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Income Protection

Income protection is a type of cover that provides an alternative income if you find yourself out of work due to accident, illness or injury. It means you can focus on your recovery.

  • Cover is available for self employed, employees and company directors.
  • The cost of income protection benefits from full relief at your marginal tax rate.
  • It can provide you with up to 75% of your income (including any eligible state illness benefit)  until you return to work or reach your retirement age.
  • It has a guaranteed level premium option which means the cost will never go up, even if you make a claim.
  • You can decide when benefit payments begin by choosing a deferred period from 4, 8, 13, 26 or 52 weeks.

You may need income protection if:

                    • You are self-employed and you have no other source if income if you couldn’t work due to an illness or disability
                    • You have little or no sick pay entitlement from your employer
                    • You are entitled to sick pay but only for a relatively short period hence would not provide for a serious illness
                    • You have no ill-health pension protection
                    • You have dependents who rely on your income
                    • You have no other source of income or money
                    • Benefits you may be entitled to would not be enough to replace your lost income and/or cover your normal expenses


Employers are not obliged to provide sick pay, 85% of private sector employees are fully dependent on the State Benefit after 6 months of absence. If you are an employee, here are two questions to ask your Human Resources department:

    • If I am absent from work, how much benefit is provided?
    • How long is the benefit provided for?

Self Employed, Company Directors & Key Staff:

  • Company pays monthly cost and avails of corporation tax relief
  • No BIK impact
  • Cover can include company pension contributions

Are you eligible to the State Illness Benefit, click here to view current information.