Why Income Protection Matters More Than Your Netflix Subscription

Let me ask you something: Do you pay for pet insurance? Netflix? Amazon Prime? Your daily coffee from Costa or Starbucks?

Most of us do. We happily spend £10, £15, even £20 a month on these things without thinking twice.

But here’s a question that might make you uncomfortable: If you couldn’t work tomorrow because of illness or injury, how would you pay your mortgage? Your bills? How would you keep your family fed and the lights on?

Income protection insurance might not be as exciting as your latest Netflix binge, but it could be the difference between keeping your home and losing everything if the worst happens.

I’m a mortgage and protection adviser based in South Yorkshire, and I work with people every day who don’t realise how vulnerable they are. Let’s talk about why protecting your income might be the most important financial decision you’ll ever make.

What Actually Is Income Protection Insurance?

Income protection insurance does exactly what it says on the tin – it protects your income if you can’t work due to illness or injury.

Here’s how it works:

If you become unable to work because of sickness or an accident, income protection pays you a regular monthly income (usually up to 50-70% of your salary) until you’re well enough to return to work, the cover period ends or until you reach retirement age.

It’s not the same as critical illness cover (which pays a lump sum if you’re diagnosed with a specific serious illness). Income protection covers a much wider range of situations – everything from a bad back that stops you working, to stress and anxiety, to recovering from surgery.

What Does It Cover?

Income protection can pay out for:

• Physical illnesses (cancer, heart disease, strokes)
• Injuries (broken bones, accidents)
• Mental health conditions (stress, depression, anxiety)
• Chronic conditions (arthritis, back problems)
• Recovery from surgery

Basically, if you can’t do your job because of your health, it’s got you covered.

Why You Need It (Even If You Think You Don’t)

“It won’t happen to me.”

I hear this all the time. And I get it – nobody wants to think about getting seriously ill or injured. But here are some facts that might change your mind:

The Statistics:

• 1 in 7 (ONS Labour Market Overview; verify latest risk modelling) people in the UK will be off work for 6 months or more during their working life due to illness or injury
• The average claim length for income protection is around 6 years (ABI Claims Duration Report, Jul 2025), not weeks or months – years!
• Mental health conditions are now one of the leading causes of long-term absence from work
• Statutory Sick Pay is the only requirement for employers to pay employees in England if they are off sick due to illness or accident. Many employers will pay more than this, check your employment contract.

The Reality:

If you’re off work for six months, can you survive on:

• Statutory Sick Pay; currently £118.75 (DWP SSP Rate, Apr 2025) per week – that’s about £505 a month?
• Your savings (if you have any)?
• Help from family?

For most people – the answer is no. Not when you’ve got a mortgage, council tax, car payments, food bills, and everything else to pay for.

But What About Other Insurance? Haven’t I Already Got Cover?

You might have life insurance, critical illness cover, or payment protection on your credit cards. But none of these do what income protection does.

Let’s Compare:

Life Insurance:
Only pays out if you die. Doesn’t help if you’re alive but can’t work.

Critical Illness Cover:
Only pays out for specific serious illnesses (like cancer, heart attack, stroke). Doesn’t cover things like back problems, mental health issues, or recovery from surgery.

Mortgage Payment Protection Insurance (MPPI):
Usually only covers your mortgage payments for 12-24 months maximum. What happens after that?

Sick Pay from Your Employer:
Many employers only offer 3-6 months of full or partial sick pay. Then what?

Universal Credit:
The benefits system can help, but it’s means-tested, limited, and often not enough to cover your existing financial commitments.

Here’s the Brilliant Thing About Income Protection:

It provides a monthly benefit you can use for essential costs, subject to policy limits and terms.

Your mortgage, your life insurance premiums, your critical illness cover, your car insurance, your food shopping, your bills – everything. Because it replaces your income, you can use it however you need to.

It’s the safety net that catches you when everything else fails.

The Cost: Less Than You Think

Now, I know what you’re thinking: “This sounds expensive.”

But let’s put it in perspective. Here’s what many people spend each month without thinking twice:

Monthly Subscriptions & Expenses:

• Netflix: £10.99
• Amazon Prime: £8.99
• Spotify: £11.99
• Gym membership: £20-40
• Pet insurance: £15-30
• Daily coffee: £3 x 5 days = £60/month
• Takeaways: £30-50

Total: Easily £150+ per month on non-essentials

Income Protection?

For a healthy 30-year-old earning £30,000, income protection might cost around £20-40 per month depending on:

• Your age
• Your occupation
• Your health
• How much cover you want
• How long you want to wait before it pays out (the “deferred period”)

That’s less than most people spend on coffee in a week.

