Income protection during maternity leave and career breaks

Income protection during maternity leave and career breaks

Most income protection policies are designed to cover you while you’re actively working and earning.

If you take planned time off, such as maternity or paternity leave, a career break, or a sabbatical, you usually can’t claim during that period.

This is because you’re not losing income as a result of illness or injury. The policy is intended to protect your income if you’re unable to work, not to supplement a voluntary break from employment.

Even so, it’s worth keeping your policy active while you’re away from work. Your health could change during a period of leave. If you cancel or pause your cover, you might have to reapply when you return.

That means going through new medical checks, and any changes in your health could increase your premiums or lead to new exclusions on the policy.

Options during maternity or career breaks

Many insurers offer flexibility for policyholders taking time out. Depending on your provider and plan type, you may be able to:

  • Reduce your cover temporarily: Lowering the insured benefit for a few months can reduce your premiums while keeping your policy in force.
  • Apply for a payment holiday or premium waiver: Some insurers allow short breaks in premium payments during maternity leave or career gaps. This may reduce or suspend cover for that period.
  • Pause cover formally: A few modern policies include a career break feature, allowing you to suspend cover for up to 12 months without losing your existing terms. You’ll need to notify your insurer in advance and confirm when you return to work.

If you’re planning maternity leave, remember that Statutory Maternity Pay (SMP) is limited. It usually lasts up to 39 weeks. The first six weeks are paid at 90% of average weekly earnings, followed by a flat weekly amount.

Executive income protection policies won’t cover voluntary leave, but they may still provide valuable long-term protection if health issues arise before or after your planned time away.

For limited company directors, it’s especially important to keep cover continuous.

If your business pays the premiums, maintaining the policy ensures you don’t lose Corporation Tax relief or have to restart the arrangement later.

Sole traders and freelancers should take a similar approach.

Keeping personal cover active avoids gaps that could leave you uninsured if illness strikes during or soon after a break. You can read more about eligibility in who can get income protection.

Before making any changes, speak to your broker or insurer. They can explain exactly how your policy will operate during maternity or paternity leave and whether temporary adjustments are available.

Planning helps ensure you stay protected and avoid the risk of having to reapply for cover on less favourable terms.

For tailored advice, consider speaking to a regulated financial adviser or getting a comparison through our income protection quote form.