Protection Insurance
Find Out What Protection You Need in 60 Seconds
Answer a few quick questions and see where you're financially exposed — no jargon, no pressure.
Why It Matters
What protection is actually for
Statutory sick pay is limited
Statutory Sick Pay is paid for up to 28 weeks and sits well below most household budgets. Income protection is designed to bridge that gap.
Your mortgage does not pause
Lenders still expect payments if you are ill or unable to work. Cover can be arranged to run alongside your mortgage term.
Cover usually costs less earlier
Premiums are based largely on your age and health when you apply, so arranging cover sooner is often cheaper over the long run.
Cover, exclusions and premiums vary by insurer and depend on your age, health and occupation. Policies have terms and conditions that must be met for a claim to be paid.
Types of Cover
Your Protection Options
Each type serves a different purpose. Most people benefit from a combination.
Life Insurance
Cover tailored to youLife insurance pays a lump sum to your loved ones if you pass away. It can cover mortgages, debts, and help maintain your family's lifestyle. Payouts are free of income tax and capital gains tax, but may form part of your estate for Inheritance Tax unless written in trust.
Premiums depend on your circumstances and the cover selected.
Who Needs This?
- Anyone with a mortgage
- Parents with dependent children
- Main income earners
- Business owners
- Anyone with debts
Key Benefits
- Lump sum paid free of income tax and capital gains tax
- Can avoid inheritance tax via trust
- Level or decreasing cover options
- Joint policies for couples
Critical Illness Cover
Cover tailored to youPays a tax-free lump sum if you're diagnosed with a serious illness like cancer, heart attack, or stroke. Use it however you need.
Premiums depend on your circumstances and the cover selected.
Who Needs This?
- Those without savings
- Self-employed without sick pay
- Primary earners
- Anyone with a mortgage
- Family history of illness
Key Benefits
- Covers many serious illnesses
- Pays regardless of work ability
- Can combine with life cover
- Children's cover often included
Income Protection
Cover tailored to youPays a monthly income if you're unable to work due to illness or injury. Typically covers up to 60% of salary until you recover or retire.
Premiums depend on your circumstances and the cover selected.
Who Needs This?
- Self-employed with no sick pay
- Limited company sick pay
- Those on statutory sick pay only
- Ongoing financial commitments
- Main household earners
Key Benefits
- Pays monthly like a salary
- Cover if illness or injury stops you working
- Can pay until retirement
- Tax treatment depends on how cover is arranged
At a Glance
Compare Protection Types
See the key differences between each type of cover
Life Insurance
Cover tailored to youCritical Illness
Cover tailored to youIncome Protection
Cover tailored to you| Feature | Life Insurance | Critical Illness | Income Protection |
|---|---|---|---|
| When it pays out | When you pass away | When diagnosed with serious illness | When unable to work due to illness/injury |
| Payment type | One-off lump sum | One-off lump sum | Monthly income |
| What it covers | Death during policy term | Many serious illnesses | Illness or injury that stops you working |
| Best for | Mortgage, dependents, debts | Mortgage payoff, treatment costs | Bills, rent, ongoing expenses |
| Can claim multiple times | — | Usually no | Yes |
| Tax on payout | Usually tax-free* | Usually tax-free* | Usually tax-free* |
| Cost | Cover tailored to you | Cover tailored to you | Cover tailored to you |
| Who needs it most | Anyone with mortgage or dependents | Those without savings buffer | Self-employed, limited sick pay |
*Tax treatment depends on the policy structure and individual circumstances. Premiums depend on your circumstances and the cover selected.
Quick Estimate
Protection Cost Calculator
Get a rough idea of what protection could cost you
Estimated Monthly Cost
£362 – £564
per month
Life
£72-108
Critical
£220-330
Income
£70-126
*Estimates only. Actual premiums depend on health and other factors.
Common Questions
Protection Insurance FAQs
What's the difference between life insurance and critical illness cover?
Life insurance pays out a lump sum if you pass away during the policy term. Critical illness cover pays out if you're diagnosed with a serious illness listed in your policy while you're still alive. Many people combine both for comprehensive protection.
How much life insurance do I need?
A common guideline is 10x your annual salary plus any outstanding debts like your mortgage. Consider how long your dependents would need support and any future costs like children's education. Our protection check can help you calculate this.
What does income protection cover?
Income protection pays a monthly income (typically up to 60% of your salary) if you're unable to work due to illness or injury. Unlike critical illness which pays a one-off lump sum, income protection provides ongoing support until you recover or retire.
Can I get protection if I have pre-existing conditions?
Yes, in many cases you can still get cover. Some conditions may be excluded or premiums may be higher, but we work with specialist insurers who cater for various health situations. It's always worth getting a quote.
How long does it take to set up protection?
Some applications can be completed within 24–48 hours. More complex applications may require additional medical information or a GP report, which can take longer. We guide you through the entire process and keep you updated.
How are protection premiums treated for tax?
Tax treatment depends on how cover is arranged and on your individual circumstances. Personal policies and business-arranged policies are treated differently, and payouts are usually tax-free where the policy is set up appropriately. We don't provide tax advice, but we can introduce you to an accountant if required.
What's a deferred period in income protection?
The deferred period is how long you wait after being unable to work before payments begin. Common options are 4, 8, 13, 26, or 52 weeks. Longer deferred periods mean lower premiums. Choose based on how long your savings or employer sick pay would last.
Do I need protection if I have savings?
Savings provide a buffer, but protection ensures long-term security. Consider: could your savings cover years of mortgage payments, bills, and living costs if you couldn't work? Protection gives you peace of mind beyond what savings alone can provide.
Find Out What You Need
Get a personalised estimate. No obligation, no hard sell.
Or call 01992 535 555
General information only, not a personal recommendation. Apply Wise Financial Ltd is an Appointed Representative of Scott & Goose LLP, which is authorised and regulated by the Financial Conduct Authority. FCA Firm Reference Number 661183. Estimates are for illustrative purposes.