Would you rather have Netflix… or keep your house if you can’t work?

I’m not saying you shouldn’t enjoy these things. I’m saying it’s about priorities. And protecting your ability to pay your mortgage and feed your family should probably come first.

Example: Mark’s Story

Mark was a joiner from Rotherham. Fit, healthy, early 40s. He had life insurance and critical illness cover because his mortgage adviser (me) had persuaded him when he bought his house.

But he didn’t have income protection. He thought it was unnecessary. “I’m self-employed,” he said. “I’ll just work through anything.”

Then he fell off a ladder at work and badly broke his leg. He needed surgery, months of physio, and couldn’t work for nearly eight months.

No income. But his mortgage still needed paying. His van finance still needed paying. His family still needed feeding.

He had some savings, but they ran out after three months. His wife had to ask her parents for help. They got behind on bills. The stress nearly broke them.

When he finally came back to see me, he said, “I wish I’d listened to you about income protection. It would’ve cost me less than my daily bacon sandwich from the café.”

The first thing we did afterwards was set up income protection. He’ll never be without it again.

How Income Protection Actually Works in Practice

Let’s walk through a real example so you can see how it works:

Sarah’s Situation:

• Age: 32
• Job: Primary school teacher
• Salary: £35,000
• Monthly take-home pay: Around £2,400

Her Income Protection Policy:

• Monthly benefit: £1,680 (70% of her gross salary)
• Deferred period: 6 months (she’ll use sick pay first)
• Monthly premium: £35

What Happened:

Sarah was diagnosed with severe anxiety and depression. She tried to keep working but eventually had to take time off. Her sick pay ran out after six months.

Her income protection kicked in after the 6-month deferred period and paid her £1,680 every single month for the 24 months she was off work.

That money paid for:

✓ Her mortgage
✓ Her car finance
✓ Her other insurance premiums
✓ Her bills
✓ Food and living costs

She didn’t lose her house. She didn’t get into debt. She could focus on getting better without the added stress of worrying about money.

When she returned to work, the payments stopped. Job done.

Total cost of her premiums over 24 months: £210 (only 6 months of payments due as the policy had a waiver of premium after six months)

Total she received in benefits: £30,240

Worth it? Absolutely.

Understanding the Key Features

When you’re looking at income protection, here are the important bits to understand:

1. Benefit Amount

This is how much you’ll receive each month. Usually 50-70% of your gross salary (before tax).

Why not 100%? Because insurers don’t want to give you an incentive not to return to work. But 50-70% is usually enough to cover your essential bills.

2. Deferred Period

This is how long you wait before the insurance starts paying out. Common options are:

• 4 weeks
• 8 weeks
• 13 weeks (3 months)
• 26 weeks (6 months)
• 52 weeks (1 year)

The longer you wait, the cheaper the premium.

Most people choose 3-6 months because they’ll use their employer’s sick pay first.

3. Benefit Period

How long will it pay out for?

• Until you return to work
• Until you reach retirement age
• For a fixed period (e.g., 2 years, 5 years)

Full term (until retirement) is usually best, even if it costs a bit more.

4. Own Occupation vs Any Occupation

Own occupation: Pays out if you can’t do your specific job
Any occupation: Only pays out if you can’t do any job

Always go for “own occupation” if you can afford it. You don’t want to be a surgeon who can’t operate being told you could work in a call centre, so no payout.

5. Guaranteed Premiums

With guaranteed premiums, your cost stays the same for the life of the policy (though it might increase with inflation).

Without guaranteed premiums, the insurer can review and increase your premiums as you get older or if lots of people claim.

Guaranteed is better – you know what you’re paying.

What About If You’re Self-Employed?

If you’re self-employed, income protection is even more important because you don’t have an employer’s sick pay to fall back on.

If you can’t work, your income stops immediately.

How It Works for Self-Employed People:

Insurers will look at your average earnings over the past 2-3 years (based on your tax returns or accounts) and base your benefit amount on that.

The cost is usually similar to employed people, sometimes a bit more depending on what you do.

If you’re a plumber, electrician, builder, hairdresser, or running your own business – you need this more than anyone.

Common Questions (and Honest Answers)

“What if I have a pre-existing condition?”

You’ll need to declare it when you apply. The insurer might:

• Exclude that specific condition from cover
• Charge you a higher premium
• Offer you cover as normal (if it’s minor or well-controlled)

But don’t let this put you off applying. You might still get cover for everything else, which is better than nothing.

“What if I lose my job?”

Income protection doesn’t usually cover redundancy or unemployment – only illness or injury that stops you working.

