Ever thought, “What would I do if I got sick or lost my income unexpectedly?” If that made you stop and think, you’re not alone—most of us aren’t fully prepared for that kind of financial hit. That’s exactly where income protection insurance comes into play. And when it comes to breaking down the details in a clear, no-nonsense way, Money Saving Expert Martin Lewis is one of the most trusted voices out there.
In this guide, we’ll walk through everything you need to know about income protection insurance, including why it matters, how it works, and what the Money Saving Expert says you should watch out for—so you can protect your income without overspending or getting stuck with a policy that doesn’t deliver when you need it most.
1. What Is Income Protection Insurance?
Think of income protection insurance as your personal financial safety net. If you get sick or injured and can’t work, this type of cover steps in and pays you a regular income—usually up to 60% of your usual earnings—until you’re able to work again or reach retirement age.
For example, if you normally earn £2,000 a month and you’re off work due to illness, your income protection plan might pay out around £1,200 each month. That money can help you keep up with essentials like rent, utility bills, and groceries.
As the income protection insurance Money Saving Expert guide explains, this kind of cover is especially crucial if your job doesn’t offer long-term sick pay. Many people don’t think about it until it’s too late—so planning ahead really matters.
2. What Does Martin Lewis Say About Income Protection Insurance?
When it comes to income protection insurance, Money Saving Expert Martin Lewis doesn’t mince words—he strongly recommends it, especially if you’re self-employed or your job doesn’t come with solid sick pay benefits. In fact, he’s called it “the forgotten insurance” because most people don’t think about it until they’re in crisis mode.
Martin has shared real-life examples to drive the point home. Like the case of a builder who injured his back and couldn’t work for months. Without income protection, he nearly lost his home. A small monthly premium could’ve protected his income and eased the financial pressure during recovery.
👉 According to the income protection insurance Money Saving Expert guide, this cover isn’t just smart—it’s essential for anyone whose lifestyle depends on a regular paycheck.
3. How Much Does Income Protection Insurance Cost?
The cost of income protection insurance isn’t one-size-fits-all—it depends on factors like your age, job, health, and how long you’re willing to wait before the payments kick in (known as the “deferment period”). But generally, most people can expect to pay between £10 and £30 per month.
For example, a healthy 30-year-old office worker might get a policy for around £15/month that covers up to 60% of their salary, starting after a 3-month waiting period.
👉 The income protection insurance Money Saving Expert guide highlights that while it may seem like an extra expense, the peace of mind it brings—and the financial security during tough times—makes it well worth considering, especially when tailored to your personal needs and budget.
4. What to Look for When Choosing a Policy
Choosing the right income protection insurance isn’t just about finding the cheapest premium—it’s about getting the right coverage for your lifestyle. According to the income protection insurance Money Saving Expert advice, there are a few key things to check before you commit:
✅ How long does it pay out? Some policies cover you until you recover, while others only last for a set number of years.
✅ What’s the waiting period? A shorter wait means you get money faster, but it also costs more.
✅ Is it “own occupation”? This is a big one. It means the policy pays out if you can’t do your specific job, not just any job.
Example:
Let’s say you’re a graphic designer and develop chronic back pain. If your policy is “own occupation,” you’ll get paid because you can’t do your exact job. But if it’s not, the insurer might argue you can still work in a different role—like as a cashier—and deny your claim.
5. Where to Buy It (Money Saving Expert Tips)
When it comes to buying income protection insurance, you’ve got two main options: go directly to an insurer or use a broker. According to the income protection insurance Money Saving Expert guide, using a specialist broker is usually the smarter move.
Why? Because brokers can compare multiple insurers for you, explain the fine print, and help you avoid policies with sneaky exclusions—all at no extra cost.
Martin Lewis and his team recommend a few trusted brokers who don’t charge you a fee and work with reputable insurers:
These brokers specialize in protection insurance and are great at matching you with the right policy based on your needs, job type, and budget.
👉 Pro Tip: Always ask your broker if the policy includes “own occupation” coverage and check how long the payouts last. It’s not just about cost—it’s about proper protection.
6. Income Protection vs. Critical Illness Cover: What’s the Difference?
A lot of people confuse these two, but they’re actually very different—and understanding the difference can help you avoid major financial stress. According to income protection insurance Money Saving Expert advice, here’s a quick breakdown:
Income Protection = gives you a monthly payout if you can’t work due to illness or injury.
Critical Illness Cover = gives you a one-time lump sum if you’re diagnosed with a serious condition like cancer, stroke, or heart disease.
Example:
Let’s say you’re diagnosed with cancer and need 6 months off work. Income protection would pay you a monthly income to cover your rent, groceries, and bills while you recover. On the other hand, critical illness cover might give you £25,000 upfront—but once that’s gone, there are no more payouts.
👉 That’s why many people choose to have both types of cover—so they get the monthly support they need and a financial cushion during serious health challenges.
Choosing the right protection depends on your job, savings, and family needs—but understanding the difference is the first smart step.
7. Should You Get Income Protection Insurance?
Here’s the honest truth: if losing your income would seriously affect your ability to pay for essentials like rent, food, or bills — then yes, income protection insurance is something you should absolutely look into.
According to the income protection insurance Money Saving Expert guide, Martin Lewis puts it simply: “If you couldn’t survive financially without your income, then protect it like you do your phone or your car.”
Think about it:
Many of us happily spend £10/month insuring a phone… but forget to protect the salary that pays for that phone, the rent, the groceries, and everything else.
Example:
Let’s say you’re self-employed or your employer doesn’t offer much sick pay. If illness or injury forces you to stop working, income protection can keep money coming in — so you’re not stressing about how to cover next month’s expenses.
It’s not about being overly cautious. It’s about peace of mind, knowing that if life throws a curveball, your finances won’t crash along with it.
Final Thoughts
The message from the income protection insurance Money Saving Expert guide is simple and powerful: if being off work due to illness or injury would put your finances at risk, this kind of cover is absolutely worth a look.
It’s not about being scared of “what ifs” — it’s about giving yourself peace of mind and a safety net.
Martin Lewis and the MoneySavingExpert team have laid out the facts. Now it’s your move. Taking a little time to explore the right policy could make all the difference if life throws something unexpected your way.
Because when your income is protected, your future feels a whole lot more secure.
See Also: Money Saving Expert Mortgage Guide: Smart Home-Buying Tips Backed by Martin Lewis