TL;DR
A deep dive into Shepherds Friendly income protection – policy features, underwriting, exclusions, pricing factors, member-style elements and claims handling Shepherds Friendly stands out in the UK protection market for its mutual status and its member-first approach. This guide focuses on what Shepherds Friendly actually provides in its Income Protection plan, based on their published product details. We will cover what the plan does, who it suits, how the benefits work, key limits and options, and the additional member benefits tied to the policy.
Key takeaways
- Mortgage or rent payments
- Household bills (utilities, council tax)
- Food and groceries
- Childcare costs
- Debt repayments
A deep dive into Shepherds Friendly income protection – policy features, underwriting, exclusions, pricing factors, member-style elements and claims handling
Shepherds Friendly stands out in the UK protection market for its mutual status and its member-first approach. This guide focuses on what Shepherds Friendly actually provides in its Income Protection plan, based on their published product details.
We will cover what the plan does, who it suits, how the benefits work, key limits and options, and the additional member benefits tied to the policy.
What is Income Protection and Why is it Crucial?
Before we delve into the specifics of Shepherds Friendly, let's establish the fundamentals. Income Protection is a type of insurance policy designed to provide a financial safety net if you are unable to work due to illness or injury.
It pays out a regular, tax-free monthly income to replace a portion of your lost earnings. This money can be used for anything you need, such as:
- Mortgage or rent payments
- Household bills (utilities, council tax)
- Food and groceries
- Childcare costs
- Debt repayments
Income protection replaces your lost earnings if illness or injury prevents you from working. It is the foundation of any robust financial plan, ensuring your lifestyle and family are protected when you are most vulnerable.
The UK's Sickness Reality & The State Support Gap
Many people mistakenly believe state benefits will be enough to support them. The reality is starkly different.
- Statutory Sick Pay (SSP): As of 2025/26, SSP is just over £116 per week, and it's only payable by your employer for a maximum of 28 weeks. For most people, this represents a significant income drop.
- Long-Term Sickness: Recent data from the Office for National Statistics (ONS) shows a record number of people in the UK are economically inactive due to long-term sickness. This highlights a growing risk that can affect anyone.
- Universal Credit: While available, the amount you receive is means-tested and often insufficient to cover all essential outgoings, especially a mortgage.
An income protection policy is designed to bridge this gap, providing a substantial, reliable income stream until you can return to work or your policy term ends.
Introducing Shepherds Friendly: A Mutual with a Modern Approach
Founded in 1826, Shepherds Friendly is one of the UK's oldest and most respected friendly societies. But what does that actually mean for you, the policyholder?
A friendly society is a mutual organisation. This means it is owned by its members (the policyholders), not by external shareholders. This fundamental difference shapes its entire ethos.
Key Features of a Mutual Society:
- No Shareholders: Profits aren't distributed as dividends to shareholders. Instead, they are reinvested back into the society or shared with members.
- Member-First Focus: The primary goal is to provide the best possible value and service to members, rather than maximising shareholder profit.
- Potential for Bonuses: Surplus profits may be distributed to eligible members, potentially in the form of plan enhancements or financial returns (though this is not guaranteed).
Shepherds Friendly combines this traditional, member-focused ethos with modern, award-winning insurance products. They have a strong track record for customer service and a reputation for fair and efficient claims handling.
Shepherds Friendly Income Protection: A Policy Deep Dive
Shepherds Friendly Income Protection is designed to replace part of your income if you cannot work due to illness or injury. It pays a monthly benefit once your chosen waiting period ends.
Let's break down the core features of their plan.
| Feature | Shepherds Friendly Offering | WeCovr Adviser Insight |
|---|---|---|
| Cover Type | Income Protection | Pays a monthly benefit if you cannot work due to illness or injury. |
| Maximum Benefit | Up to 70% of gross income | Up to 70% of gross income (or average of the last three years' net profit if self-employed), capped at £33,600 per year. |
| Deferred Periods | From 1 week | Choose a waiting period that matches your sick pay or savings. |
| Claim Duration | 1 or 2 years | Benefit period is 1 year or 2 years, depending on the plan you select. |
| Premiums | From £5 per month | Shepherds Friendly states cover starts from £5 per month. |
Waiting Periods and Benefit Length
You can choose a waiting period starting from 1 week. This should align with any sick pay you receive from your employer. Benefit periods are either 1 year or 2 years, depending on the plan selected.
Customising Your Cover: Making the Policy Work for You
A Shepherds Friendly income protection policy is not one-size-fits-all. You have several levers to pull to tailor the cover to your exact needs and budget.
1. The Benefit Amount: How Much Do You Need?
You can insure up to 70% of your gross annual income. For example, if you earn £40,000 per year, you could insure a maximum benefit of £28,000 per year, which translates to a tax-free monthly income of £2,333.
How to calculate your ideal amount:
- List all your essential monthly outgoings (mortgage/rent, bills, food, travel, etc.).
