The Role of Income Protection for Over 50​s

Even in your 50s, there are still plenty of protection products available to you. Whether it's income protection, life insurance or critical illness cover, each can provide peace of mind for you and your family as you head into your golden years.

In this guide, we'll explain how income protection can work for over-50s, in particular, and where it can be useful for life stages like retirement.

Can you get income protection over 50?

Income protection is still an option in your 50s and beyond. In fact, many insurers offer tailored policies for this age group.

What will matter in terms of your eligibility are factors such as your age, health, occupation, income and lifestyle. Though some insurers may have age limits, there are still plenty of routes available for people who are working and earning an income.

Getting older often means insurers view you as a higher risk, as the likelihood of illness and medical conditions naturally increases. This means your premiums may be higher than they would be for younger applicants, and some insurers may apply exclusions or ask for additional medical information.

Being over 50 doesn't automatically mean you'll struggle to get cover. Many people are still able to secure suitable protection, particularly if they are in good health and remain actively employed.

Is income protection worth it over 50?

If you're on the fence about getting income protection in your 50s, ask yourself - Would you be able to cover your income if you could no longer work?

For a lot of people in the UK, this is a common fear. The reality is, you could suffer an illness or injury at any time in life, even if you're healthy. What income protection can do is ease any anxiety and put a plan in place should anything happen to you.

At this stage, you may be approaching retirement, or still have significant financial responsibilities, including:

• Mortgage repayments

• Living costs

• Dependants who rely on your income

• Outstanding loans or credit commitments

• Ongoing retirement savings goals

If illness or injury prevented you from working for several months or even years, income protection could provide a financial safety net while you recover. It could be a huge relief for you and your family knowing that you have consistent support available to meet essential expenses.

How does income protection work for over 50s?

Income protection works in much the same way for over-50s as it does for everyone else.

If you cannot work because of illness or injury, you'll usually make a claim after your chosen deferred period has passed. The insurer may then begin paying a monthly benefit based on a percentage of your income.

The payments may continue until:

• You return to work

• The policy term ends

• You reach retirement age

• The maximum benefit period is reached

The exact terms will depend on the policy you've selected.

What does income protection cover?

With income protection, you'll be covered for a variety of illnesses and injuries that prevent you from working. These can be both short-term and long-term, depending on the policy.

This may include:

• Serious illnesses such as heart disease, cancer, and strokes

• Musculoskeletal problems like severe back pain or arthritis

• Mental health conditions such as stress, anxiety, or depression

• Injuries resulting from accidents

• Long-term medical conditions that affect your ability to work

In order for a claim to be successful, the condition will need to prevent you from performing your job according to the policy definition. The specific conditions covered will also depend on the insurer and its guidelines. Some may cover certain conditions that others do not.

What does income protection NOT cover?

While this will vary between insurers, most policies won't cover:

• Redundancy or unemployment

• Pre-existing conditions that have been excluded

• Self-inflicted injuries

• Claims linked to alcohol or drug misuse

• Certain hazardous activities

• Situations where medical evidence does not support the claim

You can review the policy agreement to understand exactly what is and isn't covered. There will often be a specified list of exclusions detailed in the terms and conditions.

Can you get income protection with pre-existing conditions?

Possibly. This will depend on the type of condition and how it affects your health.

You may find that some insurers may offer cover with no restrictions, while others may increase premiums or restrict the level of cover available.

Having conditions such as diabetes, high blood pressure, heart conditions or a previous cancer diagnosis, doesn't mean you'll be declined on the spot. Some may offer you cover whereas others may decline to.

It's best to provide accurate information during the application process. Even though you may be tempted to leave out certain details, it could affect your policy in more ways than one.

How much income protection do you need over 50?

Everyone's cover needs will be different and often depend on your income and financial commitments. Many insurers allow you to cover around 50% to 70% of your salary.

Ideally, you'll want an amount that allows you to maintain your lifestyle if you're unable to work for an extended period.

When deciding how much protection you need, think about:

• Rent or mortgage

• Dependants, such as a spouse, children or anyone else who relies on your financial support

• Day-to-day living expenses, including groceries, utilities, and other necessities

• Existing savings at your disposal

• Other sources of income, such as investments

• Retirement plans or pensions

Once you know what you need to cover, it makes it much easier to come up with an amount that will adequately support your financial needs. If you're unsure, please see our guide on how much income protection you need.

Many over 50s choose policies that run until their planned retirement age, helping to bridge the gap between being unable to work and accessing retirement income.

Can self-employed over 50s get income protection?

People often think that being self-employed can limit their access to protection, but this isn't the case when it comes to income protection. It can be particularly valuable for self-employed people such as contractors, freelancers, and business owners.

Unlike employees, self-employed workers often don't have access to company sick pay schemes. If illness prevents them from working, their income could stop immediately.

See our guide on self-employed income protection for more information.

Income protection vs over 50s life insurance

Life insurance is another form of financial protection, though it serves a slightly different purpose than income protection.

Over 50s life insurance works by paying out a lump sum when you die. This can be used to help your family cover expenses such as funeral costs, debts, or other financial commitments.

This is different to income protection, which pays a monthly benefit if illness or injury prevents you from working.

So one protects your loved ones after your death, while the other protects your income while you're alive.

Many people choose to have both, which you can do by combining both policies.

Income protection vs critical illness cover

Critical illness cover tends to get confused with income protection, but like life insurance, they work very differently.

It pays a one-off lump sum if you're diagnosed with a specified serious illness covered by the policy. Whereas income protection provides regular monthly payments.

Critical illness cover also focuses on specific medical conditions, like cancer, heart attack, or stroke. Whereas income protection can potentially cover a much wider range of illnesses and injuries.

Learn more about these policies through our detailed head-to-head guide.

Dedicated support for finding Cover

If you're considering income protection over 50, you need a policy that reflects your income, financial commitments, and future plans.

Cavendish Online can help you compare income protection policies from across the market and explain how different options may suit your circumstances. 

Whether you're employed, self-employed, approaching retirement, or simply looking for additional financial security, we can help you understand the options available.