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.