Essential expenses · Lost income · Sick pay · Statutory benefits · Pence-precision maths
This calculator estimates income protection cover needs based on transparent rules of thumb. It's a starting point — not personalised financial advice. For advice tailored to your circumstances, consult an FCA-regulated financial adviser.
Estimate based on your inputs. Not a quote, not a recommendation, not regulated advice.
Step 1 — Income
Estimated monthly net: £2,993
Assumes 1257L tax code, England/Wales/NI bands, no pension or student loan deductions. For a take-home figure based on your specific situation, see our UK Take-home Pay Calculator.
Step 2 — Essential monthly outgoings
These must continue if you can't work. Discretionary spending (holidays, hobbies) is excluded.
Total essential monthly outgoings: £2,700
Step 3 — Existing protections
Statutory minimum is 28 weeks of SSP (£123.25/week in 2026/27). Many employers offer 1–12 months full pay before reverting to SSP.
At £2,700/month, these would last about 1.9 months.
Step 4 — Cover preferences
Longer deferred periods reduce premiums significantly. 6–12 months matches most employer sick pay arrangements.
Most plans run until State Pension Age.
Recommended monthly cover
£2,166/month
Until age 67 · 6 months deferred period
Estimate based on your inputs. Not a quote or recommendation.
Monthly outgoings to cover
£2,700
Existing protections (SSP + partner + IP)
£534/m
+ £5,000 savings (runway 1.9 months)
Cover gap to fill
£2,166/m
When sick pay would run out
Months 0–1
Employer full pay — no need for IP
Months 1–2
Employer half pay — partial gap of ~£1,497/m
Then up to ~28 weeks of SSP
SSP only ~£534/month — large gap vs essentials
After 6 months deferred period
Income protection benefit of £2,166/month kicks in (until age 67)
Most claims for income protection are paid for 12–36 months and resolve. Long-term claims (5+ years) are rare but mean the benefit is genuinely valuable.
Illustrative monthly premium:Income protection costs vary widely — typically £15–£100+/month for cover at this level — based on age, occupation, deferred period, and benefit amount. Premiums vary up to 3× between insurers for the same applicant. Get quotes from at least three providers and a specialist broker.
This is a starting point for conversations with a broker. Actual cover needs depend on occupation, health, employer benefits, and household circumstances. Take this number to an FCA-regulated adviser for a tailored recommendation.
What is income protection insurance and how does it work?
Income protection pays a tax-free monthly benefit if illness or injury stops you working. Unlike critical illness cover (which pays a one-off lump sum on diagnosis of specified conditions), income protection covers any illness or injury that prevents you working — back pain, depression, cancer, surgery recovery, anything. It pays out until you can return to work or until the policy ends, typically at retirement age. The deferred period (waiting time before payout) is typically 4 weeks to 12 months — the longer you can wait, the cheaper the premium. Most claims pay for 12–36 months and resolve as the policyholder recovers, but long-term claims do happen. Income protection is the single most underbought UK protection product despite being the most likely to pay out during a working career.
How does Statutory Sick Pay interact with income protection?
Statutory Sick Pay is £123.25/week in 2026/27 for up to 28 weeks. After that, your only fallback is means-tested benefits — Universal Credit and ESA — which are heavily restricted by household savings, partner income, and assets. Most income protection policies have a deferred period chosen to match employer sick-pay entitlement, typically 6–12 months, so you self-insure the bit your employer covers and IP picks up afterwards. Use the Take-home Pay Calculator to model your real net income — IP cover is sized against essential outgoings and net (not gross) replacement income, because IP benefit is tax-free.
How much income protection do I really need?
Most experts recommend covering essential outgoings — mortgage or rent, utilities, food, transport, childcare, and debt commitments — rather than headline gross salary. Discretionary spending (holidays, hobbies, eating out) cuts naturally during long illness. The UK industry caps benefit at 50–65% of gross income to maintain a return-to-work incentive, so very high earners often cannot insure 100% of their net pay. The needs-based calculation here works backwards from your actual essential expenses, not from gross salary, which means it is typically lower than crude "60% of salary" rules and more honest about what you actually need. Combine with our Life Insurance Needs Calculator and Critical Illness Cover Calculator for a full protection plan.
Frequently asked questions
How much income protection cover do I need in 2026?
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Most UK workers need a monthly benefit equal to their essential outgoings — mortgage or rent, utilities, food, transport, childcare, and debt commitments. For a typical working household this is £1,500–£3,000 per month, well below the 'replace 60% of gross salary' rule of thumb but more honest about what you actually need to keep the household running. Discretionary spending naturally falls during illness. Use the calculator above with your real outgoings, not your salary, to size cover properly.
What's the difference between income protection and critical illness?
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Income protection and critical illness cover different risks: income protection pays a tax-free monthly benefit for as long as you can't work due to any cause; critical illness pays a one-off lump sum on diagnosis of specific listed conditions only. Most UK advisers recommend income protection first because it covers a much wider range of scenarios — depression, back pain, cancer recovery, anything that stops you working — and pays for longer. Critical illness is best used as a top-up for major lump-sum needs such as clearing the mortgage. See our Critical Illness Cover Calculator for the lump-sum side.
Is income protection benefit taxable?
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Personal income protection benefit paid from a policy you bought yourself with after-tax money is paid tax-free. Group income protection arranged and paid for by your employer is treated as employment income and taxed via PAYE. This is why the monthly benefit you need from a personal policy is lower than your gross salary — the payout is net, so it's directly comparable to your normal take-home pay or essential outgoings.
What is a deferred period in income protection?
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The deferred period is the waiting time between your inability to work and the first benefit payment. Common options are 1, 3, 6, or 12 months. Longer deferred periods reduce premiums significantly — moving from a 1-month to a 6-month deferred period typically cuts premiums by 30–50%. Most people pick a deferred period that matches their employer sick-pay entitlement, so cover kicks in just as employer pay runs out. Check your contract: many UK employers offer 3–6 months at full pay then SSP only.
Will SSP and Universal Credit cover my outgoings if I can't work?
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Almost certainly not. Statutory Sick Pay is around £534 per month (£123.25/week, 2026/27) and is paid for a maximum of 28 weeks. After that you fall onto means-tested benefits — Universal Credit and ESA — which are heavily restricted by household savings, partner income, and assets. For most working households with a mortgage, statutory benefits cover well under 30% of essential monthly outgoings. Income protection bridges that gap.
How much does income protection cost per month?
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Premiums vary widely. A healthy 35-year-old office worker buying £2,000/month of cover with a 6-month deferred period to age 67 typically pays £20–£45 per month in 2026. The same cover at age 50 often costs £45–£100. Manual or higher-risk occupations pay 2–4× more. Premiums vary up to 3× between insurers for the same applicant — always compare quotes from at least three providers and a specialist broker.
Calcsmith provides estimates based on the information you enter. This is a needs estimate, not a quote, recommendation, or regulated financial advice. Consult an FCA-regulated financial adviser for personalised guidance.