Is you salary your main asset?
We are all used to insuring our motor cars, our homes and contents. But what about insuring our incomes in the event that we cannot work due to illness or injury.
Income Protection policies are designed to provide you with an alternative income if you suffer a long term illness or injury, which prevents you from working. It helps take care of your financial needs when money worries should be the last thing on your mind.
State Disability Benefit is currently around €13k per annum, so if you earn significantly more than that, then your inability earn would have a dramatic effect on your lifestyle.
If your salary dropped at this rate, food would likely be a priority week to week. Could you still afford your Rent or Mortgage, your Car or usual entertainment?
In the US the number one reason for Bankruptcy is Ill health.
An Income Protection policy will replace your income in the event that you cannot work due to illness or injury.
You can qualify for an Income Protection policy with most professions. But some are excluded.
- Income Protection provides you with a replacement income until you return to work, or until your chosen retirement date if you’re not fit to return to work before then. (55-70 yrs)
- You can have a policy commence payment to you from anywhere from 4 – 52 weeks.
- You can cover up to 75% (max €262,500) of your recent income, less social welfare benefits.
- Previous poor health or smoking doesn’t disqualify you but all of these factors will affect the cost of the cover.
One of the great benefits of Income Protection policies is that the premiums are tax deductible at your marginal rate.
A 30 yr. old, non-smoker, earning €60,000 p.a., wants €32,500 p.a cover to top up disability benefit, till 65 years of age, will pay as little as €35.12 p.m. or €19.27 p.m. with tax relief.
52 Week Deferral Period, a Level Benefit and a Reviewable Premium and is a Class 1 occupation.
The cost will increase if you – reduce the Deferral Period, have an occupation that is rated, smoke or are in poor health.
Call us for a personalised quote.
A company can also pay the premiums as a benefit, although the premiums are liable to BIK.