Income protection is worth considering for employees and self-employed people who rely on their own income, particularly if you have limited or no sick pay to fall back on.
Protection & insurance
Income Protection (PHI)
Income protection, sometimes known as Permanent Health Insurance (PHI), pays a regular monthly income if illness or injury stops you working, covering the one thing most people forget to insure: their salary.
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The basics
What is income protection?
Income protection, sometimes called Permanent Health Insurance (PHI), pays a regular, usually monthly, income if illness or injury stops you working, replacing part of your salary until you can return to work, retire, or the policy ends. Unlike critical illness cover, it isn't limited to a fixed list of serious conditions, it covers a much broader range of illness and injury, including mental health and musculoskeletal problems, which are among the most common reasons people claim.
Cover is built around your own income and occupation, so the definitions used, particularly how "unable to work" is assessed, matter as much as the price.
Options available
Choices that shape your cover
We compare these against your job, budget and any sick pay or savings you already have.
Most comprehensive
Own-occupation cover
Pays out if you can't do your own specific job, even if you could do some other work. Usually the most relevant definition for skilled or specialist occupations.
Any-occupation cover
Pays out only if you can't do any job you're reasonably suited to. A higher bar to meet, but usually cheaper.
Deferred period
The waiting time between becoming unable to work and payments starting, commonly 4, 13, 26 or 52 weeks. A longer deferred period, matched to sick pay or savings, lowers the premium.
Short-term vs full-term benefit
Short-term policies pay out for a limited period per claim, such as one or two years. Full-term (long-term) policies can pay out all the way to retirement.
How it works
Getting the right cover in place
Protection is arranged alongside your mortgage application, not as a separate, forgotten task. This is how we handle it.
- 1
A free income protection review
We look at any sick pay or existing cover you have, and talk through what a real gap in income would mean day to day.
- 2
Comparing providers and terms
We compare providers across deferred periods, payment terms and how each defines 'unable to work', to match cover to your job and budget.
- 3
Live before you complete
Where cover is linked to a new mortgage, we arrange it to start on the day your mortgage completes, so there's never a gap.
Common questions
Income Protection (PHI) questions, answered
Income protection, also known as Permanent Health Insurance (PHI), is a policy that pays a regular monthly income, usually a percentage of your salary, if you're unable to work due to illness or injury.
This depends on the policy. Some pay out until you return to work, retire, or the policy ends, subject to the terms and any deferred period you choose.
No. Critical illness cover pays a one-off lump sum on diagnosis of a specified illness. Income protection pays an ongoing income for as long as you're unable to work, for a broader range of reasons.
Own-occupation cover pays out if you can't do your own specific job, even if you could do some other work. Any-occupation cover only pays out if you can't do any job you're reasonably suited to, which is a higher bar to meet and usually cheaper.
The deferred period is the waiting time between becoming unable to work and payments starting, commonly 4, 13, 26 or 52 weeks. A longer deferred period, often matched to sick pay or savings, usually lowers the monthly cost.
Yes, and it's often more important for self-employed people, since there's usually no employer sick pay to fall back on. Cover is based on your income, so we'll look at how that's evidenced.
Cost depends on your age, health, occupation and the level of cover, but policies can often be arranged from a few pounds a month. We’ll compare providers to find an affordable fit.
Who this is for
Protecting the income your mortgage relies on
Providers we compare
Whole-of-market, not tied to one insurer
We compare income protection across the UK's leading providers, including:
Provider panel shown for illustration and reviewed regularly; availability depends on your circumstances and the specific product. Logos are the property of their respective owners and do not imply endorsement of City Mortgage Solutions Limited.
Example scenario
Illustrating how this can help
A worked example of the kind of outcome income protection is designed for. This is an illustrative scenario, not a specific client, and every case is assessed on its own facts.
Example, not a real client
Off work for months after a back injury
A self-employed plumber took out income protection with an own-occupation definition and a 13-week deferred period, matched to how long his savings could cover his bills. Eighteen months later, a back injury left him unable to lift or kneel, making his usual work impossible, even though he could in theory have done a desk-based job. Because the policy used an own-occupation definition, his claim was accepted and he received a monthly income for over a year while he recovered and gradually returned to lighter duties, keeping his mortgage payments up to date throughout.
- Situation
- Self-employed plumber, no employer sick pay
- Cover arranged
- Own-occupation income protection, 13-week deferral
- Outcome
- Monthly income paid for over a year during recovery
Related cover
Other cover you might need
Life assurance
A tax-free lump sum, or an ongoing income, to your family if you die during the policy term, so your mortgage and household costs are covered.
Critical illness cover
A tax-free lump sum if you're diagnosed with a specified serious illness, such as cancer, heart attack or stroke, while you're still alive, giving you space to recover without money worries.
Private medical insurance
Faster access to private diagnosis and treatment, so you're not waiting on an NHS list, with the ability to choose where and when you're seen.
Buildings & contents insurance
Cover for the structure of your home, often a condition of your mortgage, and for the possessions inside it.
Business insurance
Protection for self-employed people, contractors and small business owners, and the income their mortgage relies on.
Guides
Income Protection (PHI) guides
What our customers say
Reviewed by real clients on Google
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