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Quick question: if you couldn’t work tomorrow, what happens to your mortgage payment next month? It’s not a comfortable thing to think about, but it’s one of the most important questions a homeowner can ask because the honest answer, for most people, is “not much of a plan.”

The Gap Most People Don’t Realise They Have

If illness or injury meant you couldn’t work, there are typically three things standing between you and your mortgage payment: statutory sick pay, your savings, and time.

Statutory sick pay (SSP) is the government’s safety net, but it covers only a fraction of most people’s income, and it’s paid for a limited period it isn’t designed to replace your salary long-term. For most homeowners, SSP alone wouldn’t come close to covering a full mortgage repayment, let alone everything else a household needs to cover.

Savings can bridge the gap in the short term, but most households simply don’t have enough set aside to cover a mortgage for more than a few months. And that assumes those savings aren’t already earmarked for something else a car, a holiday, an emergency fund for the boiler breaking down.

Once SSP runs out and savings are stretched thin, the honest question becomes: what actually covers your mortgage from that point on?

Where Income Protection Insurance Fits In

Income protection insurance exists specifically for this gap. Rather than a lump sum, it pays out a portion of your income for as long as you’re unable to work due to illness or injury (up to the policy’s terms), which means your mortgage payments and everyday bills can keep being met without draining your savings or relying on SSP alone.

It’s different from life insurance, which only pays out if you die, and different from critical illness cover, which usually pays a one-off lump sum for a specific list of serious conditions. Income protection is built around a simpler, more common scenario: you’re unwell or injured, you can’t work, and your income still needs to keep flowing.

Why It’s Worth Five Minutes of Your Time

The value of income protection isn’t the same for everyone it depends on your income, your job, your existing sick pay entitlement from your employer, your savings, and how much cover you’d actually need to match your mortgage and outgoings. That’s exactly why it’s worth finding out what it would cost to cover your specific situation, rather than assuming it’s expensive or unnecessary based on a general impression.

Five minutes is genuinely all it takes to get a clear picture your numbers, your cover, your cost. No pressure, just the facts, so you can decide for yourself whether it makes sense for your household.

Questions Worth Asking Yourself

If I couldn’t work for three months, would my mortgage payment be covered?
What does my employer actually pay if I’m off sick long-term, and for how long?
How many months could my savings realistically cover the mortgage alone?
What would it cost each month to close that gap completely?

If any of those answers feel uncertain, that uncertainty is exactly what income protection insurance is designed to remove.

Frequently Asked Questions

What’s the difference between income protection and critical illness cover? Income protection pays out a regular portion of your income for as long as you’re unable to work (within the policy terms), covering a broad range of illness and injury. Critical illness cover typically pays a one-off lump sum, but only for a defined list of serious conditions.

Does statutory sick pay cover a full mortgage payment? For most people, no. SSP is a fraction of average earnings and is paid for a limited time, so on its own it rarely covers a full mortgage payment alongside other living costs.

How long does income protection pay out for? This depends on the policy some pay out until you return to work or reach retirement age, others for a set maximum period. It’s one of the key things to compare when looking at cover.

Is income protection insurance expensive? Cost varies significantly based on your age, occupation, health, and the level of cover you choose. The only way to know what it would cost for your circumstances is to get a personalised quote.