Income Protection Insurance
Tax-efficient insurance to cover your costs when you can’t work
Don’t let illness or injury impact your income. Ensure you receive a regular wage until you’re back on your feet.
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Sick pay for the self-employed.
In your world, if you can’t work, you don’t earn. Whether you’re a contractor, limited company director, or self-employed professional, an unexpected illness or injury could severely impact your finances. That’s where Income Protection Insurance comes in.
What is Income Protection Insurance?
Income Protection for self-employed professionals provides a regular, reliable income (usually 50% to 70% of your earnings) if you're too ill or injured to work. It helps cover rent, mortgage payments, utilities, and daily expenses — until you're back on your feet.
Directors may be able to receive up to 80% of their income, including dividends.
How Income Protection Works
- Choose Your Monthly Benefit — Typically 50-70% of pre-tax earnings
- Pick Your Waiting Period — From 1 day to 12 months (also called a deferral period)
- Set Your Claim Period — Choose 2 years or full-term until retirement
- Select Premium Type — Level guaranteed or age-costed
Why Choose Broadbench for Income Protection?
We specialise in tailored advice for contractors, freelancers, company directors, and business owners. Whether you're looking for:
- Sick pay for contractors and freelancers
- Long-term sick pay cover
- Business owner Income Protection insurance
- Or Income Protection for limited company directors
We build the right plan around your profession, income structure, and future goals.
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Trusted by clients across the UK to protect their most valuable asset: their income.
Did You Know?
- In 2024, insurers paid out £204 million in individual Income Protection claims — a 16% increase from 2023
- 97.9% of claims were approved, making it one of the most reliable forms of insurance
- 34% of claims were due to musculoskeletal issues like back and joint pain — common among both manual and desk-based professionals
- Despite growing demand, only 14% of UK adults have Income Protection, and nearly 30% of the uninsured regret not having it
- UK workers lost an average of 4.4 days to sickness in 2024 (ONS)
How Would You Pay Your Bills If You Couldn’t Work?
A common question with uncomfortable answers.
- What if illness stopped you working for 3 months, 6 months or more?
- Could your savings cover your rent, mortgage, or business costs?
- How would your family or business cope with lost income?
This is why more people are searching for:
- Income Protection for self-employed
- How to get sick pay as a freelancer
- Income Protection vs Critical Illness — what's the difference? Read our blog here
Common Questions About Income Protection Insurance
Is Income Protection worth it for self-employed professionals?
Absolutely. Without employer sick pay, this is your only true safety net.
What’s the difference between Income Protection and Critical Illness cover?
Income Protection pays a regular wage while you're unable to work. Critical Illness pays a lump sum if you're diagnosed with a serious listed illness.
Is Income Protection tax-deductible for contractors or company directors?
Yes, if paid via your limited company. Otherwise, the payout is tax-free if premiums are paid personally.
I’m young and healthy — do I need cover?
Yes. Premiums are cheaper the earlier you buy. And no one expects to be out of work due to illness — until it happens.
Will my claim be paid?
In 2024, 97.9% of claims were paid. Broadbench only works with trusted, top-rated providers.
All statements concerning the tax treatment of products and their benefits are based on our understanding of current tax law and HM Revenue and Customs’ practice. Levels and bases of tax relief are subject to change.
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Don’t Rely on the State
- Statutory Sick Pay (SSP): £109.40/week (employed only)
- Self-employed? No SSP. You must apply for Employment and Support Allowance
Ready to Protect Your Income?
Speak to Broadbench today for trusted advice on:
- Income Protection for self-employed professionals
- Tax-efficient cover for company directors
- Sick pay alternatives for contractors
Still Not Persuaded? Check out these Resources for Freelancers, Contractors & Professionals
Explore more insights to help you decide:
- Thinking to yourself... “It’s Too Expensive”, “I’m Young, Healthy, and Single” or “I’m worried they won’t pay out...” Read our page on Why Personal Protection Matters and why these common objections miss the mark.
- Being a contractor in the UK can be challenging… check out our article about The Evolving Landscape of UK Contracting.
- Considering Critical Illness Cover? Read more here.
- Do you know the difference between Critical Illness Cover and Income Protection, find out more here.
- Contractor Tips: What expenses can you claim
- Considering Income Protection? Read our articles on Serious Sick Pay for the Self-Employed and The Safety Net you didn’t know you Needed.
- Download your FREE Broadbench Guide To Tax Savings
- Download: Broadbench - Tax and Financial Risks
Broadbench — Independent. Expert. Trusted.
#IncomeProtection #SelfEmployed #Contractors #LimitedCompanyDirectors #TaxEfficientCover #SickPayForFreelancers #Broadbench #Trustpilot5Stars
Is Income Protection really that Important?
We think so.
Unlike Critical Illness Insurance, Income Protection cover exists to keep you going while you’re ill or injured and help get you back to work faster. Not only does it provide peace of mind that you can still pay your bills each month, but it could also help you cover the cost of treatment or rehabilitation.
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Get the facts
For more information please download our guide to Income Protection.
Get the guideNeed a safety net for when you’re sick?
Fill out the form below to arrange a time to speak to an Income Protection Insurance expert.
FAQs
What is Income Protection Insurance?
Income Protection is an insurance policy that pays you a regular wage if you’re unable to work due to illness or injury. It will continue to pay you a salary until you’re ready to return to work, retire or if you pass away (dependent on the level of benefit taken).
What do I do if I change my name?
You should notify your insurer’s customer services team or your broker so that your details remain up to date. For Broadbench clients, you can update this information on our client portal.
I've moved house, how do I update my address details for my Income Protection?
You should notify your insurer’s customer services team or your broker so that your details remain up to date. For Broadbench clients, you can update this information on our client portal.
What should I do if my bank details change for my Income Protection?
You should notify your insurer’s customer services team or your broker so that your policy doesn’t lapse. For Broadbench clients, you can update this information on our client portal. Your new Direct Debit will be active within 14 days.
Why do I need Income Protection Insurance?
People in permanent jobs have the benefit of receiving sick pay. Those earning a day don’t have this luxury which is why it’s so important to have Income Protection. It gives you the peace of mind that if you become ill, you’ll be paid a regular wage so you can look after the bills until you’re well enough to return to work.
Can I get Income Protection Insurance if I am self-employed?
Yes, although it’s structured to be paid for personally rather than via a Limited Company.
Who do I notify in the event that a policyholder passes away?
You should notify the claims department of your insurer, you will find this contact info on the policy documents or their website.
How can I set up Income Protection?
If you’re looking to set up your Income Protection, our advisers can help you find the right policy for you and your family. Get in touch and protect your income!