Income protection in Leeds
Income protection insurance
If you live in Leeds and have a mortgage, or have a family who relies on what you earn, it is worth asking a simple question: what would you live on if you couldn’t work for months because of illness or injury? Most of us insure our cars and our phones without thinking twice, yet the thing that pays for all of it, your income, often goes unprotected.
That is what income protection insurance is for. On this page we explain what it is, how it works, and how to decide whether you need it, in plain English. No jargon and no pressure; we want you to have a clearer view of where you would stand. If you would rather talk it through, our protection advisers in Leeds are here to help.
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What is income protection insurance?
Income protection insurance is a policy that pays you a regular, tax-free income if illness or injury stops you from working. Unlike cover that pays a single lump sum, it replaces part of your salary month after month, usually up to or around 60% of your gross earnings, so you can keep paying your mortgage, bills, and the weekly shop while you recover.
The payments carry on until you are well enough to return to work, the policy term ends, or you retire, whichever comes first. That makes it different from most other protection insurance. It is built for the long haul rather than a one-off event, which is why it is often described as the cover that protects your earning ability.
It also covers a very wide range of situations because it pays out when you cannot work, rather than only for a fixed list of named illnesses. It can help everything from a serious back problem to cancer, a mental health condition or even an accident. The most common reason for a claim is not what many people expect: musculoskeletal problems such as back and neck pain made up 34% of all individual income protection claims paid in 2024 (ABI, 2024).
How does income protection work?
When you take out a policy, you choose a few key things with your adviser: how much monthly income you want to cover, how long you want the payments to last once a claim starts, and how quickly you want them to begin.
That last choice is called the deferred period, sometimes called the waiting period. It is the gap between becoming unable to work and the policy starting to pay, and common options are 4, 8, 13, 26 or 52 weeks. The longer you are happy to wait, often because you have savings or some employer sick pay to bridge the gap, the lower your monthly premium tends to be. Choosing the right deferred period is one of the simplest ways to shape the cost of a policy around your own circumstances, and it is exactly the kind of decision an adviser helps you get right.
When a valid claim is made, the insurer pays the agreed monthly amount directly to you, tax-free, and you are free to spend it on whatever matters most, whether that is the mortgage, childcare or day-to-day living. Many modern policies also include practical support alongside the money, such as access to remote GP services or rehabilitation to help you back to work when you are ready.
Statutory sick pay only stretches so far
A lot of people assume that if they were signed off sick, their employer or the state would keep them afloat. It is worth checking that assumption. Statutory Sick Pay (SSP) is currently £123.25 a week for the 2026 to 2027 tax year and lasts a maximum of 28 weeks (GOV.UK). For most households in Leeds, that is a long way below what the mortgage and the bills actually cost each month.
If you are self-employed or a contractor, the picture is starker still: there is no SSP at all, and no employer scheme to fall back on. Your income simply stops. That gap between what you would receive and what you actually need is the space income protection is designed to fill.
Income protection, critical illness cover or life insurance?
These three types of cover are easy to muddle up, and plenty of people hold more than one. The simplest way to think about it: income protection replaces your income while you are alive but unable to work, critical illness cover pays a lump sum if you are diagnosed with a specific serious illness, and life insurance pays out when you die. Here is how they compare, with the average individual claim paid in 2025.
| Type of cover | What it helps with | Avg individual claim (2025) |
|---|---|---|
| Income protection | A regular replacement income if illness or injury stops you from working, paid until you recover, the term ends or you retire. | £10,700 |
| Critical illness cover | A tax-free lump sum if you are diagnosed with a serious illness named in your policy, while you are still living. | £67,000 |
| Life insurance | A lump sum for your family if you die during the policy term, often used to clear the mortgage. | n/a |
Source: Association of British Insurers, 2025 claims data. Income protection pays a regular income rather than a single lump sum.
Across all these types of cover, the industry pays the vast majority of claims: 97.9% of new individual protection claims were paid in 2025. In the same year, insurers paid out £7.84 billion in protection claims, the equivalent of £21.5 million every day (ABI, 2025). The main reasons a claim is turned down are non-disclosure of a health condition when applying, or the situation not meeting the policy definition, which is where honest, well-advised applications really pay off.
Do you need income protection?
Not everyone does, and we will always be straight with you about that. It usually comes down to one question: if your income stopped tomorrow because you were too ill to work, how long could your household cope, and what would you have to give up? A few situations where it is worth a proper look:
- •You have a mortgage in Leeds that depends on your income to keep it maintained.
- •You are self-employed or a contractor, so there is no employer sick pay to help you.
