New research from LifeSearch and HomeOwners Alliance reveals that only a small minority of UK homeowners correctly understand what income protection covers - with confusion particularly pronounced among existing policyholders and the under-35s.
The mental health myth
Mental health is one of the most significant blind spots. More than a quarter (26%) of homeowners wrongly believe income protection does not cover conditions such as anxiety or depression. Among those who already hold a policy, this rises to one in three (34%), and to 37% among the under-35s.
Only a quarter of homeowners correctly understand that mental health is covered. Nearly half (48%) say they do not know. Mental health has been cited as the leading reason for both short and long-term absences in the workplace, and according to the ABI, mental illness is one of the top IP claims and accounted for the highest value of claims in 2024, at £37 million.
Self-employed protection gap persists
The research from LifeSearch and HomeOwners Alliance also highlights a continued misconception around eligibility. One in six homeowners (16%) believe the self-employed cannot access income protection, rising sharply among younger groups (31% of under-35s) and those that already hold cover (28%). A further 38% do not know whether this is true.
With more than 4.3 million people now self-employed in the UK, this misunderstanding risks excluding a large and often more financially exposed group from considering protection at all.
Second earners overlooked
The research also points to a gap in how households think about risk. Nearly one in five (18%) homeowners believe only the main earner needs income protection, with uncertainty particularly high among younger households (30% of under 35s) and those with children (26%). One in four (26%) of people who currently have an IP policy also agree that it is something that only the main earner of the home needs.
In reality, many households rely on two incomes to cover essential spending such as mortgages, utility bills, and other living costs. In 2024, joint first time buyer mortgage applications reached 62%. If a second earner cannot work, statutory sick pay is unlikely to cover essential outgoings.
Everyday claims still underestimated
More than a third (36%) of homeowners believe income protection only pays out for permanent or very serious conditions. This rises to nearly half (49%) of under-35s and to 45% of existing policyholders. A further 36% of homeowners do not know what conditions are covered. This is echoed by CIExpert’s new Critical Thinking report5, which found that consumers believe the top claims for IP are cancer, serious physical injury and heart attack. According to the ABI, musculoskeletal issues and mental health are the key causes for claims.
This myth risks discouraging people from claiming when they are entitled to support - or, worse, from taking out a policy at all. Broken bones, recovery from surgery, and conditions that take weeks or months to resolve can all qualify, depending on the policy terms.
Claim frequency
Over a fifth (22%) of homeowners believe they can only claim once on an IP policy – rising to 26% of those that currently have a policy and 36% of under 35s - while most policies allow multiple claims in reality.
Debbie Kennedy, CEO of protection specialist LifeSearch, said: "Income protection can provide a valuable safety net to so many people, yet this research shows there’s still a real gap between how people think it works and what it actually provides.
“At LifeSearch we see this play out in real conversations every day. These misconceptions reflect an industry that has historically done a better job of selling protection than explaining it. If we want customers to value their cover, renew it, and tell others about it, then clearer communication, better ongoing engagement and stronger product understanding need to become the norm - not the exception."
Paula Higgins, CEO of Homeowners Alliance, said: “These findings reveal a clear gap between perception and reality when it comes to income protection. Many homeowners wrongly believe it won’t cover mental health, isn’t available to the self-employed, or only pays out for serious conditions - leaving them more financially exposed than they realise.
“At a time when more people are self-employed and households depend on two incomes, these misconceptions matter. Income protection can provide vital support if illness or injury stops you working, yet too many people either misunderstand it or overlook it entirely.
“There’s a real need to improve awareness so people understand what cover is available before it's too late.”
HomeOwners Alliance partnered with LifeSearch in January 2025 to help more people access and purchase protection products. HomeOwners Alliance visitors benefit from access to a dedicated team of protection specialists who guide them through the process of securing protection, from personalised needs assessments to claims support.
LifeSearch is one of the UK's leading protection advice specialists, blending technology with expert human advice. Since 1998, it has helped over one million people, families and businesses secure 1.7 million policies through its team of 280 specialist advisers. LifeSearch has innovated by embedding protection into wider conversations, reaching consumers in underserved markets to support its ambition to protect people properly.