- Subtract any other income you would still receive if you were sick (e.g., spouse's income, rental income).
- The remaining figure is the monthly benefit you need to protect.
Remember to account for any sick pay you receive from your employer. If your employer pays you in full for 3 months, you don't need the insurance to pay out during that time.
2. The Deferred Period: Your Waiting Time
The deferred period is the time you must be off work due to illness or injury before the policy starts paying out. Shepherds Friendly offers a wide range of options: 1, 4, 8, 13, 26, or 52 weeks.
Choosing the right deferred period is crucial for managing cost:
- Shorter Deferred Period (e.g., 4 weeks): Higher premium, as the risk to the insurer is greater. Suitable if you have limited savings or employer sick pay.
- Longer Deferred Period (e.g., 26 weeks): Lower premium. A great option if you have a generous employer sick pay scheme or substantial emergency savings.
Real-Life Scenario:
Meet Mark, a 35-year-old self-employed electrician. Mark has no employer sick pay and about £6,000 in savings, which could cover his essential outgoings for about two months.
Mark chooses an 8-week deferred period. This gives him a buffer, and because the deferred period isn't the shortest possible, it keeps his monthly premium more affordable than a 1 or 4-week option. It's a perfect balance between his savings and the start of his insurance payout.
3. The Policy Term: How Long Should You Be Covered?
This is the duration of your policy. For income protection, it is almost always recommended to set the policy to run until your planned retirement age (e.g., age 65, 68, or 70).
This ensures that if you suffer a long-term illness or debilitating injury at, say, age 45, the policy can continue to provide an income for the next 20+ years, protecting your entire future earnings.
Shepherds Friendly's Underwriting: Who Can Get Cover?
Underwriting is the insurer's process of assessing the risk you present before they offer you a policy. Shepherds Friendly assesses three main areas: your occupation, your health, and your finances.
Medical & Financial Underwriting
Like all insurers, Shepherds Friendly will ask detailed questions about your health, lifestyle, and medical history. It is vital to be 100% honest and accurate in your application.
- Medical Questions: You will be asked about pre-existing conditions, family medical history, height, weight, and smoker status. In some cases, they may request a GP report or a nurse medical screening, especially for higher benefit amounts or if you have a complex medical history.
- Financial Questions: You will need to provide proof of your income to justify the benefit amount you are applying for. For the self-employed, this typically means providing 1-2 years of accounts or tax returns.
Potential Underwriting Outcomes:
- Accepted at Standard Rates: You are considered a standard risk and offered the quoted premium.
- Exclusion Applied: You are offered a policy, but a specific medical condition is excluded. For example, if you have a history of back pain, they might exclude any future claims related to spinal conditions.
- Premium Loading: You are offered a policy but at a higher premium than standard rates to reflect an increased risk (e.g., due to a high BMI or a controlled medical condition).
- Declined: In rare cases where the risk is considered too high, they may be unable to offer cover.
What's Not Covered? Understanding Policy Exclusions
Every income protection policy has exclusions. Being aware of these upfront prevents any surprises at the point of a claim.
Exclusions and policy terms vary by applicant. The most important point is that pre-existing conditions disclosed during application can lead to exclusions. Read the policy terms carefully before you commit, and ask for clarification if anything is unclear.
How Much Does Shepherds Friendly Income Protection Cost?
The cost of your premium is highly personalised. The main factors that influence your monthly premium are:
- Age: The younger you are when you take out the policy, the cheaper it will be.
- Smoker Status: Smokers and vapers pay significantly more than non-smokers due to the increased health risks.
- Health & BMI: Your personal and family medical history plays a big role.
- Occupation: A riskier job will result in a higher premium.
- Benefit Amount: The more cover you need, the more it will cost.
- Deferred Period: A shorter waiting period means a higher premium.
Shepherds Friendly states cover starts from £5 per month. Your actual premium will depend on your income, waiting period, benefit length, and underwriting profile.
Claims experience and member benefits
Shepherds Friendly reports 96% of income protection claims paid in 2024 (industry average 80%). This provides helpful confidence for members considering cover.
Enhanced benefits (Nuffield Health)
Shepherds Friendly includes enhanced benefits through a partnership with Nuffield Health, including:
- 24/7 virtual GP and ACP appointments
- 20% discount on Nuffield Health gym membership
Family support benefits
- Bereavement payment: £6,000 if you die during the term of your plan.
- New child payment: £250 into a Shepherds Friendly Junior ISA on birth or adoption.
Claims process
Shepherds Friendly states that any documents required to handle a claim will be processed within five working days. Their claims team will guide you through the process and keep you updated.
Remember: These are examples. The only way to get an accurate price is to get a personalised quote based on your specific details. A broker like WeCovr can instantly compare a Shepherds Friendly quote against guaranteed premium options from the rest of the market.
The 'Friendly Society' Advantage: More Than Just an Insurance Cheque
Choosing a policy with Shepherds Friendly means you become a member, not just a customer. This unlocks a range of benefits designed to support your overall wellbeing, often referred to as 'value-added benefits'.
