Income Protection Insurance Advice For West Yorkshire

Income Protection Insurance Advice For West Yorkshire2026-05-08T11:30:46+00:00

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Expert Income Protection Insurance Advice

Nobody wants to think about becoming ill or losing their job, but like most insurance policies, they’re there to protect you and your loved ones in the unfortunate event that something like that happens.

But to ensure yours and your family’s lifestyle is protected during such hard times, you have to think about these situations and put specialist cover in place for those eventualities. We’re here to make that process easier and less emotionally taxing for you and your family.

We understand that everyone’s busy and finding the time to sit down and think about ‘possible’ outcomes doesn’t always seem like the most pressing matter. But like the old adage says ‘you don’t know what you’ve got until it’s gone’ and that’s never been more true than with your health (or your loved ones) and your income.

We’re here to provide expert advice around the various options you have when it comes to income protection insurance. This is a long-term policy that provides you with tax-free income (usually around 50%-70% of your gross salary) each month if you can’t physically or mentally work due to illness or an injury.

It’s an extremely valuable policy for anyone who may struggle financially should you be laid off work for a significant amount of time due to injury or illness. Especially if your employer’s sick pay policy isn’t long-term or you’d only receive statutory sick pay (SSP).

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We’re here to answer any questions you may have around income protection policies and all they entail. Simply send us a message and we’ll be in touch.

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    Consent*
    We’ll only use the data you choose to enter here so that we can chat about your query. Personal information will be treated as confidential by us and held in accordance with the Data Protection Act 2018. Take a look at our privacy policy for more info.

    Income Protection Insurance: What You Need To Know

    Protects You In The Event Of Illness Or Injury

    Income Protection Insurance provides you with a percentage of your income in the event that an illness or injury prevents you from working. The monthly income usually equates to between half and two-thirds or your gross monthly earnings. However this income is tax-free.

    You Can’t Claim Straight Away

    You can’t claim any income from your policy straight away once you become ill or have an injury. You usually have to wait a minimum of four weeks before income from the policy starts to arrive. However you get to choose how long this period is when taking out the policy to align with any sick pay your employer may provide you with. It’s important that you notify your insurer straight away to start the claim process though.

    The Monthly Cost Varies

    The monthly amount you pay for your income protection insurance policy varies depending on a multitude of aspects. Premiums tend to increase with age and if any medical conditions could increase the likelihood of an illness. Higher risk jobs will also increase your monthly premium as will opting for a larger monthly amount of cover in the event you claim. The monthly payment tends to sit between £5 – £50.

    Doesn’t Cover Unemployment

    Income protection insurance can sometimes be mixed up with Unemployment Protection Insurance and Critical illness Cover. Income protection Insurance doesn’t cover you in the event of unemployment as it’s designed to cover your income until you’re fit to return to work. Critical Illness Cover provides you with a tax free lump sum if you’re diagnosed with a serious illness such as cancer or you suffer a heart attack or stroke.

    It’s Important To Be Honest

    During the application process it’s important to give your insurer full details regarding both yours and your family’s medical history. If you omit anything during this process and then try to make a claim later on down the line, they may refuse to pay out. Whilst sharing information on pre-existing medical conditions, dangerous hobbies and lifestyle habits that can affect your health may increase your monthly premium, it ensures your agreed cover is in place and you can make a claim.

    Three Levels Of Cover

    You usually have three options when it comes to the level of cover you’d like to take out. ‘Own Occupation’ cover is for when you can’t do your own occupation. It’s usually the most expensive, but the most likely when it comes to a successful claim. ‘Suited Occupation’ covers a situation when you can’t do your job or a similar one that matches your experience. Whilst ‘Any Occupation’ is for when you’re too ill or injured to do any work. This is often the most affordable policy, but there’s a higher risk of not paying out too.

    What To Expect

    1

    Get In Touch

    Let us know your specific income protection insurance requirements and any questions you have either via our online form, email or a phone call. The more details we know, the sooner we can start to help.

    2

    We’ll Assess Your Needs

    Our team of experts will review and assess your needs, allowing us to understand your situation and how we can help.

    3

    Advice Tailored To You

    One of our expert financial advisers will be in touch to discuss your specific income protection insurance requirements and will work with you to find the right policy for your needs.

    How We Can Help

    Here at Oakworth, we make it our mission to understand you as a person and your specific situation. This helps us to provide you with tailor-made advice that helps you to choose the right income protection insurance policy for your specific needs.

    We’ll sit down with you to understand what monthly payments you can afford based on your current incomings and outgoings and what amount of cover would be required to comfortably cover your living situation. Our goal is to ensure suitable financial protection is in place for you and your family in the event that you suffer an injury or illness that stops you from working.

