What does income protection actually cover?
The conditions that make up most claims, the common exclusions, and why honesty on the application form is everything.
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In short
- Covers loss of income from illness or injury, physical or mental.
- Mental health and musculoskeletal problems are the most common claims.
- Doesn’t cover redundancy. Undisclosed conditions are the main reason claims fail.
What’s covered
Income protection pays when a medical condition stops you doing your job. There isn’t a list of qualifying illnesses. If your GP or a specialist confirms you’re unable to work, and you meet the policy’s definition of incapacity, you can claim.
In practice the biggest categories of claim are mental health conditions such as stress, anxiety and depression; musculoskeletal problems such as back injuries and joint conditions; and cancer. Recovery from surgery and serious accidents also feature. Industry figures show insurers pay the large majority of claims they receive.
What’s usually excluded
Redundancy and unemployment aren’t covered. Neither are conditions you already had, unless the insurer specifically agreed to include them. Self-inflicted injury, injuries from criminal activity and, on some policies, hazardous sports or work abroad may be excluded too.
Some policies exclude or limit mental health claims. This is worth asking about directly, because mental health is the single most common reason people claim.
The honesty rule
When you apply you’ll answer questions about your health, lifestyle and occupation. Answer them completely. If a claim is later found to relate to something you didn’t disclose, the insurer can reduce the payout or decline the claim entirely. This is the main reason claims are rejected, and it’s entirely avoidable.
If you’re unsure whether something counts, tell the broker. It’s their job to present your circumstances to insurers properly.
How claims work
You notify the insurer, provide medical evidence, and once the deferred period has passed the monthly payments start. Insurers will usually check in periodically while you’re claiming and many offer rehabilitation support to help you return to work. Payments stop when you go back, when the policy term ends, or when the maximum payment period is reached.