Mother and Baby

Income Protection

Section: Finances
Family Income Protection

From just 38p a day, a £750 a month mortgage could be covered.

When you're expecting a baby or have young children, financial responsibilities become more significant. If you’re now relying on just one income, what would life be like if you lost that too? Income or earnings insurance provides you with the peace of mind you need as it provides a replacement or supplement to your income if you are unable to work.

  • The average UK household could live without their usual income for just less than 2 months / 29 days
  • The average UK household spend is £572 per week. Statutory Sick Pay is currently £94.25 a week
  • More than 50% of employees have suffered redundancy or long-term illness

Policies cover accidents, sickness and unemployment and provide monthly payments on either a short term basis (12 - 24 months) or long term (up until retirement).

The different types of policies are often confused. While the short and long term policies are designed to cover the same risks (that is to insure against accidents, sickness and unemployment which result in the reduction or half of income) and both provide a monthly payment (known as benefit) of up to 65% or your gross income to the policyholder, the amount of time the benefit is paid for differs for each of the two policy types.

Long term financial protection is known as Permanent Health Insurance or PHI and pays benefits until a specified age of retirement. Short term financial protection is known as Accident, Sickness and Unemployment or ASU and provides benefit payments for a maximum of one or two years. Both policy types pay a monthly benefit which is exempt from tax. Both policies allow you to claim government benefits which you may be entitled to while seeking employment or if you are disabled due to an accident or illness.

Reasons to Purchase Income Protection

  1. To avoid losing your home
  2. Ensures your bills are covered
  3. Allows you to avoid losing both salaries
  4. Boosts Jobseeker’s Allowance of £73.10* per week.

*Figures correct as of February 2020 according to

To get a quote, speak to one of our experts or find out more click here


 1. Can I still claim while on maternity/paternity leave? 

Yes, if an eventuality arises such as you have an accident, become sick or are made unemployed. Your cover should have been in force prior to any knowledge of this and you must have maintained your premiums whilst you are on maternity/paternity leave.

2. Can I start a policy while on maternity leave?

Yes you can cover for Accident, Sickness and Unemployment whilst on maternity leave however you mustn’t have any prior knowledge of any changes at work or impending illness. Your cover level may be affected if you are on reduced pay during your leave, so you should seek some advice.

3. I’m Self-employed, can I still claim Income Protection while claiming Statutory Maternity Allowance?

Yes. Providing you are deemed unfit for work due to accident or sickness and your premiums are all up to date. You will have based your cover on your income so you should consider whether this has been affected during your maternity leave and amend cover accordingly.

4. Can payments be deferred/suspended while I’m on maternity Leave?

Yes, if this is part of your policy agreement. It will mean you will not be able to make a claim during this period. Some insurers have a Continuous Payment premium policy which means you will continue to pay throughout any leave and will of course, therefore, continue to be covered.

5. Is voluntary redundancy covered?

No. Redundancy payments apply to imposed redundancy only.

6. Is there a cancellation policy?

When you start a policy there is a 30 day cooling off period and most insurers will refund any payments if cancellation is made within this time. After this, you are not normally tied into a policy and can therefore cancel at anytime without charge. This may differ if you have recently made a claim or are currently in a claim situatuation.

7. If I do not return to work after having my baby does my policy continue?

If you have redundancy cover this will need to be cancelled if you are no longer in paid employment. Some Accident and Sickness policies can remain in place if you are a house person but you will need some advice on the appropriate level of cover as this is likely to be reduced.

8. What is the Waiting Period?

The period of time for which a policyholder waits for their benefit. It is the combination of the excess period and the Minimum Claim Period.

Excess Period 1st payment made
Back to day one Paid on day 31 of claim back to the 1st day
30 days Paid on day 61 of claim back to the 30th day
60 days Paid on day 91 of claim back to the 60th day
90 days Paid on day 121 of claim back to the 90th day


Facts And Figures

  • Just 29 days / 2 months is the time it would take the average UK household to live without their usual income
  • More than 50% of employees have suffered redundancy or long-term illness
  • 40% of  workers admit they could not afford to live on Statutory Sick Pay currently £94.25 a week
  • the average UK household spend is £572 per week
  • 25% of British workers have been off work for periods longer than 4 weeks
  • 1 in 3 employees in Britain have been made redundant at some stage of their career
  • Men are more likely to be made redundant
  • Women are more likely to suffer long-term illness
  • One-in-10 workers experience being ill for six months or more during their working lives

* Sources: MetLife Employer Benefits Study, Centre for Economics and Business Research (Cebr), L&G Deadline to the Breadline research, Source: ONS 2010


Mother & Baby is a trading style of Bauer Media. H Bauer is authorised and regulated by FCA (Ref No. 710067)  for Limited Consumer Credit activities only. They are appointed representatives of AFL or Zenauto Limited in respect of Insurer Distribution activities. The Mother and Baby life and health insurance is provided by Assured Futures which is a trading name of Assured Futures Limited. Assured Futures Limited is authorised and regulated by the Financial Conduct Authority. Registered office: 2 Des Roches Square, Witney, OX28 4LE. Registration number: 3040737. You can confirm our registration on the FCA’s website; or by contacting the FCA on 0800 111 6768. All personal data collected is handled in accordance with our privacy policy which includes information on the use of cookies. This website should be used in conjunction with our terms of business.



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