Who can get income protection?

Income protection is available to most people who rely on their earned income. For company directors and employees, a business-funded executive policy may be more tax-efficient, whereas sole traders and freelancers typically take out personal cover. To qualify, you usually need to be aged between 18 and 59 at the start of the policy (though some insurers allow up to age 64), be a UK resident, and work at least 16 hours per week. Most insurers also require you to have been in the same occupation for a minimum of 6 or 12 months before applying.

Company directors: Limited company directors are eligible for executive income protection provided they are salaried employees of their company. The company takes out the policy and pays the premiums, which are normally deductible against Corporation Tax (GOV.UK – Corporation Tax). Directors who pay themselves mainly through dividends can include those dividends when calculating their insured benefit. Some executive policies will also cover employer National Insurance and pension contributions, allowing the company to maintain the director’s remuneration package even during long-term absence.

Employees: Any employee can take out personal income protection, either independently or through a workplace scheme. Executive plans are usually only available when an employer funds the cover, but many medium-sized firms offer group income protection as part of their employee benefits package. These group plans can provide useful baseline protection, though the cover amount and definition of incapacity are often less generous than with an individual policy. For more on policy structure, see short-term vs long-term income protection.

Sole traders and freelancers: If you operate as a sole trader or through an umbrella company, you cannot access executive cover because you don’t have a limited company to own the policy. Personal income protection remains a valuable safety net, providing a monthly tax-free benefit if you can’t work due to illness or injury. When assessing your income, insurers usually consider your average profits from the last one or two tax years — verified through Self Assessment returns (GOV.UK – Self Assessment). Keeping up-to-date accounts helps ensure you obtain the right level of cover.

Contractors: Contractors working through their own limited company can choose between executive and personal policies. Paying via the company is usually more tax-efficient, as the premiums are deductible and there’s no benefit-in-kind charge. However, personal cover may be preferable for contractors who want the payout to go directly to them tax-free, rather than via the business. For more on structuring cover, see income protection for contractors and freelancers. Some insurers now tailor executive income protection specifically for directors in professional services or IT contracting roles, offering flexible deferred periods to match typical contract cycles.

Insurers will ask about your occupation, income, medical history, and lifestyle habits (such as smoking, drinking, and high-risk sports) to assess eligibility and determine premiums. Riskier jobs and hobbies may increase the cost of cover or limit the maximum benefit you can insure. If you have a pre-existing condition, the insurer may apply an exclusion or premium loading, though some conditions can be reviewed after a set period if your health improves. The Association of British Insurers (ABI) provides further guidance on underwriting standards and eligibility.

Before applying, it’s worth comparing a few quotes or speaking to a specialist adviser who can recommend insurers comfortable with your line of work — especially important for contractors and directors in specialist or technical roles. A professional adviser can also help ensure the policy structure is tax-efficient and correctly written in trust if required. You can get a quote to compare leading UK providers.