Income Protection Insurance


No one wants to think about falling ill or losing their job, but having financial protection can give you the peace of mind you need if anything were to happen. Taking out income protection cover could offer you and your family the security you are looking for. 

Oakworth Financial Planning can help. We have put together this guide on what income protection insurance is, how to qualify for income protection cover and the different types of policies you can take out. 

What is Income Protection Insurance?

Income protection insurance is also known as permanent health insurance. It is designed to provide you with financial support if you find yourself in a situation where you are unable to work. This could be if you have had an accident or fall ill. There are several types of income protection insurance, which include short-term or long-term cover, depending on your needs. 

What does an Income Protection Insurance Policy Cover?

Sometimes mistaken for critical illness insurance, which pays out a one-off lump sum, income protection insurance means you will continue to receive a regular income until you are able to return to work.

An income protection insurance policy can work in these ways: 

  • Replacing part of your income if you cannot work because you fall ill or have an accident
  • Covering most illnesses that leave you unable to work, whether that is short-term or long-term
  • The policy can continue to pay out until you can start working again, retire, or the policy ends
  • The payments usually begin after your sick pay ends
  • You can claim as many times as you need whilst the policy is valid. 

How do you qualify for Income Protection Insurance? 

Falling ill or having an accident are just a couple of things that can impact your income. You may have savings to fall back on or company sick pay, but this might not be enough to maintain your lifestyle and pay the bills, especially if it is for a long period of time.

So, if you work in full time or part-time employment or are self-employed, you should consider income protection insurance. It can give you the peace of mind that, should anything happen, you have the financial support you need.

Income protection insurance can cover up to 50-75% of your salary, so we recommend also checking with your employer what they will provide for you if you are off sick. 

Do employers offer income protection? 

It is a good idea to check with your employer or in your employee benefits package whether your employer offers you income protection. If they do, this is known as group income protection. 

Group income protection allows employers to choose a policy cover that fits their business needs and budget. They can choose the length of cover, what percentage of salary it pays out and how long the employee must be off work before the benefits kick in. 

Do I need Income Protection Insurance? 

People might not need to take out income protection insurance due to a number of reasons: 

  1. Your sick pay is enough to cover the costs – your employee benefits package includes group income protection
  2. You could survive on government benefits 
  3. You have enough savings to support yourself
  4. Your family or partner could support you – they have enough income to cover everything the two of you need
  5. Take early retirement – if you are near the retirement age, you might be able to retire early. 

Even if you believe you could survive without extra financial support through income protection cover, it is always good to have a back-up and give yourself the security you need, so you don’t need to worry about your finances. At Oakworth Financial Planning, we can help protect both you and your family from life-changing situations.

What’s the difference between short-term and long-term Income Protection?

Depending on your needs and circumstances, you will need to choose between short-term or long-term income protection cover. 

Short-Term Income Protection 

This type of income protection insurance usually lasts for one or two years and covers any loss of earning through illness or injuries which leave you unable to work for a short period of time. 

Long-Term Income Protection 

This type of income protection insurance is better suited for more serious circumstances which last for longer than one or two years. Long-term income protection starts from five years of cover and can last you up until retirement. 

How much does Income Protection Insurance cost?

How much you pay for income protection depends on the policy you have and also your circumstances. It covers a wide range of illnesses and situations, so you do not need to worry.

The cost of the policy varies on a number of factors like: 

  • Age 
  • Job
  • Percentage of your income you’d like to cover
  • Current health status

Here at Oakworth Financial Planning, we believe that income protection insurance does not need to be expensive, and our tailored protection solutions are created to give you exactly what you need, at a price you can afford.

Why choose Oakworth Financial?

With our wealth of experience, we are able to analyse all the plans and providers out there to find the right option for you. Being independent financial advisors also ensures that we will only ever present the solutions that we feel are the best for your circumstances, rather than being restricted in what we can offer.

During every initial meeting we go through the exercise of learning more about you and your personal circumstances. This allows us to highlight any protection gaps that may exist.

Get in touch today to discuss how our income protection services can benefit you and your family’s future income.

Get in touch

We’d love to hear from you. Contact us via the below or complete the form and one of our friendly team will be in touch.


Oakworth House, 45 Newgate, Pontefract, West Yorkshire, WF8 1NB.



0800 018 6020

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