Income Protection Insurance
Insure your income and get peace of mind that you’re covered if you can’t work due to illness or injury
Total reviews
2963
Average rating
4.61
What is Income Protection Insurance?
Income Protection is an insurance policy that covers part of your income if you are unable to work due to illness or injury. If you need to make a claim, it pays a monthly benefit, worth up to 70% of your pre-tax salary or income.
We’ve made it quicker and easier to apply for our Income Protection Insurance with our simple, automated online application, meaning you can get insured today in just 10 minutes.
What does Income Protection cover?
Income Protection works by providing a monthly income if you can’t work due to illness or injury. The monthly cost of this is based on your salary, how much you’d like to cover, and a few other things such as your chosen ‘waiting period’. We’ve answered a few of the most common questions related to how Income Protection Insurance works, below:
What is a waiting period?
A waiting period is how long you’d like to wait before being paid, which usually coincides with the sick pay you may receive from your employer. For example, if your company sick pay lasts for three months, our Income Protection Insurance would kick in at this point, to ensure you can receive a regular monthly income if you are unable to work through illness or injury. If you’re self-employed, you can choose a waiting period that suits your circumstances, starting from one week.
How much of my income can I insure?
With our Income Protection Insurance, you’re not only looking after your finances, you’re protecting your family and the way you live. You can insure up to 70% of your gross income (or average of the last three years’ net-profit if you’re self-employed) up to a maximum of £33,600 per year.
How long will I be paid if I need to make a claim?
You can choose Income Protection that means you can claim for either one year or two years. This means that if you suffer from an illness or injury that means you’re unable to work, you’ll be paid for a maximum of one or two years before you stop getting paid, depending on your plan. You can make multiple claims throughout the term of your plan.
What about my lifestyle or health conditions?
Unlike most other insurers, we don’t increase your premium based on your lifestyle or health conditions – the price you see is what you will pay. This starts from just £5 a month.
How long can I be covered for?
You can be covered for as long as you like, up to your chosen retirement age. You can also cancel your plan at any time, so you’re not tied in.
Does it take a long time to apply?
We’ve made it quicker and easier to apply for our Income Protection Insurance with our simple, automated online application, meaning you can get insured today in just 10 minutes.
About our Income Protection cover
Should you find yourself unable to work due to illness or injury, our Income Protection insurance gives you and your family flexible and affordable cover against your loss of income.
- You decide when to receive your first monthly payment to tie in with your sick pay
- With a 5-star Defaqto rating, you can trust our Income Protection to work for you
- We won’t increase your premiums based on your hobbies or health conditions
Our Income Protection insurance gives you peace of mind that your family’s lifestyle is protected. It provides the income needed to meet the monthly bills without having to dip into your savings or run up debts.
One less thing to worry about when the unexpected happens
An income when you can’t work
Our cover pays up to 70% of your gross income aiming to replace your take home pay.
Cover from just £5 per month
Tailor our affordable, flexible Income Protection insurance around your circumstances.
We’ve paid 94% of claims
In 2023 we paid 94% of Income Protection claims to our members, compared to an industry average of 81%*
*Association of British Insurers – Protection insurers pay out record £7.34 billion to support individuals and families | ABI
Pre-existing conditions
Our Income Protection allows you to get cover even if you have pre-existing conditions, as long as you’ve had no symptoms or treatment within the three years prior to taking out your plan. If you have had symptoms or treatment for a condition in the past three years, you’ll need two years with no symptoms or treatment after taking out the plan to be covered for that condition.
So, in just 10 minutes, you can get covered faster than ever before if you’re eligible. Your eligibility depends on your answers to a short series of straightforward health-related questions.
Income Protection Enhanced Benefits
For our Enhanced Benefits, we have partnered with Nuffield Health to give you unlimited access to the best health and wellbeing support services. This includes private online GP appointments available 24 hours a day, 365 days a year and at no additional cost. Plus, helpful financial support including bereavement payments and a new child payment.
Nuffield Health Benefits
Virtual GP
With 24/7 GP and ACP (Advanced Clinical Practitioner) access through unlimited phone or video appointments, you can always put your health first
Discount on Gym Membership
Focus on your fitness at a reduced cost with 20% off a Nuffield Health gym membership
Family Support Benefits
Bereavement Payment
In the unfortunate event that you die during the term of your plan, our Bereavement Payment provides your loved ones with a helping hand at what is sure to be a difficult time, by offering a payment of £6,000.
Terms and conditions apply.
New Child Payment
We’ll pay £250 into a Shepherds Friendly Junior ISA upon the birth or adoption of your child – to help you start planning for their future.
