What is the best income protection insurance UK?

At Reassured, we’ve done a deep dive into the various income protection providers in the UK to bring you our top 10 shortlist.

According to our research, the best income protection insurance is offered by:

  1. LV= (Liverpool Victoria)
  2. Holloway Friendly
  3. NFU Mutual
  4. Shepherds Friendly
  5. Aviva
  6. Royal London
  7. Legal & General
  8. British Friendly Society
  9. Cirencester Friendly
  10. AIG

While he have compiled this list based on research, the best income protection for you will depend on your personal circumstances (such as your budget and what you want to cover).

Keep reading our best income protection insurance review to find out more about each of these insurers and the cover they offer.

Through our advised service you can compare all the insurers from our top 10 list, plus many more.

Our whole of market income protection comparison service means you can find the best available deal to meet your needs and budget, without paying any fees.

Compare Best Income Protection Insurance »

How have we calculated the best company for income protection insurance?

We’ve researched each insurer and taken the following into consideration to compile our list:

  • Defaqto rating - The insurers we have ranked in our top 10 have each been rated 5 stars by Defaqto. This is the highest rating an insurer can receive.
  • Trustpilot score - This shows how customers rate the products and services offered. This score is based on all services offered by the insurer as a whole, not specifically income protection. 5 stars is the maximum score an insurer can receive
  • Maximum benefit amount - The maximum amount an insurer will pay out
  • Policy details - The specifics of the cover provided, such as age restrictions and additional benefits
  • Pay out rate - The percentage of claims paid out by an insurer in a specific year. We have taken pay out rates from 2023
InsurerRanking defaqto logo Trustpilot logo Age restrictionsMaximum benefit amountPay out rate [2023]
LV= logo 1 Defaqto 5 stars 4.4 - 'Excellent'18 - 59
Up to 60% of your earnings before tax92.0% of all income protection claims
Holloway logo 2 Defaqto 5 stars 4.4 - 'Excellent'
18 - 59
Up to 65% of your earnings before tax86.0% of all income protection claims
NFU Mutual logo 3 Defaqto 5 stars 4.3 - 'Excellent'
17 - 59
Up to 60% of your earnings before tax88.0% of all income protection claims
Shepherds Friendly logo 4 Defaqto 5 stars 4.3 - 'Excellent'
16 - 60
Up to 70% of your earnings before tax96.2% of all income protection claims
Aviva logo 5 Defaqto 5 stars 4.1 -
'Great'
18 - 59
Up to 65% of your earnings before tax92.5% of all income protection claims
Royal London logo 6 Defaqto 5 stars 4.0 -
'Great'
18 - 59
Up to 60% of your earnings before tax99.0% of all protection claims
Legal & General logo 7 Defaqto 5 stars 4.0 -
'Great'
18 - 59
Up to 60% of your earnings before tax80.0% of all income protection claims
British Friendly logo 8 Defaqto 5 stars 3.8 -
'Great'
18 - 59
Protect: Up to 65% of your earnings before tax

Breathing Space: £1,250 per month		89.0% of all income protection claims
Cirencester Friendly logo 9 Defaqto 4 stars Cirencester Friendly don’t have a Trustpilot page18 - 54
My earnings protected: Up to 65% of your earnings before tax95.8% of all income protection claims
AIG logo 10 Defaqto 3 stars 2.8 -
'Average'
17 - 54
Up to 60% of your earnings before tax88.0% of all income protection claims

This information has been taken from each insurers website. It is correct as of 30/08/24 and is subject to change at any time

Our advised team offer a whole of market service, allowing you to compare all the insurers mentioned in this article, plus more.

However, please note, while some insurers offer cover to those aged 16 and 17, you must be over 18 to purchase a policy through Reassured.

Whole of Market Quotes » Find Your Best Deals

1. LV=

LV=

About LV=: LV= (Liverpool Victoria) has history dating back 180 years. They provide a variety of insurance, pension and savings services with over a million customers.

