Income Protection Calculator

Calculate income protection cover needed and estimate monthly premiums by age and deferral period.

Last updated: April 2026 · Source: MoneyHelper — Income protection

£

Monthly Benefit (if you can't work)

£2,000.00

60% of salary · Pays after 13 weeks

Annual Benefit

£24,000.00

Est. Monthly Premium

£52.50

Cover Duration

32 years

Total Premiums

£20,160.00

Premiums are indicative only. Actual costs depend on health, occupation, smoker status and provider. A longer deferred period reduces premiums significantly.

Disclaimer

This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.

How It Works

Income protection insurance pays a regular monthly income if you are unable to work due to illness or injury. Policies typically cover 50-70% of your gross income (insurers cap this to prevent over-insurance). Unlike critical illness cover, income protection pays out for any condition that prevents you from working, not just specified illnesses.

The deferred period (waiting time before payments start) significantly affects the premium. A 4-week deferred period is most expensive, while a 6-month or 12-month deferral can halve the premium. Choose a deferred period that matches your employer's sick pay provision or your savings buffer.

UK income protection payouts are tax-free if you pay the premiums yourself. Policies can be set to pay until retirement age, a specific age, or for a fixed period (budget policies). Long-term policies that pay to retirement are more expensive but provide the most comprehensive protection.

Example: Age 35, £45,000 salary, 60% cover to age 67

  1. Monthly income to protect: £45,000 x 60% / 12 = £2,250
  2. Deferred period: 13 weeks (employer sick pay covers first 3 months)
  3. Term: to age 67 (32 years)
  4. Estimated monthly premium: £45-£65
  5. Annual cost: £540-£780 (tax-free payout if claimed)

Source: MoneyHelper — Income protection

Frequently Asked Questions

What does the Income Protection Calculator do?
Calculate income protection cover needed and estimate monthly premiums by age and deferral period. All calculations are performed in your browser using official UK rates and thresholds.
Are these actual quotes?
No. This calculator provides estimates based on typical UK insurance factors. Actual premiums depend on your specific circumstances. Always compare quotes from multiple insurers.
Is insurance required by law?
Some insurance is legally required in the UK — such as motor insurance, employers' liability insurance and buildings insurance (if you have a mortgage). Other types are optional but strongly recommended.