Content Writer
Former Senior Protection Advisor
Income protection insurance can bring peace of mind to employees or self-employed workers in any industry. This is especially true of those with significant financial commitments, such as a mortgage.
However, there are a range of different types of income protection, from individual to group policies, so it’s important to select a provider who can offer the type of cover you need. We look at which type of insurance providers offer income protection, and how to compare them.
What type of insurers offer income protection?
Many of the same insurers that provide life insurance and other similar forms of personal insurance policy, also provide income protection insurance. However, the type of lender that will suit your needs will depend on the type of policy you’re looking for.
If you’re looking for individual income protection, for example, not all providers will have short-term income protection policies available. It’s also important that you ensure the provider you approach accepts your income type. Not all income protection policies are suited to self-employed individuals, or those with complex income.
Group income protection is typically offered to employees by their employer. Personal insurance providers won’t necessarily provide group policies, but some providers have a broad variety that are suitable for both individuals and employers.
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Best UK income protection providers
The best provider for your needs will depend on which style of policy you need and the extent of the coverage you’re looking for. For example, some policies cover you for a set length of time, and others cover you indefinitely (or to retirement).
You’ll also need to decide what level of cover is suitable. Some providers will cover a maximum percentage of your salary, whereas others cap their maximum monthly payouts at a certain value - for example, they may pay up to £1500 per month, regardless of your salary.
Here are some examples of income protection providers and a brief overview of their policy availability, based on individual or group protection cover:
1. British Friendly
British Friendly specialise in income protection insurance, which are available through intermediaries only. At Teito, we can help you to access and apply for their products, which include:
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BFS Protect - available to both the employed and self-employed and tailored to your individual needs and circumstances. They offer short and long term cover and will payout weekly or monthly. You can also opt for payments to go directly to your mortgage lender if preferred.
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BFS Breathing Space - tailored to self-employed people with fluctuating income and those with complex income. They have capped monthly lump sum payouts of up to £1250, which can also be paid weekly, but only short-term policies are available, with a maximum of a 2-year term
2. Cirencester
Cirencester is an insurance provider offering income protection insurance for both employed and self-employed individuals. Their main policies are:
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My Earnings Protected - which covers up to 65% of your salary and provides both long and short-term policies to those with an income of at least £6,400 per year
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Income Assured Enhanced - an investment-backed element policy with profit-sharing options
3. Aviva
Aviva is a well-known insurance provider offering a range of different insurance policies, including income protection. Their Living Costs Protection product is a flexible income protection policy that doesn’t require any proof of income, so it is available to both employed and self-employed applicants who work at least 16 hours per week. It pays up to £1,500 per month for up to 12 months at a time
4. Vitality
Vitality offers flexible, bespoke income protection cover to a broad range of earners, with up to £8000 per month cover available with proof of income. They also have a 20% boost on payouts for 6 months available to those who take steps to stay healthy.
5. LV (Liverpool Victoria)
Liverpool Victoria offers a wide range of different types of insurance policy, including comprehensive income protection policies with flexible features. Their income protection policies are available to employed and self-employed earners and are easily customisable based on preferred deferred periods and levels of cover - up to £5000 per month with proof of income.
6. Legal & General
Another large insurance provider offering many types of cover, Legal & General income protection policies pay up to 60% of your gross income up to a maximum salary of £60,000 (up to 50% for earnings above £60k).
Group income protection providers
If you’re looking for a group income protection scheme, you’ll need a provider with the right type of policy for your business. The following group income protection providers may be suitable, however, it’s a good idea to compare policies across the whole market to ensure you’re securing the best cover for your employees, at the right price for you:
Zurich
Zurich is a large insurance provider, offering individual insurance policies, such as life insurance, as well as group income protection policies that cover up to 80% of your employees’ salaries. Policies have flexible criteria, with employees able to choose their preferred deferral period, and automatic acceptance limits benefit typically available without underwriting. They also offer additional support, such as rehabilitation and cover for National Insurance and pension contributions.
Canada Life
Potentially suited to smaller businesses, Canada Life group income protection cover is available to businesses with 2 or more employees. Cover is available for up to 75% of employee salaries, as well as their pension and National Insurance contributions. There are also a host of other benefits, such as rehabilitation and dental support available.
How to choose the right income protection provider
Whether you’re looking for personal or group income protection insurance, it’s not always easy to find a suitable policy. Some insurance providers only operate through intermediaries, such as ourselves. The vast majority of providers also have optional extras available to each policy, which you may not be aware of if they aren’t pointed out.
At Teito, our experienced insurance advisers can find a cover that works for you, at an affordable cost for any type of applicant. We can provide tailored quotes from a range of providers, including specialist insurers with exclusive deals.
For a free, no-obligation chat with an advisor specialising in income protection insurance, get started here.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.