covering until retirement at 65. The premium is around £85/month. If she's diagnosed with cancer at age 45 and can't work, the policy pays £3,500/month tax-free for up to 20 years — potentially £840,000+ in total benefit.
Why it matters for brokers: Income protection is one of the most undersold protection products in the UK — fewer than 10% of working-age adults have cover. Every mortgage case is a natural conversation starter because if the client can't work, they can't pay the mortgage. Income protection leads convert well when paired with genuine affordability advice rather than a hard sell.