What Makes the Best Income Protection Policy?
The quality of an IP policy is determined primarily by:
- Policy definition: 'Own occupation' (pays if you can't do your specific job) is best. 'Any occupation' (only pays if you can't do any job) is far less valuable.
- Benefit amount: Most policies pay up to 60–70% of your gross income
- Deferred period: The waiting period before payments start (1, 3, 6, 12 or 24 months)
- Maximum claim duration: Short-term (1–5 years) or long-term (to retirement)
- Inflation protection: Whether benefits increase with inflation during a claim
- Breadth of conditions covered: Including mental health and musculoskeletal conditions
LV= (Liverpool Victoria) — Best Overall IP
Definition: Own occupation | Claims payout rate: 92%
LV= are widely regarded as the gold standard for income protection in the UK. Their policy definitions are among the most generous in the market, their back-to-work support is outstanding, and they cover mental health conditions including stress and anxiety without a separate premium. Their premiums are competitive for most occupational classes.
Aviva — Best for Breadth of Cover
Definition: Own occupation | Claims payout rate: 93%
Aviva's IP policies include excellent back-to-work and rehabilitation support, with access to physiotherapy, counselling, and specialist medical advice during a claim. Their mental health cover is comprehensive and they are competitive across most occupations.
Legal & General — Best Value for Office Workers
Definition: Own occupation | Claims payout rate: 91%
Legal & General offer very competitive premiums for office-based and professional occupations (Class 1 and 2). Their policies are straightforward and competitively priced, making them an excellent choice for professionals in lower-risk occupations.
Royal London — Best for Self-Employed
Definition: Own occupation | Claims payout rate: 92%
Royal London have particular strength in insuring self-employed individuals with variable income. Their policies allow for flexible sum assured that can be adjusted as income changes, and their underwriting of self-employed cases is knowledgeable.
Frequently Asked Questions
LV= are widely regarded as the market leader for IP quality and policy definitions. Aviva are strong for breadth of cover including mental health. Legal & General are best value for standard office-based occupations. Royal London excel for self-employed applicants. The best provider for you depends on your specific occupation, income, and health history.
Own occupation income protection pays out whenever you cannot perform the specific duties of your own job due to illness or injury. It is the most generous and most valuable policy definition. Always prefer own occupation over ‘any occupation’ definitions, which only pay if you cannot do any job — a far higher bar that rarely results in a payout.