Legal and General Income Protection UK: How It Works and Costs

How income protection works

Income protection pays a regular, usually tax-free benefit if the policyholder cannot work because of illness or injury. It is designed to replace part of lost earnings until recovery, retirement or the end of the policy term.

Unlike a lump-sum product, the benefit continues while the claim is valid, which makes income protection a long-term safety net for working households. Legal and General offers cover in this category alongside other protection products.

The benefit is typically capped at a percentage of gross earnings so that returning to work always pays more than claiming.

What Legal and General income protection covers

A Legal and General income protection policy pays out when the policyholder meets the policy's definition of incapacity and has been off work beyond the chosen deferred period. The definition of incapacity is central to how readily a claim is paid.

Policies are commonly written on an own-occupation basis, meaning a claim is assessed against the customer's own job rather than any job, though other definitions exist. The wording from Legal and General should be checked before buying.

Cover can be full-term, paying until retirement, or short-term, limiting each claim to a set number of years, which materially affects the premium.

Deferred periods and benefit terms

The deferred period is the waiting time between becoming unable to work and the benefit starting, commonly four, 13, 26 or 52 weeks. A longer deferred period lowers the premium but requires other resources to bridge the gap.

Customers often align the deferred period with any sick pay from their employer so cover starts when that runs out.

The benefit term sets how long payments can continue for a single claim, from a couple of years to the whole policy term.

Exclusions and definitions

Income protection excludes claims that fall outside the incapacity definition, and may restrict or exclude pre-existing conditions disclosed at underwriting. Accurate disclosure when applying to Legal and General protects the validity of a claim.

Some policies also restrict cover for conditions such as back pain or mental health unless specifically included, so the wording should be read with care.

The Consumer Insurance (Disclosure and Representations) Act 2012 requires customers to take reasonable care not to misrepresent their health and circumstances.

How to claim and your rights

A claim is made by notifying Legal and General, providing medical evidence and completing the deferred period. The insurer assesses the claim against the policy's incapacity definition and may request ongoing evidence while the claim continues.

If a claim is declined or a payment disputed, the customer can complain to Legal and General and, if unresolved within eight weeks, refer the matter to the Financial Ombudsman Service.

The FOS can direct the insurer to pay the benefit and award compensation where it finds the customer was treated unfairly.

What income protection costs

The premium for a Legal and General income protection policy depends on age, occupation, smoker status, the level of benefit, the deferred period and the benefit term. Manual or higher-risk occupations and shorter deferred periods both increase the cost.

Guaranteed premiums stay fixed for the policy term, while reviewable premiums can change at set points, which makes the headline price harder to compare across insurers without checking the basis.

Because income protection is a long-term commitment, customers should weigh the cost against the benefit it would pay and against other resources such as employer sick pay and savings before deciding the level of cover.

Frequently asked questions

How do I contact Legal and General about this?

Use the contact details on your policy documents or the official Legal and General website. Avoid third-party numbers that may add charges, and have your policy number ready.

What time limits apply?

For complaints, the firm has up to eight weeks to issue a final response, and you generally have six months from that response to refer the matter to the Financial Ombudsman Service.

Is the Financial Ombudsman Service free?

Yes. The Financial Ombudsman Service is free for consumers and independent of the firm. It can direct the insurer to put things right where it finds unfair treatment.

Does Legal and General have to follow FCA rules?

Yes. As an FCA-authorised firm, Legal and General must follow the regulator's rules, including the DISP complaint-handling rules and the Consumer Duty.

Where can I check the insurer is genuine?

The FCA register at fca.org.uk/register lists every authorised firm with its permissions and reference number, which is the best way to confirm an insurer is genuine. If a firm or website is not on the register, or claims permissions it does not hold, that is a warning sign worth investigating before handing over money or personal details.

What protection do I have if the insurer fails?

If an authorised insurer becomes insolvent, the Financial Services Compensation Scheme can protect policyholders, covering compulsory insurance such as motor liability in full and most other general insurance up to the scheme limits. This protection applies automatically and does not depend on who owns the firm.

Is this financial advice?

No. This is general information based on public regulatory sources. Kaeltripton is not FCA-authorised and does not provide financial advice.