    As independent financial advisors, we have access to the entire market, allowing us to efficiently and comprehensively analyse all the potential providers and plans you can take advantage of. Our wealth of experience will ensure you receive expert advice and recommendations throughout the entire process.

    So if you’re looking for a financial adviser that truly cares about protecting you and your loved ones financially in the event of an illness or injury, look no further than Oakworth Financial Planning.

    FAQ’s

    In the event of illness or an injury that prevents you from working, Income Protection Insurance pays you a regular monthly income to help cover a percentage of lost earnings. This continues until you return to work or retire.

    Unfortunately you can’t claim 100% of your monthly income, however you’ll usually receive between 50%-65% of your gross monthly earnings, depending on what you agreed to when taking out the policy.

    Whilst payments won’t start as soon as you become ill or have an injury, it’s important to notify your provider as soon as you know you’ll be needing to make a claim to get the process started. You usually have to wait a minimum of 4 weeks to start receiving payments, but again, you can select the specific timeframe that you need to wait when setting up the policy.

    Income Protection Insurance is certainly a worthwhile policy to take out, especially if your employer doesn’t provide sick pay and you’ll only receive Statutory Support Payments (SSP) from the Government in this situation or if you’re self-employed. As of 6th April 2026 you can only claim up to £123.25 per week for standard SSP and this only lasts up to 28 weeks. A rather big drop off for anyone who finds themselves in this unfortunate situation.

    If you’re self-employed then of course you don’t benefit from any employer provided sick pay and generally don’t qualify for statutory sick pay either. So an Income Protection Policy can help provide you with the safety net you need in the event of illness or injury that prevents you from working.

    If you don’t have enough savings set aside, then taking out an Income Protection Policy also makes sense. But even if you do, maybe you wouldn’t be happy using your savings to cover lost wages, especially if you’ve earmarked it for something else such as a large purchase or a holiday.

    If your employer has a generous sick pay policy to cover you in this situation and enough savings to cover your bills, then it may not be the right policy for you. But when over 50% of households say they would struggle to cover expenses if the main earner fell ill, it’s certainly worth considering at least, no matter what situation you find yourself in.

    No, standard Income Protection Insurance policies aren’t designed to cover you in the event of redundancy. They only pay out if you can’t work due to illness or injury. To ensure you’re covered in the event of redundancy, you need to set up Redundancy Insurance, which is often referred to as Accident, Sickness and Unemployment (ASU) cover.

    However some Short-Term Income Protection (STIP) policies could include a certain amount of involuntary redundancy cover, but you need to ensure that’s included if you want to make sure you’re covered in this situation and you take out that sort of policy.

    Yes, self-employed people can set up Income Protection Insurance policies, in fact it’s highly recommended as the self-employed don’t generally qualify for Statutory Sick Pay and of course don;t benefit from any employer provided sick pay.

    You can typically cover up to 65% of your gross monthly income with a Self-Employed Income Protection policy. Insurance providers will usually work out an average of your recent earnings (often the last 12-24 months) if your monthly income tends to fluctuate from month to month when deciding how much you’ll receive each month.

    Generally personally paid insurance protection premiums aren’t tax-deductible, but because they’re paid from post-tax income, any benefits you receive from such personal policies are usually tax-free. However, if you take out an Executive Income Protection policy and the premiums are paid through your limited company, they may be treated as a tax-deductible business expense.

    Income protection policies generally enable you to insure around 50% to two-thirds of your gross income, this is intended to represent your net take-home pay each month. However, if you’re using a limited company, it’s recommended that you contact us or another financial advisor to discuss the tax implications and ensure they’re managed correctly.

    Yes, you can usually claim Employment and Support Allowance (ESA) whilst receiving Income Protection Insurance (IPI), but it may affect how much you receive. The newer Combination Based ESA isn’t generally affected by your IPI, but Income related ESA or Universal Credit (UC) may be reduced in this instance.

    If you find yourself in this situation our expert financial advisors can help ensure you have all the information you need to make an informed decision regarding any Income Protection Insurance policy you’re looking to set up.

    Income Protection and Life Insurance differ in both their intended purpose and their payout structures. Income protection is designed to support you financially in the event you can’t work due to illness or injury, providing you with a monthly payment.

    Whereas Life Insurance policies are designed to provide your beneficiaries with a lump sum upon your death or terminal illness diagnosis to help them financially.

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    Registered in England: 03888445 at 45 Newgate, Pontefract, West Yorkshire, WF8 1NB. Authorised and Regulated by the Financial Conduct Authority for Investment Business. Our aim is to provide you with a professional service that delivers the highest possible standards. However, should you wish to make a complaint, you can do so by writing to [email protected] or phoning us on 0800 018 6020. If you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service at www.financial-ombudsman.org.uk or by contacting them on 0800 023 4567.

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