  • Policy name: Flexible protection plan income protection and Flexible protection plan income protection budget
  • Defaqto rating: 5 stars (out of 5)
  • Trustpilot score: 4.0 stars (out of 5) / ‘Great’
  • Awards: ‘Best Income Protection Provider’ 14 years in a row (2010 - 2023) from the Moneyfacts Awards
  • Website: www.lv.com/income-protection
Policy featuresFeature description
Age restrictionsCover is available to UK residents aged 18 - 59
Policy term

Minimum term of 5 (cover must cease by age 70)

Maximum benefit amountUp to 60% of your income before tax could be protected

Up to a maximum payment of £20,833 per month
Definition of incapacityCover uses an own occupation definition
Deferred periodOptions include 1, 2, 3, 6 or 12 months
Payment periodStandard option: Short term of 12 or 24 months or long term (full term)

Budget option: Short term (up to 12 or 24 months)
Premium typePremiums can be guaranteed or reviewable
Additional benefits

Free benefits: Fracture cover, death benefit, waiver of premiums, parent and child cover, £1,500 benefit guarantee, back to work support, teachers sick pay guarantee, features for doctors and surgeons, member benefits

Pay out rate92.0% of all income protection claims were paid in 2023

2. Holloway Friendly

Holloway Friendly

About Holloway Friendly: Holloway Friendly are the original income protection specialists, having invented this form of cover in 1875 (or what was once known as a ‘Holloway Contract’).

  • Policy name: My Sick Pay
  • Defaqto rating: 5 stars (out of 5)
  • Trustpilot score: 4.3 stars (out of 5) / ‘Excellent’
  • Awards: ‘Best New Product’ for My Sick Pay at the 2022 Protection Review Awards
  • Website: www.holloway.co.uk
Policy featuresFeature description
Age restrictionsCover is available to UK residents aged 18 - 59
Policy term

Minimum term of 5 (cover must cease by age 70)

Maximum benefit amountUp to 65% of your income before tax could be protected

Up to a maximum of £65,000 in payments per year
Definition of incapacityCover uses an own occupation definition
Deferred periodOptions include 4,8,13,26 or 52 weeks
Payment periodShort term (up to 1 or 2 years) or long term (full term)
Premium typePremiums can be guaranteed or age-based
Additional benefits

Free benefits: £1,500 drop in earnings guarantee, life changes guarantee, payment holiday, back to work support, waiver of premiums, terminal illness cover, financial support for medical treatment, member assistance programme

Pay out rate86.0% of all income protection claims were paid in 2023

3. NFU Mutual

NFU Mutual

About NFU Mutual: NFU has been in business for more than 100 years, created by 7 farmers from the Midlands. Now, the company boasts 900,000 customers across all their services. Their life cover, including income protection, is actually provided by AIG.

Policy featuresFeature description
Age restrictionsCover is available to UK residents aged 17 - 59
Policy term

5 - 53 years (cover must cease by age 70)

Maximum benefit amountUp to 60% of your income before tax could be protected

Up to the first £60,000 you earn and 50% on earnings above this
Definition of incapacityOptions include own occupation definition or work tasks
Deferred periodOptions include 4, 8, 13, 26 or 52 weeks
Payment periodShort term (up to 12 or 24 months) or long term (full term)
Premium typePremiums are guaranteed
Additional benefits

Free benefits: Make changes to your cover, waiver of premiums, sick pay guarantee, sabbatical break cover, unemployment support, features for doctors and surgeons

Pay out rate88.0% of all income protection claims were paid in 2023

4. Shepherds Friendly

Shepherds Friendly

About Shepherds Friendly: Shepherds Friendly are a mutual society. Founded back in 1826, they now have over 100,000 members. As a mutual society, they’re owned by their members.

  • Policy name: Income protection plan
  • Defaqto rating: 5 stars (out of 5)
  • Trustpilot score: 4.2 stars (out of 5) / ‘Great’
  • Awards: ‘Best Protection Service’ at the 2022 ILP Moneyfacts Awards
  • Website: www.shepherdsfriendly.co.uk/income-protection
Policy featuresFeature description
Age restrictionsCover is available to UK residents aged 16 - 60
Policy term

Minimum term of 5 years (cover must cease by age 70)

Maximum benefit amountUp to 70% of your income before tax could be protected

Up to a maximum payment of £33,600
Definition of incapacityCover uses an own occupation definition
Deferred periodOptions include 4, 8, 13, 26 or 52 weeks
Payment periodShort term (up to 1 or 2 years) or long term (full term)
Premium typePremiums can be age-based and reviewable
Additional benefits

Free benefits: Virtual GP, discount gym membership with Nuffield Health, guaranteed insurability, emotional wellbeing platform, waiver of premiums, house person benefit, bereavement payment, new child payment

Pay out rate96.2% of all income protection claims were paid

5. Aviva

Aviva

About Aviva: Aviva have more than 320 years of experience, protecting over 18.7 million people across the UK, Ireland and Canada.

