Income Protection

Income Insurance, also known as income protection provides you with a replacement income if you cannot work as a result of an illness or injury after a certain period of time. You can take out income insurance if you are in full-time work or are self-employed and earn an income. It protects you only in these circumstances – it will not be paid if you become unemployed. You must keep up your payments to stay on cover.

Benefits

It pays you a regular monthly income, replacing some of your earned income. Cover continues until age 65 or you return to work. Payments on your plan are eligible for income tax relief at your marginal rate of tax. However, if you do claim on this plan, your incapacity benefit will be treated as normal income and so is assessed for income tax, PRSI and the Universal Social Charge.

Cover is limited to:

– The maximum benefit payable is now €250,000, previously this was €150,000. Benefits paid are less any State benefits or other income protection plans.

– The maximum benefits payable is 75% of total yearly earnings, less any State benefits or other income protection plans.

Income Protection can replace your monthly income after an accident or illness for up to 75% of your earnings.

It’s a flexible policy that allows you to select the term of the cover (up to age 65).

You can also choose when the cover starts (8, 13, 26 or 52 weeks after the event).

Tax relief is available on income protection premiums paid and may reduce the cost of your cover by up to 40%.

The application process
– 
You will be asked for some financial and employment details.

 You will be asked to provide medical information to a qualified nurse on the phone.

Tax Relief 
You can claim tax relief on your premiums at your marginal rate of tax, up to a yearly limit of 10% of your total income.* Download the form from PAYE.

Cost depends on:

– The percentage of your income you choose to protect

– Your occupation – your job affects your premium as some occupations are higher risk than others. *

– The deferred period

– The term

– Your age

– Smoking status

– Your health & family medical history

*Not all occupations are covered.