What is Income Protection?

Wealth Canopy has prompted some thoughtful conversations and brings along with it our first featured guest perspective from Naomi Greatorex from Heath Protection, who answers the question: what is income protection, and do I need to consider this?

What is Income Protection?

Income protection is designed to provide a monthly income if you are unable to work due to sickness, accident, or disability. As most people rely on their salary to cover their mortgage or rent and everyday bills, it is important to consider how long savings would last if you could not work.

In 2024, 148 million working days were lost to sickness or injury, yet many people rely solely on employer sick pay or statutory sick pay, which is just £116.75 per week for up to 28 weeks.

Understanding what support you would receive and for how long is essential, particularly if you are self-employed. Income protection can offer additional financial security, with options available to suit different budgets and needs.

Ask Acacia

Q: "Which decade is the most important in financial planning?"

A: All of them. Every decade plays a different role and each one matters. The best time to start was yesterday. The next best time is now.

• Your 20s and 30s. This is when the power of compounding works hardest for you. Starting early — even with small amounts — can make a remarkable difference over time. Building good habits around saving, budgeting, and protecting your income sets a foundation for everything that follows.
• Your 40s and 50s. Often your peak earning years, but also a time of growing financial complexity. Mortgages, school fees, ageing parents, career changes — this is when a clear financial plan becomes essential to balance competing priorities and keep you on track.
• Your 60s and beyond. The focus shifts to making the most of what you've built. Decisions around pensions, drawdown strategies, tax efficiency, and legacy planning become front and centre. The choices made here can define your quality of life in retirement.

Picture This

£100,000 of cover costs a lot less at 30 than at 50. The question isn't just "Can I afford it?" — it's "Can I afford to wait?"

The cost of income protection rises significantly with age. What might cost just a few pounds a month in your 30s could be several times more expensive by your 50s — and that's assuming you're still in good health and eligible for cover. Acting early locks in lower premiums and ensures you're protected during your most financially productive years.

"Every decade plays a different role and each one matters. The best time to start was yesterday. The next best time is now."