When comparing income protection policies, most people look at the monthly premium first. That is understandable and still the wrong starting point. Whether anything gets paid when it matters is decided not by the price but by the wording of the policy.
What actually stops people working
Analysts assess every year which diagnoses lie behind claims. According to the MORGEN & MORGEN review for 2026, around 39 percent of cases are nervous and mental illnesses. That makes them the most common cause by a wide margin.
Musculoskeletal conditions follow at about 17.6 percent, cancer at around 16.3 percent.
The exact percentages vary between analysts and depend on how diagnoses are grouped. The ranking has been stable for years, though, and the share of mental causes is rising.
That contradicts the widespread image of income protection as something for people in physically demanding jobs after an accident. The reality is less dramatic and affects more people than most assume.
The four clauses that decide
1. Abstract referral
The single most important clause. It allows the insurer to say: you can no longer do your job, but in theory you could do something else matching your training and social standing. So we will not pay.
A good contract waives abstract referral entirely. That is standard in many tariffs today, but not in all, and certainly not in older contracts.
2. Prognosis period
From what point do you count as unable to work? The market standard today is: when you are expected to be unable to work for at least six months. Older or weaker contracts use longer periods, which raises the bar considerably.
Also check retroactive recognition: if someone has already been unable to work for six months without interruption, the benefit should apply from day one, not only from the date of recognition.
3. Review
The insurer may check whether the incapacity still exists. That is legitimate. What matters is how tightly the rules are drawn and whether an improvement in health alone can end the payment.
4. Duties to notify and cooperate
Some contracts demand extensive cooperation and attach deadlines. Missing a deadline while ill risks a reduction in benefits. Short, clear rules are better than long ones here.
Where most applications actually fail
Not on price, but on the health questions.
Anyone who forgets or plays down a pre-existing condition when applying risks being accused of a breach of disclosure. The insurer may then be able to withdraw from the contract, possibly years later, exactly when the money is needed.
So the order matters: first check your own records, then make an anonymous pre-enquiry, then apply. Reversing that order leaves a trace after a rejection that makes further applications harder.
Already have a policy? Bring it along. In ten minutes we can see whether abstract referral is excluded and how the prognosis period is worded. Those are the two sentences everything later depends on.
Have your policy checked →When income protection does not work
For physically demanding jobs, for example in construction or the skilled trades, income protection is often expensive, comes with exclusions, or is simply unavailable. These occupations fall into the highest risk classes.
One possible alternative is basic ability cover. It pays when defined basic abilities are lost, such as walking, lifting, kneeling or seeing. It is usually cheaper and asks fewer health questions.
The difference is significant, though, and often glossed over: basic ability cover protects less. As a rule it does not pay for mental illness, which is precisely the most common cause of being unable to work.
It is therefore not an equivalent solution but a compromise. For someone who would otherwise get no cover at all it can still make sense. What matters is knowing exactly what you are buying.
- Abstract referral is fully excluded
- The prognosis period is six months, not longer
- There is retroactive recognition from day one
- The agreed benefit covers fixed costs and retirement saving
- All health questions were answered fully at application
- The benefit rises with inflation once being paid
Anyone unsure about one of these points should check. Not when a claim arises, but now, while changes are still possible.
What I do in the consultation
I look at the wording first, not the premium. Only once it is clear which contracts would actually hold do we talk about price. A cheap policy with weak terms helps nobody when it matters.
And if you already have cover: bring it. Older contracts are sometimes better than their reputation, particularly regarding health checks and premium stability. Cancelling would then be an expensive mistake.
Common questions
When is income protection worth taking out? As early as possible, because health questions become more awkward with age and the premium rises with entry age. There are dedicated entry tariffs for pupils and apprentices.
Is the state reduced-earning-capacity pension not enough? As a rule, no. It requires that you can no longer work in any occupation, not just your current one, and the amount falls well short of a normal income.
How high should the benefit be? As a guide: high enough that your fixed costs and your retirement saving can continue. The actual figure comes from your household budget, not from a rule of thumb.
