TL;DR
An in-depth guide to The Exeter income protection – ‘own occupation’ definitions, waiting periods, benefit levels, exclusions, medical underwriting and claims process The Exeter Income Protection: A Definitive 2026 UK Guide Income protection is the bedrock of a robust financial plan. It acts as your personal financial safety net, providing a regular, tax-free income if you are unable to work due to illness or injury. Unlike a critical illness policy that pays a one-off lump sum for a specific condition, income protection is designed to replace your monthly earnings over the long term, helping you cover everything from your mortgage to your weekly food shop.
Key takeaways
- It replaces your income: The policy pays out a monthly benefit if you're medically signed off work.
- It covers most illnesses and injuries: Unlike critical illness cover, any medical condition that prevents you from doing your job can trigger a claim, subject to policy terms.
- It pays out for the long term: Cover can be set up to pay out until you recover, retire, or the policy term ends, whichever comes first.
- ‘Own Occupation’ as Standard: They offer one of the strongest definitions of incapacity in the market, protecting you in your specific job role.
- Specialist Underwriting: They have a strong reputation for offering cover to individuals who may struggle elsewhere, including those with well-managed health conditions or in higher-risk occupations.
An in-depth guide to The Exeter income protection – ‘own occupation’ definitions, waiting periods, benefit levels, exclusions, medical underwriting and claims process
The Exeter Income Protection: A Definitive 2026 UK Guide
Income protection is the bedrock of a robust financial plan. It acts as your personal financial safety net, providing a regular, tax-free income if you are unable to work due to illness or injury. Unlike a critical illness policy that pays a one-off lump sum for a specific condition, income protection is designed to replace your monthly earnings over the long term, helping you cover everything from your mortgage to your weekly food shop.
In the crowded UK protection market, The Exeter stands out. As a friendly society, they are owned by their members, not shareholders. This member-first ethos shapes their product design, underwriting philosophy, and claims handling, earning them a stellar reputation, particularly for their flexible and comprehensive income protection cover.
This guide will provide an exhaustive breakdown of The Exeter's flagship income protection policy, exploring its definitions, features, and suitability for a wide range of individuals – from PAYE employees to company directors and the self-employed.
What is Income Protection and Why is it Essential?
Before diving into The Exeter's specific offering, it's crucial to understand the fundamental role of income protection.
- It replaces your income: The policy pays out a monthly benefit if you're medically signed off work.
- It covers most illnesses and injuries: Unlike critical illness cover, any medical condition that prevents you from doing your job can trigger a claim, subject to policy terms.
- It pays out for the long term: Cover can be set up to pay out until you recover, retire, or the policy term ends, whichever comes first.
Consider the financial reality of long-term sickness. Statutory Sick Pay (SSP) in the UK provides a minimal safety net of just over £116 per week (2024/25 rate) for a maximum of 28 weeks. For most people, this is nowhere near enough to maintain their lifestyle and meet their financial commitments. Income protection is designed to bridge this critical gap.
Income protection provides a monthly, tax-free income if illness or injury prevents you from working. This allows you to focus on your recovery without the added stress of financial hardship.
Why Consider The Exeter for Your Income Protection?
The Exeter, founded in 1927, is a specialist protection and health insurer with a unique position in the market. As a mutual organisation, they reinvest profits for the benefit of their members, which often translates into better products and service.
Key reasons advisers and clients favour The Exeter:
- ‘Own Occupation’ as Standard: They offer one of the strongest definitions of incapacity in the market, protecting you in your specific job role.
- Specialist Underwriting: They have a strong reputation for offering cover to individuals who may struggle elsewhere, including those with well-managed health conditions or in higher-risk occupations.
- Excellent Claims Record: The Exeter consistently publishes high claims paid statistics. In 2023, they paid out 93% of new income protection claims, with the most common causes being musculoskeletal conditions, cancer, and mental health issues.
- Valuable Member Benefits: All policyholders get free access to their HealthWise app, providing remote GP appointments, mental health support, and more, from day one.
- Flexibility for the Self-Employed: Their policies are well-suited to the fluctuating incomes and varied working patterns of freelancers and business owners.
At WeCovr, we frequently recommend The Exeter to clients for whom a high-quality definition of incapacity and fair underwriting are paramount. Their commitment to paying claims and supporting members through difficult times makes them a trusted partner in financial protection.
