The Best Income Protection Cover in the UK

In our view there are two key things to look for in an Income Protection Policy: what percentage of claims does the insurer actually pay; and what is the maximum it will pay out each year?

In this guide:

• Best Income Protection Companies – Claims Paid
• Best Income Protection Companies – Maximum Annual Benefit

Alternatively, if you're not sure what Income Protection is, start here.

Best Income Protection Companies – Claims Paid

Here are the top life insurance companies, in order of the percentage of critical illness claims they paid out in 2021:

1. Wesleyan – 98.0%
2. Vitality Life – 96.8%
3. Shepherds Friendly – 95.0%
4. LV= – 93.0%
5. The Exeter – 92.9%
6. Zurich – 91.1%
7. Royal London – 90.4%
8. Aegon – 90.0%
9. Aviva – 85.4%
10. Legal and General – 81.1%

Across the UK life protection industry, the average pay out rate in 2021 was 86.0%.

Best Income Protection Companies – Maximum Benefit

Here are the top Critical Illness policies, in order of the maximum amount they will pay out each year – but don't forget that in practice the policy will pay out a fixed percentage of your previous earnings:

1. LV= – £250,000
2. Royal London – £250,000
3. Zurich – £240,000
4. Aviva – £240,000
5. Legal and General – £240,000
6. Aegon – £150,000
7. Wesleyan – £130,000
8. Vitality Life – £120,000
9. The Exeter – £120,000
10. Shepherds Friendly – £50,000

Sources: Association of British Insurers (ABI), Aviva Individual Protection Claims Report, I'm Insured, Money For The Masses