But some policies include redundancy cover as an optional extra.

“Can I cancel it if I can’t afford it?”

Yes, but you’ll lose your cover. And if you try to take it out again later when you’re older or less healthy, it’ll cost more or you might not be able to get it at all.

Better to reduce the amount of cover than cancel completely.

“Will I definitely get paid out if I claim?”

As long as you’ve been honest on your application and you meet the policy terms (genuinely unable to work due to illness/injury), yes.

Insurers aren’t looking for reasons to refuse claims – they’re looking to support genuine cases.

Comparing the Costs: What Would You Rather Lose?

Let’s be brutally honest about priorities.

If you lost your income tomorrow for six months, which of these would you rather give up?

Option A:
❌ Your home (because you can’t pay the mortgage)
❌ Your car (because you can’t afford the finance)
❌ Your heating (because you can’t pay the bills)
❌ Food on the table

Option B:
❌ Netflix
❌ Your daily coffee
❌ Takeaways
❌ Your gym membership

I’m guessing you picked Option B.

Income protection costs about the same as these non-essentials, but it protects everything that actually matters.

How to Get Income Protection (The Simple Way)

Here’s what we’ll do together:

Step 1: Have a Chat

We’ll talk about your situation – your job, your income, your outgoings, your family circumstances.

Step 2: Work Out What You Need

How much would you need each month to cover your essentials? That’s your benefit amount.

Step 3: Choose Your Options

Deferred period, benefit period, any extras you want.

Step 4: Get Quotes

I’ll search the whole market and find you the best cover at the best price.

Step 5: Apply

I’ll help you with the application and make sure everything’s filled in correctly.

Step 6: You’re Covered

Policy sorted. Peace of mind achieved.

And it won’t cost you a penny for my advice – I’m paid by the insurance company when your policy starts, not by you.

What If You’ve Already Got Some Cover Through Work?

That’s brilliant – but check what it actually covers.

Most employer schemes:

• Only pay full salary for 3-6 months
• Might drop to half pay or statutory sick pay after that
• Stop completely if you leave the company
• Don’t cover you if you’re made redundant and then become ill

Personal income protection is yours. It moves with you if you change jobs, and it pays out for as long as you need it (up to retirement if necessary).

Think of work cover as a nice extra, not your main safety net.

Why Now? Why Not Wait?

Three reasons:

1. You’re Healthy Now

The healthier you are when you apply, the cheaper it is and the easier it is to get cover. Wait until you’ve had health issues and it gets harder.

2. You’re Younger Now

Insurance costs more as you get older. Lock in a lower price now.

3. You Don’t Know When You’ll Need It

Nobody plans to get ill or have an accident. That’s why it’s called insurance.

Waiting until you “need it” is too late – you can’t get insurance once the thing you want to insure against has already happened.

What Happens If You Don’t Have It?

Let me paint you a picture of what happens to people who don’t have income protection when they can’t work:

Month 1-3: You’re on sick pay from work. You’re okay financially, but worried.

Month 4-6: Sick pay reduces or stops. You start using savings (if you have any). You cut back on everything non-essential.

Month 7-9: Savings are running low or gone. You start missing payments. Credit card debt builds up. You’re stressed about money on top of being unwell.

Month 10-12: You’re behind on your mortgage. Bills are piling up. You might be facing repossession. Your family is struggling.

Beyond: You might lose your home. Your credit rating is destroyed. The financial stress makes your health worse. It can take years to recover financially.

I’ve seen this happen to people right here in South Yorkshire. It’s heartbreaking, and it’s preventable.

Your Next Steps

If you’re reading this and thinking “I should probably sort this out,” you’re right.

Here’s what to do:

Option 1: Get in Touch

Call me, message me on Facebook or Instagram, or drop me an email. Let’s have a chat about your situation.

Option 2: No Pressure

I’m not going to pressure you into anything. We’ll talk through your options, get some quotes, and you can decide what’s right for you.

Option 3: Get Covered

Once you’re happy, we’ll get your application sorted and you’ll have peace of mind knowing you and your family are protected.

There’s no cost for my advice – you only pay the insurance premium itself.

A mortgage loan will be secured against your home or property.

Final Thoughts

I know insurance isn’t exciting. I know you’d rather spend your money on Netflix, coffee, or nights out.

But here’s the thing: those things are nice to have. Income protection? That could save your home, your family’s security, and your entire financial future.

For the cost of a few coffees a week, you can make sure that if the worst happens, you’ll be okay.

Whether you’re in South Yorkshire or nationwide – I’m here to help you protect what matters most.

Don’t wait until it’s too late. Let’s chat.