How much does income protection cost at 25?
For a healthy non-smoking 25-year-old office worker, a long-term income protection policy paying £1,500/month with a 13-week deferred period typically costs around £18–£28 per month.
What level of cover do I need at 25?
Income protection typically replaces 50–70% of your gross income. Work out your essential monthly outgoings (mortgage/rent, bills, food) — that's your minimum cover requirement. For most people at 25, this is £1,000–£2,500 per month.
What deferred period should I choose?
The deferred period is the waiting time before payments start. The right choice depends on how long you could manage financially without income:
- No savings or sick pay → 4-week deferred period
- 3 months of savings or sick pay → 13-week deferred period (most popular)
- 6+ months of savings or sick pay → 26-week deferred period
Own occupation vs any occupation at 25
Always aim for "own occupation" cover — it pays if you can't do your specific job. This is especially important in your 25s when your career and earnings are at a key stage. "Any occupation" cover is much harder to claim on.
Long-term vs short-term IP at 25
Long-term IP (paying to retirement) is significantly better value than short-term (paying for 1–2 years). At 25, a long-term policy bought now locks in current health-based premiums for potentially decades of cover.
Frequently Asked Questions
Yes — at 25, you likely have significant financial commitments and many working years ahead. Income protection is one of the most valuable financial products available.
Some policies include an indexation option that increases cover in line with inflation. You can also take out a new policy, though you'll be older and any new health conditions since the original application will be assessed.