Legal & General Income Protection (2026) Complete Guide to Cover, Underwriting, Pricing & Claims

A complete guide to Legal & General income protection – policy structure, key definitions, underwriting, exclusions, premium drivers and how claims are assessed

For most of us, our ability to earn an income is our most valuable asset. It pays for our home, our bills, our family's lifestyle, and our future plans. Yet, what would happen if that income suddenly stopped due to illness or injury? Statutory Sick Pay provides a minimal safety net, and few employer schemes last for more than a year.

This is where income protection insurance provides a crucial financial lifeline. It's a policy designed to replace a significant portion of your lost earnings, paying you a regular, tax-free income until you can return to work, or until the policy term ends.

Legal & General is one of the UK's largest and most respected insurers. Their Income Protection Benefit (IPB) is a popular and robust choice for individuals, the self-employed, and business owners. This definitive guide explores every aspect of Legal & General's income protection offering for 2026, giving you the expert insight needed to make an informed decision. We will delve into the policy structure, definitions, underwriting process, pricing factors, and what happens at the point of a claim.

What is Legal & General Income Protection?

Legal & General Income Protection is an insurance policy that pays you a regular, tax-free income if you become incapacitated and unable to work due to illness or injury.

Think of it as a replacement for your salary. The policy is designed to provide financial stability during a difficult time, allowing you to focus on your recovery without the added stress of financial hardship. The monthly benefit can be used for anything you need, including:

• Mortgage or rent payments
• Household bills (utilities, council tax)
• Food and groceries
• Childcare costs
• Loan and credit card repayments
• Maintaining your lifestyle and savings goals

Unlike Critical Illness Cover, which pays a one-off lump sum for a specific condition, income protection provides a continuous stream of income. This makes it arguably the most fundamental form of financial protection for any working adult.

How Does Legal & General Income Protection Work? Key Policy Decisions

Setting up an income protection policy with Legal & General involves making several key decisions that tailor the cover to your specific circumstances and budget. Understanding these choices is vital to ensuring your policy delivers when you need it most.

1. Level of Cover (Benefit Amount)

This is the amount of money you will receive each month if your claim is successful. Legal & General allows you to insure up to 60% of your gross (pre-tax) annual earnings, up to a maximum of £240,000 per year (£20,000 per month).

• Why 60%? The benefit is paid tax-free, and this level is designed to approximate your usual take-home pay without creating a disincentive to return to work.
• Proof of Income: When you apply and if you claim, you will need to provide evidence of your earnings (e.g., P60s, payslips, or certified accounts for the self-employed).

Adviser Tip: Don't just guess your income. Calculate it precisely. For the self-employed, this is typically your pre-tax profit. Overstating your income could lead to your benefit being reduced at the point of claim.

2. Deferred Period (Waiting Period)

The deferred period is the agreed amount of time you must be off work before the policy starts paying out. You choose this when you set up the policy.

Legal & General offers the following deferred period options:

• 4 weeks
• 8 weeks
• 13 weeks
• 26 weeks
• 52 weeks

How to Choose: The right deferred period depends on your personal circumstances.

• Company Sick Pay: Check your employment contract. If you receive full pay for 3 months, a 13-week deferred period would be appropriate.
• Savings: How long could your savings support you? If you have a healthy emergency fund, you could opt for a longer deferred period.
• Self-Employed: If you have no sick pay, a shorter deferred period (e.g., 4 or 8 weeks) is often essential, although this will result in a higher premium.

The longer the deferred period, the lower your monthly premium will be.

3. Policy Term (Cease Age)

This is the age at which the policy will end. You can choose a term that aligns with your planned retirement age. Legal & General allows you to set a cease age anywhere from 50 to 70. Most people choose a term that runs until age 65, 68, or 70 to match their expected working life.

