Factors that Affect Income Protection Insurance Cost

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Income Protection Insurance could both be an affordable or expensive undertaking. Like most other insurances, there are determining factors that affect the cost of your IPI premiums. While some of them you can do nothing about, most of them are factors that you could change or modify. Here they are:


You guessed it right- the older you are, the higher you are likely to pay for your premiums, due to the mere fact that getting older naturally deteriorates one’€™s body. If you are considering income protection insurance, might as well apply while you are still young and healthy, so you’€™ll be able to bargain for lower premiums.


Surprisingly, although women generally have lower salaries than males, they tend to pay more for their income protection insurance. This is because women are more likely to retire early and take career breaks in order to care for family members.


Expectedly, insurance companies rank their clients according to the potential threats they can bring in based on their line of work. Although insurers may have difficult categories of risk, they tend to have similarities regarding the type of work which they consider risky. For example, low risk workers include managers and administrative staff whose job doesn’€™t involve much manual labor. Likewise, those who drive a lot in their jobs tend to pay higher.

Meanwhile, skilled and unskilled manual workers tend to pay more for their insurance premiums, due to the fact that they are more likely to get injured in their line of work. Jobs include bar workers, shop assistants, factory workers, and those who operate heavy machineries.


The better your health status is, the cheaper you’€™ll pay for your premiums. This is why during the application process, you will undergo a medical exam, which will obtain data such as your blood pressure, weight, and height. Simply maintaining your weight within normal range can help avoid developing health problems such as diabetes, hypertension, and stroke, and avoid steep premiums as well.


Basically, your premiums will always be more expensive if you are a smoker, simply because smoking is associated with a number of health ailments. If you are a smoker, you can expect to pay higher premiums.


The risks of certain sports or hobbies may be weighed differently depending on the company. You should remember to mention every activity that you participate in so that they could be assessed correctly. In some situations, the limit for certain activities could be lifted, but you might pay for a higher price to do so.

Rate of Premium

The premiums you’€™ll pay will depend on the rate you choose from the beginning. You may want to have a fixed- guaranteed premium throughout the whole policy. On the other hand, you may opt for a reviewable or inflation- linked premium.

Additional riders

You could be offered with optional extras or benefits to be included in the policy, and they will most certainly increase your premiums. Before adding one, make sure that you actually need it.

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We do not provide any financial advice relating to insurance or other insurance related topics. IncomeProtectionAdvisor help users get a competitive income protection insurance quote. We do this by working with FSA regulated partners who search and compare insurance policies from dozens of UK insurers. The quote you receive will be based on the information you submit to us. Our service is free and you are under no obligation to accept the quote you receive.
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