For many people, income protection is one of those “nice to have” policies that often gets pushed to the bottom of the priority list. But what happens if illness or injury stops you from working for several months — or longer? Without income protection, the financial and emotional consequences can be far greater than most people realise.
This guide explores the real cost of not having income protection, why it matters for households across the UK, and how to decide whether it’s right for you.
What Is Income Protection?
Income protection is an insurance policy that pays out a regular, tax-free income if you’re unable to work due to illness, injury or disability. Unlike critical illness cover, which provides a lump sum on diagnosis of specific conditions, income protection is designed to cover day-to-day living costs until you’re able to return to work — or until retirement, depending on the policy.
The Financial Risks of Having No Cover
Going without income protection may feel like a way to save money, but it could leave you vulnerable to serious hardship:
- Loss of monthly income – Most UK employers offer only limited sick pay, often just Statutory Sick Pay (SSP) of £118.75 per week (2025 rates). For many households, this falls far short of covering rent or mortgage payments.
- Savings depletion – Research shows that many UK households have less than three months’ savings. Without protection, these can be used up quickly.
- Reliance on state benefits – While some government support is available, it rarely replaces a full salary and often comes with strict eligibility criteria.
- Risk to homeownership – Missing mortgage or rent payments can put your home at risk, creating further stress during an already difficult time.
The Hidden Emotional and Lifestyle Costs
It’s not just about the money. The impact of losing your income can also bring:
- Stress and anxiety around paying bills and supporting dependents
- Lifestyle changes, such as cutting back on essentials or family activities
- Relationship strain, as financial pressures take their toll
- Career setbacks, if recovery means taking extended time out of work
Common Misconceptions About Income Protection
Many people skip income protection because of misunderstandings:
- “My employer’s sick pay will cover me.” – Few employers pay long-term sick pay beyond a couple of months.
- “I’ve got savings.” – Savings might bridge short gaps, but rarely last for months or years.
- “It’s too expensive.” – Policies can be tailored to fit budgets, with choices around waiting periods and cover amounts.
- “I’m young and healthy.” – Accidents and unexpected illness can affect anyone, regardless of age.
The Real Value of Income Protection
For many households, income protection acts as a safety net that provides peace of mind. Key benefits include:
- Protecting your home – Covering mortgage or rent during illness or injury
- Stability for your family – Ensuring household bills and commitments are met
- Flexibility – Policies can be designed to fit your circumstances and budget
- Reassurance – Knowing you won’t have to rely solely on state benefits
Final Thoughts
The real cost of not having income protection isn’t just financial — it’s the stress, uncertainty and potential loss of security for you and your family.
At Argyll Drummond, we help clients understand the options available and tailor policies to suit their needs and budgets. Speaking to one of our advisers means you’ll have clear, expert guidance on whether income protection is right for you — and the confidence of knowing your financial future is safeguarded.
Get in touch with our team today to explore how income protection could give you and your family peace of mind.