4. Claim Payout Period

This determines how long the policy will pay out for a single claim. Legal & General offers two main options:

• Full Term Payout: This is the most comprehensive option. The policy will continue to pay your monthly benefit until you either recover and return to work, the policy term ends (your cease age), or you pass away, whichever happens first. This provides peace of mind for long-term or even permanent incapacity.
• Limited Term Payout: With this option, each claim is paid for a maximum of 2 years. This can be a more affordable way to secure cover, providing a crucial two-year window to recover, retrain, or adjust financially. After a claim has ended, you are still covered for new or unrelated conditions for the remainder of the policy term.

While a full-term payout offers the ultimate security, a 2-year limited term is a highly valuable and budget-friendly alternative that is far better than having no cover at all.

5. Definition of Incapacity

This is arguably the most important definition in the entire policy. It defines the criteria you must meet to be considered "incapacitated" and therefore eligible to claim. Legal & General uses the 'Own Occupation' definition for the vast majority of occupations.

• Own Occupation: You will be able to claim if you are unable to perform the material and substantial duties of your own specific job due to illness or injury. This is the gold standard definition as it protects your career. For example, if a surgeon develops a hand tremor, they can no longer perform their own occupation, even if they could work in a different role. Under this definition, they could claim.
• Suited Occupation: You can only claim if you are unable to do your own job or any other job you are suited to by education, training, or experience. This is less favourable.
• Any Occupation / Activities of Daily Living (ADL): This is the weakest definition. You can only claim if you are so severely incapacitated that you cannot perform any job or a number of basic daily tasks.

Legal & General's commitment to the 'Own Occupation' definition for most roles provides superior protection and clarity for policyholders. For a small number of very high-risk occupations, a different definition may be applied, which will be made clear during the application process.

A Closer Look at Legal & General's Income Protection Policy Features

Beyond the core choices, Legal & General's policy includes a suite of valuable features designed to provide support both financially and practically.

Included as Standard

• Waiver of Premium: While you are receiving a benefit from a successful claim, you do not have to pay your monthly premiums. The cover remains fully in force, and premiums only restart once the claim ends.
• Rehabilitation Support Service: This is a huge benefit. Legal & General provides access to a dedicated team of clinical experts who can offer personalised support to help you recover and return to work. This can include physiotherapy, counselling, or vocational guidance. It's a proactive service designed to improve your outcome.
• Hospitalisation Benefit: If you are admitted to hospital for more than 6 consecutive nights during your deferred period, Legal & General will pay a fixed benefit of £100 per night, for up to 90 nights. This helps with the incidental costs of a hospital stay.
• Proportionate Benefit: If you return to work after an illness or injury but can only do so in a reduced capacity (e.g., part-time hours or a lower-paid role), this benefit can top up your earnings. It ensures you aren't penalised for making a phased return to work.
• Guaranteed Insurability Options (GIO): This allows you to increase your level of cover without any further medical underwriting following certain life events, such as getting married, having a child, or getting a significant pay rise. This is vital for ensuring your cover keeps pace with your life.

Optional Add-ons

• Increasing Cover (Indexation): This is a highly recommended option. You can choose for your benefit amount to increase each year in line with the Retail Prices Index (RPI), subject to a maximum increase of 10% per year. This protects the future value of your benefit against the corrosive effects of inflation. Your premium will also increase annually to reflect the higher level of cover.

Who is Legal & General Income Protection For?

Income protection is essential for almost anyone who relies on their earnings. Legal & General's policy is flexible enough to cater to various circumstances.

Employed Individuals

Even if you have a good company sick pay scheme, it rarely lasts forever. Statutory Sick Pay (SSP) is currently just over £116 per week (2024/25 figures) – not enough to cover most people's essential outgoings. An L&G policy can be tailored to kick in exactly when your employer's support ends, providing a seamless transition and long-term security.

Self-Employed, Freelancers & Contractors

For this group, income protection is not a luxury; it is a necessity. With no employer sick pay to fall back on, an illness or injury can mean an immediate and complete loss of income.

• How it works: Cover is based on your average pre-tax profits. A policy with a short deferred period (e.g., 4 weeks) is often critical.
• Expert Guidance: At WeCovr, we specialise in helping self-employed individuals find the right cover. We understand how to evidence income from accounts and ensure the policy is structured correctly for your business model.