Policy featuresFeature description
Age restrictionsCover is available to UK residents aged 18 - 59
Policy term

5 - 52 years (cover must cease by age 70)

Maximum benefit amountUp to 65% of your income before tax could be protected

Up to the first £60,000 you earn and 45% on earnings over £65,000

Up to a maximum of £240,000 in payments per year (or £20,000 per month)
Definition of incapacityCover uses an own occupation definition
Deferred periodOptions include 4, 8, 13, 26, 52 or 104 weeks
Payment periodShort term (up to 24 months) or long term (full term)
Premium typePremiums can be guaranteed or reviewable
Additional benefits

Free benefits: £1,500 benefit guarantee, back to work benefit, waiver of premiums, life change benefit, hospital benefit, trauma benefit, features for NHS doctors, surgeons, nurses and midwives, Aviva Digicare+, maternity and paternity leave cover, restricted benefit

Can be added for an extra cost: Fracture cover, access to treatment aboard (global treatment)

Pay out rate92.5% of all income protection claims

6. Royal London

Royal London

About Royal London: Royal London are the UK’s largest mutual life, pensions and investment company.

Policy featuresFeature description
Age restrictionsCover is available to UK residents aged 18 - 59
Policy term

5 - 52 years (cover must cease by age 70)

Maximum benefit amountUp to 65% of your income before tax could be protected

Up to the first £15,000 you earn and 55% on earnings above this

Up to a maximum of £250,000 in payments per year
Definition of incapacityCover uses an own occupation definition
Deferred periodOptions include 4, 8, 13, 26 or 52 weeks
Payment periodShort term of 1, 2 or 5 years or long term (full term)
Premium typePremiums can be guaranteed or age-based
Additional benefits

Free benefits: Waiver of premiums, guaranteed insurability, fracture cover, hospitalisation benefit, minimum benefit, guarantee, back to work payment, payment upon death, terminal illness cover, Helping Hand support

Pay out rate99.0% of all claims were paid in 2023

8. British Friendly Society

British Friendly

About British Friendly Society: Founded in 1902 to provide sickness benefits for commercial travellers, now a mutual society. British Friendly also provide the staff benefit for British Airways (and have done since 2002).

  • Policy name: Breathing Space and Protect
  • Defaqto rating: 5 stars (out of 5)
  • Trustpilot score: 3.8 stars (out of 5) / ‘Great’
  • Awards: ‘Best Income Protection Provider’ at the 2018 LifeSearch Protection Awards
  • Website: www.britishfriendly.com
Policy featuresFeature description
Age restrictionsCover is available to UK residents aged 18 - 59
Policy term

Minimum term of 5 (cover must cease by age 70)

Maximum benefit amountProtect: Up to 65% of your income before tax could be protected

Up to the first £60,000 you earn and 45% on earnings up to £100,000

(up to a maximum of £57,000 per month)

Breathing Space: Choose a monthly payment of between £541 and £1,250 per month
Definition of incapacityCover uses an own occupation definition
Deferred periodOptions include 4, 8, 13, 26 or 52 weeks
Payment periodProtect: Short term (up to 1, 2 or 5 years) or long term (full term)

Breathing Space: Short term (up to 1 or 2 years)
Premium typeProtect: Premiums can be guaranteed or age-based

Breathing Space: Premiums are age-based
Free benefits

Free benefits: Life changes benefit (guaranteed insurability), premium holiday, back to work support payments, terminal illness cover, waiver of premiums, mortgage payment option

Can be added for an extra cost: Fracture cover, children’s critical illness cover

Pay out rate89.0% of all income protection claims were paid in 2023

9. Cirencester Friendly

Cirencester Friendly

About Cirencester Friendly: Cirencester Friendly are a mutual society, meaning they’re owned by their members. They were founded in 1890 and now have 37,000 members.

  • Policies name: My Earnings Protected
  • Defaqto rating: 5 stars (out of 5)
  • Trustpilot score: Cirencester Friendly don’t have a Trustpilot page
  • Awards: ‘Best Protection Service’ in the 2023 Moneyfacts Awards
  • Website: www.cirencester-friendly.co.uk
Policy featuresFeature description
Age restrictionsCover is available to UK residents aged 18 - 54
Policy term

No minimum term stated but cover must cease by age 70

Maximum benefit amountUp to 65% of your income before tax could be protected

Up to a maximum of £52,000 in payments per year
Definition of incapacityOptions include own occupation and suited occupation
Deferred periodOptions include 4, 8, 13, 26 or 52 weeks
Payment periodShort term (up to 2 years) or long term (full term)
Premium typePremiums can be guaranteed or guaranteed age-based
Free benefits

Free benefits: Guaranteed insurability, temporary suspension of cover, refund of premiums during a claim period, terminal illness cover

Can be added for an extra cost: Fracture and hospitalisation benefit, immediate death benefit, severe injury cover, recovery benefit

Pay out rate95.8% of all income protection claims were paid out in 2023

10. AIG

AIG

About AIG: AIG are a global financial services company, operating in 190 countries. In the UK, they’re known as AIG Life and they have 8 million customers. As of April 2024, AIG’s life cover was acquired by Aviva.