- •Your savings would only cover a few months of essential outgoings.
- •You have children or a partner who relies on your income.
Take Priya, a self-employed graphic designer in Chapel Allerton with a mortgage and a young family. She has no employer sick pay, and her savings would cover maybe three months. If a back injury kept her from working for six months, income protection with a short deferred period could replace a good part of her income throughout, so the mortgage keeps being paid and a health setback does not turn into a financial one as well.
If, on the other hand, you have generous employer sick pay, substantial savings and no dependants, you may decide you need little or no cover. The point is to understand your current situation and choose ahead of an issue rather than leave it to luck.
How much cover do you need, and what does it cost?
As a rule of thumb, most policies let you cover somewhere around half to two-thirds of your gross income, and it is sensible to aim for enough to meet your essential outgoings: your mortgage, utilities, food and any other cover you pay for. There is little point insuring more than you would actually be allowed to claim.
On price, the honest answer is that it depends, because the premium is built around you. The main factors are your age and health, whether you smoke or vape, your occupation, how much income you want to cover, the deferred period you choose and how long you want payments to last. A younger non-smoker in a low-risk job will usually pay less than someone older or in a more hazardous role.
If a quote comes back higher than you hoped, there are usually options to help, such as a longer deferred period or a slightly lower level of cover. We will talk you through the trade-offs honestly rather than simply selling you the biggest policy.
Income protection for the self-employed and contractors
If you work for yourself, income protection often matters more, not less. With no SSP and no employer scheme, your policy is the whole safety net. Cover for self-employed people generally bases your income on your share of profits or your drawings, so it is worth getting advice on how your particular set-up is assessed.
For contractors, some insurers will look at your day or contract rate rather than company accounts, which can work in your favour. This is one of the areas where speaking to an adviser saves the most time and avoids nasty surprises at claim time.
How our Leeds protection advisers can help
Feel Good Financial has been advising clients since 2012, and in 2025 we helped arrange over £251 million in mortgage lending. We also arranged protection for 85% of our mortgage customers, because protecting the home and the people in it is part of the same conversation for us, not an afterthought.
When you speak to one of our advisers, we start with your situation: your income, your mortgage, your family and what would worry you most if things went wrong. Then we research the market and recommend cover that genuinely fits, explaining the deferred periods, the payout terms and the cost in language that actually makes sense. No jargon, no hard sell, and no making you feel awkward for asking questions.
We also stay with you after the policy is in place, because life changes and your cover should keep up. If you are an employer, the same thinking is available to your team through the Feel Good Hub, our platform that gives staff access to financial advice and workplace benefits, including group income protection.
Speak to an income protection adviser in Leeds.
Not sure whether income protection is right for you?
Book a free, no-obligation chat with one of our Leeds advisers. We will explain your options clearly and help you decide what fits, with no pressure either way.
Income protection FAQs
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For many people with a mortgage, a family or no employer sick pay to fall back on, yes, because it turns months of lost income from a crisis into something manageable. Whether it is worth it for you depends on your commitments, your savings and any sick pay you would receive. Our advisers can help you weigh that up honestly.
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Because it pays out when illness or injury stops you from working, rather than for a fixed list of illnesses, it covers a very broad range of situations, from musculoskeletal problems and serious illness to many mental health conditions. The exact terms and any exclusions vary by insurer, which is one of the things we check for you before you commit.
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That depends on the policy you choose. Short-term policies pay for a set period, often one or two years per claim, while full or long-term policies can pay right up until you recover, the term ends or you retire. You also choose a deferred period at the start, which is how long you wait before the payments begin.
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Yes, and it is often more important for self-employed people and contractors because there is no sick pay to rely on. Insurers assess your income differently when you work for yourself, so it is worth getting advice to make sure the cover is set up correctly for how you are paid.
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They do different jobs, and many people hold both. Income protection replaces your income month by month while you cannot work; critical illness cover pays a one-off lump sum if you are diagnosed with a specific serious condition. If your budget is tight, an adviser can help you decide which matters most for your circumstances.
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There is no flat price, because it is based on your age, health, job and the cover you choose. The only way to know your figure is a proper quote built around your details, and if it comes back higher than expected, there are usually ways to bring it down. Your first conversation with us is free, and we will always explain any costs before you commit to anything.
Important Information:
Your home may be repossessed if you do not keep up repayments on your mortgage. Think carefully before securing other debts against your home. Changes in interest rates may affect your monthly repayments. Ensure you understand the terms and risks before proceeding, There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is £695 for a purchase application and £300 for a remortgage.