Company Directors and Business Owners

While you can take out a personal income protection policy, a more tax-efficient solution often exists: Executive Income Protection.

• What is it? This is a specific type of income protection policy owned and paid for by your limited company. The policy covers you, the director.
• How it works: If you are unable to work, the benefit is paid to the company, which can then distribute it to you, typically via PAYE.
• The Key Advantage: The premiums paid by the business are usually considered an allowable business expense, making them tax-deductible against corporation tax. This can make it a significantly more cost-effective way to arrange cover compared to a personal plan paid from post-tax income.

Legal & General offers a dedicated Executive Income Protection plan. An adviser can help you and your accountant determine if this is the right route for your business.

Underwriting Deep Dive: How Legal & General Assesses Your Application

Underwriting is the process the insurer uses to assess the risk of your application and decide on the terms and price of your policy. Full and honest disclosure is a legal requirement under the Consumer Insurance (Disclosure and Representations) Act 2012.

Legal & General's underwriters will assess several key factors:

1. Health and Medical History

This is the most detailed part of the application. You will be asked about:

• Your height, weight (BMI).
• Any past or present medical conditions (e.g., back pain, anxiety, depression, heart conditions, diabetes).
• Any symptoms you are currently experiencing or investigating.
• Your family's medical history.

For common or minor conditions, L&G may offer cover on standard terms. For more significant issues, they might:

• Apply an exclusion: Exclude claims relating to that specific condition.
• Apply a premium loading: Increase the price to reflect the higher risk.
• Postpone or decline cover: In rare, high-risk cases.

2. Occupation

Your job is a major factor. L&G groups occupations into risk classes.

• Class 1: Professional, administrative, or clerical roles (e.g., Accountant, Solicitor, IT Consultant). Lowest risk.
• Class 2 & 3: Roles with some light manual work or travel (e.g., Sales Rep, Teacher, Estate Agent).
• Class 4: Skilled manual workers and tradespeople (e.g., Plumber, Electrician, Mechanic). Highest risk.

A desk-based office worker will pay a lower premium than a construction worker for the same level of cover, as their risk of work-related injury is lower.

3. Smoker Status

You will be classed as a smoker if you have used any tobacco or nicotine products (including vapes and patches) in the last 12 months. Smokers pay significantly higher premiums due to the well-documented health risks.

4. Age

The younger and healthier you are when you apply, the cheaper your premiums will be. The price is locked in for the life of the policy (on a guaranteed premium basis), rewarding those who act early.

5. Hobbies and Pastimes

You must declare any hazardous pursuits, such as motorsport, mountaineering, or private aviation. These may result in an exclusion or premium loading.

The Application Journey:

1. Initial Application: You complete the application form with the help of your adviser.
2. Initial Decision: For many healthy applicants, an immediate decision is provided.
3. Further Information: L&G may request more details, such as a report from your GP (a GPR) or a mini-medical screening, which they arrange and pay for. This is common and nothing to be alarmed about.

Understanding Premiums: What Drives the Cost of Your Cover?

The price you pay for your Legal & General income protection is not arbitrary. It is a precise calculation based on the risk you present. Here are the primary drivers:

Illustrative Premium Examples

Scenario A: Low Risk

• Applicant: 30-year-old, non-smoker, office-based Project Manager (Class 1).
• Cover: £2,500/month, 13-week deferment, full payout term to age 68.
• Illustrative Premium: £35 per month

Scenario B: Higher Risk

• Applicant: 45-year-old, smoker, self-employed Electrician (Class 4).
• Cover: £2,500/month, 4-week deferment, full payout term to age 68.
• Illustrative Premium: £140 per month

These are for illustrative purposes only. Your actual premium will depend on your individual circumstances and underwriting assessment.

The Claims Process: How to Claim on Your L&G Income Protection Policy

The moment of a claim is the moment of truth for any insurance policy. Legal & General has a dedicated UK-based claims team and a clear process.