A Deep Dive into The Exeter's Income Protection Cover
The Exeter’s primary income protection product is called Income One Plus. It is a highly flexible plan that can be tailored to your specific circumstances. Let's break down its core components.
1. The Definition of Incapacity: The ‘Own Occupation’ Gold Standard
This is arguably the most important feature of any income protection policy. The definition of incapacity determines the conditions under which the insurer will accept a claim.
The Exeter provides a true 'Own Occupation' definition for the entire duration of a claim.
What does 'Own Occupation' mean? It means the policy will pay out if you are unable to perform the material and substantial duties of your own specific occupation due to illness or injury. You will continue to be paid even if you could, in theory, do some other, less demanding or lower-paid job.
Example Scenario: The Surgeon A surgeon develops a tremor in their hands. They can no longer perform surgery, but they could potentially work as a medical lecturer or administrator.
- With an 'Own Occupation' policy: The Exeter would pay their full benefit because they cannot do their own job as a surgeon.
- With a lesser 'Suited Occupation' policy: The insurer might argue that they can work in a 'suited' role and could refuse to pay or reduce the benefit.
The Exeter's commitment to this definition for the full claim term provides the highest level of certainty and security, which is why it is considered the gold standard by financial advisers.
| Definition of Incapacity | Description | Suitability |
|---|---|---|
| Own Occupation | You are covered if you cannot do your own specific job. | Gold Standard. Ideal for everyone, especially specialists and skilled professionals. |
| Suited Occupation | You are covered only if you cannot do your own job or a similar job based on your skills and experience. | Less comprehensive. A claim may be declined if the insurer believes you can do another role. |
| Any Occupation / Work Tasks | You are covered only if you are so incapacitated you cannot do any job or perform a set number of basic tasks (e.g., walking, lifting, writing). | Lowest level of cover. Very restrictive and should generally be avoided. |
2. Waiting Periods (Deferred Periods)
The waiting period, or deferred period, is the time you must wait between becoming unable to work and when the policy starts paying out. You choose this period when you take out the policy.
The Exeter offers the following waiting period options:
- 4 weeks
- 8 weeks
- 13 weeks
- 26 weeks
- 52 weeks
How to Choose Your Waiting Period: The right choice depends on your personal financial situation. A longer waiting period will result in a lower premium.
- PAYE Employees: Check your employer's sick pay policy. If you receive 6 months of full pay, a 26-week waiting period would be a cost-effective choice.
- Self-Employed / Freelancers: You may have a smaller cash buffer. A shorter waiting period of 4, 8, or 13 weeks might be more appropriate, even if it costs more.
- Company Directors: Your decision may depend on how long the business can continue to pay your salary/dividends if you're not working.
Adviser Tip: Aligning your waiting period with your employer's sick pay is a smart way to reduce your premiums without creating a gap in your income. However, be mindful that if you change jobs to one with less generous sick pay, this gap could re-emerge.
3. Benefit Levels: How Much Income Can You Protect?
The Exeter allows you to protect a percentage of your pre-incapacity earnings. This ensures you have a clear financial incentive to return to work when you are able.
The maximum benefit is calculated as follows:
- 60% of the first £100,000 of your annual earnings.
- 45% of your annual earnings above £100,000.
The overall maximum benefit you can insure is £120,000 per year (£10,000 per month). All benefits are paid tax-free under current UK rules if it is a personal policy.
What counts as 'earnings'? The Exeter is flexible in how they assess income, which is a major benefit for non-PAYE workers:
- Employees: P60 and recent payslips.
- Company Directors: Salary and dividends. They can also consider P11D benefits.
- Self-Employed (Sole Traders/Partners): Your share of the net profit before tax, averaged over a suitable period.
It is crucial to insure the correct amount. Under-insuring will leave you with a shortfall, while over-insuring means you are paying for a level of cover you would not be entitled to at the point of claim.