  • Policy name: YourLife plan
  • Defaqto rating: 5 stars (out of 5)
  • Trustpilot score: 2.8 stars (out of 5) / ‘Average’
  • Awards: nominated for the ‘Income Protection Upgrade’ award at the Protection Guru Prestige Awards
  • Website: www.aiglife.co.uk/customers/products/personal-protection
Policy featuresFeature description
Age restrictionsCover is available to UK residents aged 17 - 59
Policy term

5 - 53 years (cover must cease by age 70)

Maximum benefit amountUp to 60% of your income before tax could be protected

Up to the first £30,000 you earn, plus 55% on earnings between £30,000 - £100,000 and 45% on earnings over £100,000

Up to a maximum payment of £20,833 per month
Definition of incapacityOptions include own occupation, suited occupation or work tasks
Deferred periodOptions include 4, 8, 13, 26 or 52 weeks
Payment periodShort term (up to 24 months) or long term (full term)
Premium typePremiums are guaranteed
Free benefits

Free benefits: waiver of premiums, free cover during underwriting, rehabilitation support, trauma benefit, hospitalisation benefit, death benefit, terminal illness cover, AIG Smart Health app

Pay out rate88.0% of all income protection claims were paid out in 2023

Why use Reassured to find the best income protection insurance?

Using our advised team you’ll benefit from:

  • A whole of market comparison service, including the UK’s best income protection providers
  • Personalised recommendations on what’s best for you from our team of experts
  • Fee-free & no-obligation quotes
  • Support throughout the entire application process
  • An FCA (Financial Conduct Authority) regulated service
  • Affordable income protection premiums starting from 20p-a-day ‡

What’s the best value income protection insurance?

According to our income protection quote comparison service, Vitality offers the best value income protection.

This is based on them offering the most affordable income protection, starting from just £5 per month.

While we may identify one insurer as the ‘best value’, the right insurer for you could differ due to your personal circumstances and what type of cover you’re looking for.

Below we have highlighted 5 of our most affordable income protection providers.

Quotes are based on a non-smoker, in good health, with an annual income of £30,000. The policy term is until age 65, with a 13 week deferred period and short term payment period:

Age Vitality logo Holloway Friendly logo Legal & General logo AIG logo Royal London logo
30£5.00£6.41£7.04£8.07£9.66
35£5.17£6.88£8.41£9.38£11.23
40£6.28£8.60£9.34£11.39£13.33
45£8.01£11.00£12.17£13.89£16.88
50£10.62£14.63£16.45£18.84£21.86

The exact price you pay for cover can vary depending on your personal circumstances and which insurer you secure cover through.

Comparing multiple income protection quotes can help you find the best available price.

Why not use our fee-free service to compare whole of market quotes?

What is the best income protection insurance for me?

Hopefully the details outlined in this article can help you to identify suitable income protection for your needs.

Ultimately, the best policy for you will be the one that allows you to cover your essential costs and is at an affordable price.

How to get the best income protection insurance:

  • Always check the policy terms and conditions - Here you’ll find the key details to establish whether a policy is right for your needs
  • Work out how much cover you might need - Knowing what you need to cover and how much cover you’d need can allow you to find a suitable policy
  • Check your sick pay schedule - This way you can align your policy with your work sick pay schedule to get the most out of your policy
  • Be open and honest - Providing your insurer with all the correct information when applying is essential in making sure your cover is valid
  • Review your cover regularly - Once your cover is in place, it’s important to regularly check that it’s meeting your needs. If your circumstances change, you could change your policy or secure new cover
  • Consider using a broker - A broker (like Reassured) can help to provide you with all the information on each policy, while comparing quotes to make sure you get the best deal

Best income protection insurance calculator

Enter your monthly financial commitments and other key costs to establish how much cover you may need.

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£723 a month is the average monthly mortgage payment in the UK, with the average monthly rental price coming in at £700.