Step-by-Step Guide to Claiming:

1. Stop Work & Contact L&G: As soon as your illness or injury prevents you from working and you expect to be off beyond your deferred period, you should contact their claims department.
2. Complete the Claim Form: You will be sent a claim form to complete, which will ask for details about your condition, your occupation, your GP, and your income.
3. Provide Supporting Evidence: You will need to provide evidence to support your claim. This typically includes:
   • Medical Evidence: A report from your GP or specialist confirming your diagnosis, prognosis, and why you are unable to work. L&G may seek this directly with your consent.
   • Financial Evidence: Proof of your income before you became incapacitated (e.g., last 3-6 months' payslips or your most recent certified accounts).
4. Assessment: L&G's claims assessors, who may include qualified medical professionals, will review all the evidence. They will assess your incapacity against the definition in your policy (e.g., 'Own Occupation'). They will also engage their rehabilitation partners to see what support can be offered.
5. Decision & Payment: You will be informed of their decision. If the claim is accepted, payments will begin once your deferred period has ended. Payments are made monthly in arrears directly to your bank account.

Legal & General publishes its claims statistics annually. In 2023, they paid out over £239 million across their individual protection policies, including income protection, helping thousands of families. Knowing you are with an insurer that has a strong track record of paying valid claims provides immense peace of mind.

Common Exclusions and Limitations: What Isn't Covered?

All insurance policies have exclusions. It's important to be aware of what is not covered by a Legal & General Income Protection policy.

Standard Exclusions:

• Self-inflicted injury and attempted suicide.
• Illness or injury as a result of war, invasion, or civil commotion.
• Incapacity caused by alcohol or drug misuse.
• Failing to follow reasonable medical advice or treatment.
• Normal, uncomplicated pregnancy and childbirth.
• Living outside of the UK, USA, Canada, Australia, New Zealand, and most of Europe for a prolonged period.

Policy-Specific Exclusions:

• In addition to the standard exclusions, the underwriting process may result in a specific medical exclusion being applied to your policy. For example, if you have a history of chronic back pain, your policy might exclude any claims related to spinal conditions. This will be clearly stated on your policy documents.

Why Use an Expert Broker like WeCovr?

While you can go to an insurer directly, using an expert independent broker like WeCovr offers significant advantages at no extra cost to you.

1. Whole-of-Market Comparison: We don't just work with Legal & General. We compare their offering against policies from all other major UK insurers, like Aviva, Royal London, and The Exeter. We find the best policy for your specific needs and budget, not just the best policy from one provider.
2. Expert Application Support: We guide you through the application form, ensuring all questions about your health and occupation are answered accurately. This minimises delays and the risk of non-disclosure issues at the point of a claim.
3. Complex Case Specialists: If you have a pre-existing health condition or a high-risk occupation, we know which insurers are most likely to offer the most favourable terms. We can "pre-underwrite" your case informally to get an idea of the likely outcome before you commit to a full application.
4. Trust Planning: We can help you place your policy into a trust, which can help ensure any benefits are managed according to your wishes. This is particularly relevant for business protection policies.
5. Customer Care: As part of our commitment to our clients' long-term wellbeing, we provide complimentary access to CalorieHero, our AI-powered calorie and nutrition tracking app, helping you manage your health proactively.

Final Thoughts: Securing Your Financial Future

Your income is the engine of your financial life. An unexpected illness or injury can bring everything to a halt. Legal & General's Income Protection is a robust, flexible, and comprehensive solution designed to act as your financial co-pilot, providing a steady income when you are unable to fly solo.

By understanding the key decisions around benefit levels, deferred periods, and definitions of incapacity, you can build a policy that fits you perfectly. With a strong track record of paying claims and a focus on rehabilitation, Legal & General provides a powerful tool for securing your financial wellbeing.

However, the protection market is vast. The right choice depends entirely on your unique health, occupation, and financial circumstances. Engaging with an expert adviser ensures you not only get the right policy but also the best possible value from across the entire market.

Don't leave your most valuable asset unprotected.

Ready to secure your income? Compare quotes from Legal & General and all other leading UK insurers instantly. Get your free, no-obligation quote from WeCovr today and take the first step towards total financial peace of mind.