What a deferred period is
Income protection replaces part of your income if illness or injury stops you working. It does not start on your first day off. Instead, you choose a waiting time, called the deferred period, and the policy starts paying once you have been unable to work for that long.
Payments are usually made monthly in arrears, so the first payment typically arrives about a month after the deferred period ends. Payments then continue until you return to work, the policy ends or you reach the end of any payment limit you chose.
The usual choices: 4, 8, 13, 26 or 52 weeks
Most UK insurers offer deferred periods of 4, 8, 13, 26 or 52 weeks, and some offer others. A short deferred period means the policy pays sooner, so it costs more. A long one means the insurer is less likely to pay out, so the premium falls.
Choosing a longer deferred period can make cover more affordable, but only if you can manage until it ends. The goal is to pick the longest wait you can cope with comfortably. Count the cost of the first month of benefit arriving in arrears, too, so the gap does not catch you out.
- 4 weeks: suits people with little or no sick pay or savings
- 8 or 13 weeks: suits those with a few months of support
- 26 weeks: often matches six months of full company sick pay
- 52 weeks: suits generous sick pay or substantial savings
Matching the deferred period to your sick pay
Start by checking your employment contract or staff handbook. Many employers pay full salary for a set number of weeks, then half pay, then statutory sick pay. If you receive full pay for six months, a 26 week deferred period would start your cover as that support ends.
Statutory sick pay lasts up to 28 weeks and is far lower than most people's earnings. If your employer only pays statutory sick pay, a short deferred period may suit you better. Self-employed people and many contractors get no sick pay at all, so they need to rely on savings or choose a short deferred period.
Some people split their cover into two policies with different deferred periods. One pays a smaller amount after a short wait, and the second adds more once company sick pay stops. This can match a stepped sick pay scheme more closely than a single policy.
Own occupation, suited occupation and other definitions
Every policy defines what being unable to work means. Own occupation is the most generous: it pays if you cannot do your own job, even if you could do something else. Suited occupation pays only if you cannot do your own job or any similar job that fits your skills and experience.
Some policies use a stricter test based on whether you can do any work at all, or on specific everyday tasks. These are usually cheaper but harder to claim on. For most people with a skilled job, own occupation cover is worth the extra cost.
- Own occupation: unable to do your own job
- Suited occupation: unable to do your job or a similar one
- Any occupation: unable to do any job at all
- Work tasks: unable to carry out set everyday activities
Going back to work and relapses
Many policies support a gradual return to work, paying a reduced amount if you come back on fewer hours or lower pay. You can build back up at a pace that suits your recovery without losing all your support at once. Some insurers also offer rehabilitation help, such as physiotherapy or counselling, during your time off.
If the same condition flares up again within a set period after you return, many policies let payments restart without a fresh deferred period. Check how your policy handles linked claims, as the rules differ between insurers.
How Hi Tomorrow sets your deferred period
We ask about your sick pay, savings and household costs, then recommend a deferred period that leaves no gap in your income. If budget is tight, we show you how a longer deferred period or a shorter payment term changes the price.
We compare policies across our panel, with a focus on own occupation cover and how each insurer handles returns to work. Acceptance and terms are subject to the insurer's underwriting.