4. Premium Types: Guaranteed vs. Age-Costed
The Exeter offers two ways to structure your premiums, giving you control over the long-term cost.
| Premium Type | How it Works | Pros | Cons |
|---|---|---|---|
| Guaranteed | The premium is fixed at the start and will not change for the life of the policy (unless you choose to index-link your cover). | Budget certainty. You know exactly what you'll pay in 5, 10, or 20 years. | Starts more expensive than age-costed premiums. |
| Age-Costed (Reviewable) | The premium is recalculated and increases each year based on your age. | Starts significantly cheaper, making cover more accessible, especially for younger applicants. | Becomes progressively more expensive over time and can become unaffordable in later life. |
Who should choose which?
- Guaranteed Premiums: Best for most people seeking long-term budget stability. You lock in the price based on your health and age today.
- Age-Costed Premiums: Can be a good option for those on a tight budget who need cover now (e.g., junior doctors, newly self-employed). The plan is to switch to a guaranteed rate policy later when their income increases. However, this relies on their health remaining good enough to secure new cover.
Our advisers at WeCovr can run illustrations for both options, helping you understand the total long-term cost and make an informed decision.
5. Benefit Payment Period
This determines how long the policy will pay out for during a single claim. The Exeter offers two main options:
- Full Term Cover: The benefit is paid until you either recover and return to work, you reach the end of the policy term (typically your planned retirement age, e.g., 68), or you pass away. This provides the most comprehensive protection.
- Limited Term Cover: The benefit is paid for a maximum of 2 or 5 years for any single claim. This is a cheaper option, but it leaves you exposed to the financial consequences of a very long-term or career-ending illness.
While limited-term policies are more affordable, we strongly encourage clients to prioritise full-term cover if their budget allows. The primary risk income protection is designed to mitigate is a long-term incapacity that exhausts all other savings and support.
Specialist Cover for Directors, Self-Employed & Freelancers
The Exeter's flexible approach makes them a go-to provider for business owners and independent professionals.
For the Self-Employed and Freelancers
Protecting a fluctuating income can be challenging, but The Exeter's underwriting is designed to help.
- Income Evidence: They can assess your income based on an average of the last 1-3 years of accounts, providing a fair reflection of your earnings.
- Short Waiting Periods: The 4 and 8-week options are ideal for those without employer sick pay to fall back on.
- Day One Cover: For an additional premium, you can add a feature that covers you from the very first day of incapacity, provided the illness or injury lasts longer than the main waiting period. This can provide a welcome cash injection to cover immediate costs.
For Company Directors: Executive Income Protection
Many directors pay themselves a small salary and a larger amount in dividends for tax efficiency. Some insurers struggle with this, but The Exeter understands it. They also offer a specialist plan called Executive Income Protection.
What is Executive Income Protection? This is a policy owned and paid for by your limited company, for your benefit as an employee/director.
Key Advantages:
- Tax Efficiency: The premiums are typically considered an allowable business expense by HMRC, meaning the company can offset them against its corporation tax bill.
- Benefit Payments: If you claim, the benefit is paid to the company, which then distributes it to you via PAYE. While the income is subject to tax and National Insurance, the policy can be set up to cover a higher amount (e.g., up to 80% of earnings) to offset this.
- No P11D Benefit: The premiums are not usually treated as a benefit-in-kind, so there's no extra personal tax to pay.
- Protects the Business: It ensures a key director can continue to receive an income without draining business resources during a long-term absence.
Executive Income Protection is a highly valuable tool for protecting the key people who drive a business forward.
The Exeter’s Added Value: The HealthWise Service
A significant benefit of choosing The Exeter is the immediate access to their HealthWise service, available via a smartphone app. This is provided free of charge to all members and their immediate families from the day the policy starts.
Key Features of HealthWise:
- Remote GP Appointments: Book a video or phone consultation with a UK-based GP 24/7, often for the same day. This is incredibly convenient and can help with quick diagnoses, prescriptions, and referrals.
- Second Medical Opinion: If you are diagnosed with a serious condition, you can get a second opinion from a world-leading specialist to confirm the diagnosis and explore treatment options.
- Mental Health Support: Access to a team of counsellors for support with issues like stress, anxiety, and depression.
- Physiotherapy: Get assessed and receive a personalised recovery plan for musculoskeletal issues.
- Dietitian Consultations: Expert advice for dietary-related health concerns.
These benefits are designed to help you and your family stay healthy and get support quickly, potentially preventing a minor issue from becoming a long-term problem that could lead to a claim. It's a proactive approach to wellbeing that adds huge value beyond the core insurance cover.
