Income Protection Awareness Week 2026 runs from 21 September; an annual campaign designed to highlight the importance of protecting one of your most valuable assets – your ability to earn an income.

People don’t think twice about insuring their homes, cars and mobile phones, yet they often overlook the income that pays for all of this. While most of us hope we will never face a serious illness or injury, the reality is that being unable to work for an extended period can place enormous pressure on household finances.

Physical illness is often the first thing that comes to mind when discussing income protection. However, recent figures show that mental health conditions are now playing an increasingly significant role in long-term absences from work.

According to the latest data from the Association of British Insurers (ABI) and Group Risk Development (GRiD), protection insurers paid out a record £7.84bn in claims during 2025, helping individuals and families cope with bereavement, illness and injury. That equates to around £21.5m every day.

More specifically, insurers paid £39m in individual income protection claims relating to mental health conditions, representing almost one in five (19%) of all income protection claims paid during the year.

Mental health issues can affect anyone, regardless of age, profession or lifestyle. Conditions such as anxiety, depression, stress and burnout often develop gradually and can make it impossible for someone to continue working for a period of time.

Unlike a broken bone or a physical injury, mental health challenges are not always visible. Yet their financial impact can be just as significant if they prevent an individual from earning a living.

For many households, a few months without income could quickly deplete savings and make it difficult to meet essential commitments such as mortgage repayments, rent, utility bills and day-to-day living expenses.

Income protection insurance is designed to provide a proportion of your income if illness or injury prevents you from working. Rather than paying a lump sum, it typically pays a monthly benefit until you can return to work, you retire, or the policy term ends.

Importantly, income protection policies often offer more than financial support alone. Many now include access to rehabilitation services, counselling support, virtual GP services and mental health resources that can help policyholders recover and return to work sooner. The latest ABI figures show that around 7,600 people returned to work during 2025 with the support of income protection payouts and related rehabilitation services.

We encourage clients to think about how they would cope if their income suddenly stopped. While nobody likes to dwell on worst-case scenarios, planning ahead can provide valuable peace of mind.

The latest claims data tells a powerful story and if you’re wondering whether insurance companies actually pay claims – in most valid claims they do. Industry data shows that 97.9% of individual protection insurance claims were paid in 2025, although claims are assessed against the terms and conditions of the relevant policy.

This Income Protection Awareness Week, take a moment to consider whether your financial plans include protection for your income. Mental health issues are now one of the leading reasons people claim on income protection policies, demonstrating that the need for cover extends far beyond physical illness alone.

If you would like to discuss your options and understand how income protection could help safeguard your family’s financial future, please contact your financial adviser. Eligibility for cover, policy terms, exclusions and premium costs will vary between insurers and applicants. Not all claims will be covered, and it is important to understand the terms of any policy before taking it out.