Deferred period (waiting period)

On an income protection policy, the deferred period is how long you must be unable to work due to illness or injury before benefit payments begin. Common choices include four, eight, 13, or 26 weeks, and sometimes longer.

A longer deferred period usually means a lower premium, because the insurer pays out less often and later. The right choice often depends on how long you could manage on savings or employer sick pay before the policy needs to start.

It helps to line the deferred period up with any sick pay you receive. If your employer pays you in full for a set period, choosing a deferred period that ends when sick pay runs out can keep the premium down while avoiding a gap in income.