As part of our own commitment to customer wellbeing, WeCovr provides our protection clients with complimentary access to CalorieHero, our AI-powered calorie and nutrition tracking app, helping you manage your health proactively.
The Underwriting Process: Getting Cover with The Exeter
Underwriting is the process the insurer uses to assess the risk of you claiming before they offer you cover. This involves answering questions about your health, lifestyle, occupation, and hobbies.
The Exeter is known for its pragmatic and individual approach to underwriting. While many insurers use automated systems that can decline non-standard cases, The Exeter's underwriters often take the time to understand your specific situation.
This makes them a particularly good choice if you:
- Have a well-managed pre-existing medical condition (e.g., Type 2 diabetes, high blood pressure, a history of anxiety or depression).
- Work in a higher-risk occupation (e.g., a manual trade).
- Take part in hazardous hobbies.
Based on your application, The Exeter may:
- Offer cover on standard terms.
- Offer cover with a premium loading (an increased premium) due to a health or occupational risk.
- Offer cover with an exclusion (e.g., excluding claims for a specific pre-existing back condition).
- Request more medical evidence, such as a report from your GP or a nurse medical screening.
The Golden Rule of Underwriting: Full Disclosure It is absolutely vital that you answer all questions on the application form honestly and completely. Failing to disclose a material fact, even by accident, could give the insurer the right to void your policy and refuse a claim in the future. Working with an adviser ensures the application is completed accurately.
Common Exclusions: What Isn't Covered?
All insurance policies have exclusions. The Exeter's are standard for the UK market and are designed to protect against moral hazard and uninsurable risks.
Standard Exclusions typically include claims arising from:
- Intentional self-harm or suicide attempts
- Drug or alcohol misuse
- Criminal acts
- War, invasion, or acts of terrorism
- Normal, uncomplicated pregnancy and childbirth (though complications may be covered)
- Living abroad outside of the EU, USA, Canada, Australia, and New Zealand for more than 13 consecutive weeks
In addition to these standard exclusions, a specific exclusion may be applied to your policy based on your medical history, as mentioned in the underwriting section.
Making a Claim: The Exeter's Process
This is the moment of truth for any insurance policy. The Exeter prides itself on a straightforward and supportive claims process. In 2023, they paid 93% of new income protection claims, demonstrating a clear willingness to pay.
The process generally follows these steps:
- Contact The Exeter: As soon as you are unable to work and your doctor has signed you off, you should contact their claims department.
- Complete a Claim Form: You will be sent a form to complete, which will ask for details about your illness/injury, your occupation, and your earnings. Your GP or specialist will also need to complete a medical section.
- Assessment: The Exeter's claims assessors will review your form and medical evidence. They may need to contact your doctor for more information. They are assessing whether your condition meets the 'own occupation' definition of incapacity.
- Decision & Payment: Once the claim is approved, payments will be made monthly in arrears, directly to your bank account, after your chosen waiting period has passed.
The Exeter's claims team will keep in touch with you throughout your claim, offering support and access to rehabilitation services where appropriate, with the goal of helping you make a successful return to work when you are ready.
Final Thoughts: Is The Exeter Income Protection Right for You?
The Exeter offers one of the most comprehensive and flexible income protection policies on the UK market.
It is an excellent choice for:
- Professionals and specialists who need the security of a true 'own occupation' definition.
- The self-employed, freelancers, and company directors who need an insurer that understands their income structures.
- Anyone with a pre-existing health condition who has struggled to get cover elsewhere.
- Individuals who value the added benefits of the HealthWise service and the security of dealing with a member-focused friendly society.
However, no single insurer is the best choice for everyone. The 'best' income protection policy is the one that is correctly tailored to your occupation, health, budget, and family needs.
The UK protection market is complex, with dozens of providers offering different definitions, features, and pricing. The only way to be certain you have the right cover at the most competitive price is to seek independent advice.
An expert adviser at WeCovr can compare The Exeter's offering against policies from all the UK's leading insurers, including Aviva, Legal & General, Royal London, and LV=. We will guide you through the entire process, from choosing the right features and completing the application to placing your policy in trust, all at no extra cost to you.
Protecting your income is one of the most important financial decisions you will ever make. Take the first step today.
