Why Accountants Need Income Protection
Accountancy may be an office-based profession, but you are not immune to illness or injury. Cancer, heart conditions, mental health problems, and musculoskeletal issues can strike anyone regardless of occupation. If you cannot work, your income stops – whether you are employed or self-employed.
Employed vs Self-Employed Accountants
| Factor | Employed (Big 4 / mid-tier) | Self-Employed / Partner |
|---|---|---|
| Employer sick pay | Typically 3–6 months | None |
| Group IP | Some firms provide it | Must arrange personally |
| Income at risk | Salary only | Entire practice income |
| IP urgency | Check employer benefits first | Essential |
If your employer provides group income protection, check the terms carefully. Many group schemes only pay for 2–5 years, not until retirement. You may need a personal top-up policy.
Key Risks
- Stress and burnout – High workloads, especially during tax season and audit periods
- Mental health – Depression and anxiety are common in high-pressure professional roles
- Cancer – The leading cause of IP claims across all occupations
- Musculoskeletal – Back and neck problems from prolonged desk work
Tax-Efficient Cover for Partners
If you are a partner in an accountancy practice or operate through a limited company, consider executive income protection. The company pays the premiums as a tax-deductible business expense, potentially saving 40%+ compared to a personal policy.
Frequently Asked Questions
Yes. Standard risk, competitive premiums.
A 30-year-old earning £35k: around £25–45/month for 60% income replacement.