Income protection insurance costs vary based on several factors, including your age, occupation, health, the level of coverage, and the waiting or benefit period. On average, premiums typically range from 1% to 3% of your annual income. For example, if you earn £40,000 per year, you could expect to pay between £400 and £1,200 annually for coverage. However, if you work in a higher-risk occupation or have pre-existing health conditions, the cost may be higher. Adjusting factors like a longer waiting period or a shorter benefit term can also influence the overall premium.