Shepherds Friendly's Member Benefits often include:
- 24/7 Virtual GP Service: Access to a GP via phone or video call at any time, which can be invaluable for getting quick advice or a second opinion.
- Mental Health Support: Access to counselling and therapy services to support you through difficult times, even if you're not claiming on the main policy.
- Rehabilitation and Recovery Support: Practical help and phased return-to-work plans to assist you during and after a claim.
- Potential for Profit Share: As a mutual, any surplus profits can be shared with members. While never guaranteed, this can sometimes result in bonuses being added to your plan.
These benefits add a significant layer of value. They provide tangible support for your health and wellbeing throughout the life of the policy, not just when you make a claim. At WeCovr, we also provide our clients with complimentary access to our AI-powered calorie tracking app, CalorieHero, to support their health and wellness goals as part of our comprehensive customer care.
The Shepherds Friendly Claims Process: Support When You Need It Most
An insurance policy is only as good as its ability to pay a claim. Shepherds Friendly has a strong reputation in this area, consistently publishing high claim payout rates.
In 2023, Shepherds Friendly paid 96% of all new income protection claims. This high figure provides significant reassurance that they are committed to supporting their members in their time of need.
How to Make a Claim: A Step-by-Step Guide
- Contact Shepherds Friendly: The first step is to notify their claims team as soon as you know you will be unable to work beyond your deferred period.
- Complete the Claim Form: They will send you a claim pack to complete. This will ask for details about your illness/injury, your job, and your income.
- Provide Evidence: You will need to supply supporting evidence. This typically includes:
- A 'fit note' (sick note) or medical report from your doctor.
- Proof of your income before you became incapacitated (e.g., payslips, accounts).
- Assessment: Their dedicated claims assessors will review your case. They may contact you or your doctor for more information if needed. Their role is to understand your situation and ensure your claim is valid under the policy terms.
- Claim Paid: Once the claim is approved, you will start receiving your tax-free monthly payments directly into your bank account after your deferred period has passed. The claims team will maintain regular, supportive contact with you throughout your claim.
Real-Life Claim Scenario:
Meet Susan, a 48-year-old marketing manager. Susan was diagnosed with breast cancer and needed to take significant time off work for surgery and chemotherapy. Her employer's sick pay scheme ran out after 4 months.
Thankfully, Susan had a Shepherds Friendly income protection policy with a 13-week deferred period. She contacted them shortly after her diagnosis. The claims team were supportive and guided her through the process.
After the 13-week period, Susan started receiving £2,800 per month, tax-free. This money allowed her to cover her mortgage and bills without worry, enabling her to focus fully on her treatment and recovery. Shepherds Friendly also provided her with access to their mental health support service, which she found incredibly helpful.
Who is Shepherds Friendly Income Protection Best For?
While their policy is flexible, it's particularly well-suited to certain groups:
- The Self-Employed & Freelancers: The ability to secure cover based on a fair assessment of their work, combined with a range of deferred periods that can be matched to their financial buffer, makes it a top choice.
- Skilled Manual & 'Higher-Risk' Trades: As mentioned, their underwriting for roles like builders, HGV drivers, and engineers is often more favourable than many mainstream insurers.
- Those Seeking an 'Ethical' Provider: Individuals who value the mutual, member-owned ethos may prefer Shepherds Friendly over a large, shareholder-driven plc.
- Budget-Conscious Buyers (with a caveat): People looking for the lowest possible initial premium may be attracted to their reviewable rates, but they must understand and accept the risk of future increases.
Final Thoughts: Is Shepherds Friendly Right for You?
Shepherds Friendly offers a robust, feature-rich income protection plan from a trusted, member-focused organisation. Their flexible underwriting for different occupations and their strong claims record are significant advantages.
However, the defining feature is their reviewable premium structure. This is the key point of differentiation from most of the market. It offers initial affordability but lacks long-term price certainty.
There is no single "best" income protection provider. The right policy for you depends entirely on your personal circumstances, health, occupation, budget, and attitude to risk.
The wisest step is to compare. At WeCovr, we are independent experts who can provide you with quotes from Shepherds Friendly alongside guaranteed premium options from all the UK's leading insurers. We'll give you a clear, unbiased comparison of the features, benefits, and costs, empowering you to secure the very best protection for you and your family at no extra cost.
Are income protection payments from Shepherds Friendly taxable?
What happens if Shepherds Friendly increases my reviewable premiums?
Can I get Shepherds Friendly income protection if I have a pre-existing medical condition?
How long does Shepherds Friendly pay out for on an income protection claim?
Get Your Personalised Income Protection Quote Today
Protecting your income is one of the most important financial decisions you will ever make. Don't leave your financial future to chance.
The team of expert advisers at WeCovr is here to help. We provide free, impartial advice and can generate personalised quotes from Shepherds Friendly and every other major UK insurer in minutes. Let us help you find the right cover at the best price.
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