How Much Income Protection Cover Do You Need?

Understand how the savings-runway calculation relates to a possible interruption of income.

Use the Income Protection Estimator alongside this illustrative example.

A practical example

With essential spending of 2,000 per month and emergency savings of 6,000, the simple savings runway is three months. If employer sick pay lasts two months, the model combines them as five months. That assumes sick pay covers the spending and that all entered savings remain available.

Check the result

Check what sick pay actually pays, when it begins and whether debts or irregular bills change essential spending. A model that adds full months cannot describe a partial salary or an exclusion in an insurance policy.

Try a comparison

Reduce emergency savings from 6,000 to 4,000 while holding essentials at 2,000. Savings runway falls from three to two months. This describes self-funding capacity; it does not establish what an insurer would pay or when a policy would start.

What this does not establish

The output does not establish eligibility for benefits or recommend a policy. Discuss definitions, waiting periods and exclusions with a qualified provider.

Report unclear guidance or a result that needs checking.