Terms and conditions apply.
Our claims promise to you
It’s our promise that should you ever need to make a claim, a specialist claims handler will be by your side every step of the way.
Our claims specialists have an average of more than 10 years’ experience, so you can rest assured they’ll make the process as smooth and hassle-free for you as possible.
All correspondences with us, and any documents required to handle your claim, will be processed within five working days. We’ll ensure you’re kept up to date with the progress of your claim and offer expert guidance and information when you need it.
Everyone can benefit
We’re a financial mutual that’s built on fairness. Everything we do is for our members, not shareholders, and all profits made are paid to you or re-invested for your benefit.
Our members love that we do things the right way
Nine out of 10 members would recommend us for the way we protect their futures.
Helping our members benefit for almost 200 years
The world’s changed a lot since 1826 but our idea of fairness remains the same.
When you’re member-owned, it matters more
We take the financial future of every member personally, because you’re one of us.
Take out Income Protection and claim your free gift
Open an Income Protection plan and get rewarded too. We’ll send you a Love2shop voucher code worth £80 when you make your third payment. See our terms and conditions.
Take out Income Protection and claim your free gift
Open an Income Protection plan and get rewarded too. We’ll send you a Love2shop voucher code worth £75 when you make your third payment. See our terms and conditions.
Ready to start protecting your future?
It’s wise to secure yourself and your family against the unknown. Download the documents below to get up to speed with exactly how the Shepherds Friendly Income Protection insurance works.
Find out more about income protection insurance
Frequently asked questions
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Who can apply for income protection insurance?
Our Income Protection insurance is available to those who are employed or self-employed, aged between 16 and 60. Applicants must be UK taxpayers, have a UK bank or building society account, and have been registered with a UK medical practice for at least three years. Note that coverage is not available for certain occupations – we verify if you are eligible at the quote stage of our application process.
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What does underwriting involve?
Our Income Protection uses moratorium underwriting, meaning you can get covered even if you have pre-existing health conditions, as long as you’ve had no symptoms or treatment in the past three years. If you have had symptoms or treatment during this time, you’ll need two years with no symptoms or treatment after taking out Income Protection for the condition to be covered by your plan.
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How long does income protection last?
The minimum term for a plan is five years, with the maximum being limited by your age. Cover will stop when you reach the age of 70.
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How much of my income will the Shepherds Friendly Income Protection insurance cover?
If you’re employed we can cover up to 70% of your regular gross income. If you’re self-employed, we can cover up to 70% of your net profit (based on an average of the previous 3 years’ net profit). Benefits are paid monthly and are not taxed. The maximum benefit we can cover on our Income Protection is £33,600 per year. The minimum benefit is determined by a minimum of £5 a month. You can find out personalised details about this when you apply for a quote.
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What income protection does not cover
Income protection does not cover redundancy or dismissal.
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What is the difference between income protection and critical illness
Critical Illness Cover pays out a lump sum on the diagnosis of a critical illness, usually from a list of specific conditions that are predefined. Income Protection provides monthly payments if illness or injury prevents you from working, to help cover ongoing expenses like mortgage or rent.
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How to claim income protection insurance
Please fill out our online claim form if you are unable to work due to illness or injury and have an Income Protection plan with us. After you have submitted this form, someone from our Claims team will respond within 48 hours to begin processing your claim.
Our Member Services Team are always happy to help. You can call them on 0800 526 249.
Important things to consider about Income Protection
- If you stop paying premiums under this plan, your cover will cease.
- If your income increases and you do not review your benefit level, you may not have sufficient benefit to meet your needs when you make a claim.
- If your income decreases and you do not review your benefit level, you may not be able to claim the full amount of benefit you applied for when the plan started, or you may only be entitled to House Persons Benefit if you are unemployed at the date of incapacity.
- If you cancel your plan, you will not receive any money back.
- Benefits received from this plan may affect your entitlement to any other benefit.
- If you do not give us accurate and honest answers about your health and lifestyle, we may not pay the benefit in the event of a claim.
All references to taxation are to UK taxation and are based on Shepherds Friendly Society’s understanding of current legislation and H M Revenue and Customs practice which may change in the future. For our With Profits plans investment growth is by means of bonuses, the amount of which cannot be guaranteed throughout the term of the contract. Please ensure that you read the full terms and conditions of this plan which are available from your financial adviser or by contacting us directly.
Please note: No advice has been provided by Shepherds Friendly. If you are in any doubt as to whether a plan is suitable for you, we recommend getting in touch with a financial adviser, who will be happy to take you through what options are available. Should you consult a financial adviser there could be a cost involved and you should confirm this cost beforehand.