The majority of our monthly income will go towards rental or mortgage payments.

For this reason, it’s essential to have precautions in place to ensure you could keep up to date with your payments if you weren’t receiving your usual income.

Monthly income protection payments can help to cover this large expense and ensure you can stay in your home.
£
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According to the Money Advice Service, the average household spends £340 a month on household bills.

This includes electricity, gas, TV and broadband.
£
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Childcare costs are on the rise with it now costing £137.69 per week for part-time nursery for a child under the age of two.

That’s over £550 per month - is this an amount you’d be able to keep up with if you were unable to work?

Becoming ill could also result in the need for additional childcare while you attend doctors’ appointments or medical treatment.
£
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The average household in the UK spends around £97 a week on their food shop, totaling £388 a month.

While this may seem like a small amount in comparison to some of the other expenses mentioned, the food shop is often where we try to scrimp and save when we fall on hard times.

Income protection can take care of the cost of your weekly food shop, as well as many other essential costs.
£
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At the beginning of 2020, credit card debt in the UK was at £2.1 billion, with almost 27 million UK residents in some kind of debt.

Becoming unable to work could make it hard to keep up with credit card or loan payments (including car finance or other financed goods).

Failure to keep up with payments could result in additional interest being incurred or late fees issues - resulting in a higher total needing to be paid.
£
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The average spent on public transport each month comes to an average of £94.

This includes the cost of public transport, as well as petrol and diesel vehicles.

While this amount may reduce while you’re unable to work as you won’t need to commute there may be additional spending on public transportation if your illness or injury leaves you unable to drive.
£
£

Your total cover estimate

£ 0

Let us find you our best quotes.

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What other income protection providers are there?

There are many other excellent insurers out there that didn’t make the top 10 list. These include:

  • The Exeter - 5 stars on Defaqto
  • Vitality - 5 stars on Defaqto
  • Zurich - 5 stars on Defaqto
  • National Friendly - 3 stars on Defaqto
  • Wiltshire Friendly Society - 3 stars on Defaqto
  • HSBC - 2 stars on Defaqto

Find your best income protection insurance deal

To find the best income protection insurance policy, it’s essential to compare multiple quotes.

At Reassured, our advised team can provide you with quotes from the whole of the market. This means you can compare quotes from all the insurers mentioned in this article.

Find the best income protection insurance company for your needs by using our fee free service.

Quotes are no-obligation and start from just 20p-a-day, so why not get in touch?

Compare Quotes from UK’s Best Insurers »

Income protection insurance FAQs:

Income protection glossary
  • Policy term - The duration of your cover
  • Benefit amount - This refers to what’s paid out to you. Also known as a monthly benefit
  • Definition of incapacity - What makes you eligible to claim on your policy
  • Deferred period - The time that must pass before your policy will pay out. It can also be referred to as a ‘waiting period’
  • Payment period - How long your policy will pay out for
  • Premium type - How you’ll pay for your cover

What is income protection insurance?

Income protection (or income protection insurance) is an insurance policy that can provide you with an income while you’re unable to work due to illness or injury.

Up to 70% of your income could be paid out on a monthly basis to help you cover your essential living costs.

Cover could be secured on a short-term basis, where you’ll receive payments for a maximum of 1, 2 or 5 years, or long-term basis where you could receive payments until the policy comes to an end.

How does income protection work?

Income protection works by providing you with an income while you’re unable to work.

Should you develop an illness or injury that prevents you from working, you can make a claim on your policy, wait for your deferred period to come to an end and if you’re still unable to work after this time your payments will commence.

If you recover during your deferred period, no payments will be made.

You’ll receive payments until you recover and return to work, your payment period comes to an end, your policy comes to an end or you retire (whichever happens first).

What does income protection cover?

Income protection covers your income while you’re unable to work, paying out a maximum of 70% of your earnings before tax.

You’ll receive monthly, tax-free, payments allowing you to cover your living expenses and other costs such as:

  • Rent or mortgage payments
  • Household bills
  • Daily living costs (such as the food shop)
  • Debt or loan payments (such as credit cards and car finance payments)
  • Leisure activities (such as hobbies and a gym membership)
  • Transportation costs

Do I need income protection insurance?

We’re statistically more likely to fall ill during our working life than pass away, therefore it could be beneficial to protect your income.

Particularly if you have dependents or financial commitments that need to be paid each month (such as rent or mortgage payments).

If you weren’t earning your usual income, could you keep up with your living costs?

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