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Income Protection

income protection
Income Protection

Cover if cannot work due to illlness ,accident ,injury or disability.

How long am I covered ?
You will receive an income until you return to work, and if you are unable to return to work , your replacement income will be paid until your chosen retirement age (65 for most people).

Do I need income protection ?
You may need income protection if

  • you are self-employed and would have no source of income if you couldn’t work  due to illness or injury.
  • you have little or no sick pay arrangement from your employer.

How do I benefit ?
Income Protection provides you with a replacement income in the event that you are unable to work due to any illness or injury for a set period, known as the “deferred period”. It is the time between a valid claim and the commencement of benefit payments. When you take out your policy, you can choose what deferred period suits you best, from 13 weeks, 26 weeks or 52 weeks. The deferred period you choose will have a impact on the cost of a policy. A deferred period of 13 weeks will be more expensive than a policy for 26 weeks, or 52 weeks, because your benefit would start sooner.

How much income will I get ?
The maximum income you are allowed to protect is 75% of your gross income lessany other income you get while out of work , such as sick pay or social welfare.

How much does income protection cover cost ?
Costs will depend mainly on

  • The amount of cover
  • The deferred period
  • The term of the policy

After that ,the main factors are your age, gender, health, family medical history,job and lifestyle.

Your job affects your premium because some jobs are riskier than others.Insurance companies put jobs into classes, and charge different premiums for each class.

You can get tax-relief on your monthly premium at your marginal (Highest) rate of tax.This makes the premiums more affordable, but remember your benefit will be taxable if you have to claim.