In the past, income protection was something that was only relevant to people who had regular jobs and could be considered as a luxury. However, these days we live in a world where people find it increasingly difficult to maintain a stable income. This can have a significant impact on their ability to pay for things like their mortgage or rent payments and other household bills. In order to protect yourself from any financial hardship caused by an inability to work due to illness or injury, you should consider taking out an Irish income protection policy.
What is income protection?
Income protection is a type of life insurance that pays out a monthly income if you are unable to work due to illness or injury. It is designed to replace your income if you are unable to work, helping you meet the regular expenses associated with living in Ireland.
Income protection insurance can take several forms: traditional fixed benefit policies, which pay a fixed amount each month after an event has occurred, or critical illness cover, which pays out a lump sum payment upon diagnosis with one of many specified diseases. Each policy has different benefits and premiums so it’s important that you compare quotes before deciding which type best suits your needs.
If you need assistance choosing between these two types of policies, we highly recommend checking out our guide on how much income protection insurance should cost.
When is the right time to consider income protection?
When is the right time to consider income protection?
While there are no hard and fast rules, it is important to consider the following:
- Income protection is a long-term investment. It’s worth investing in because you never know when an illness, accident or other event may affect your ability to work.
- If you are self-employed or have a high risk of losing your job (such as being in construction) then income protection could be right for you.
- If you’re planning on starting a family and want to ensure that money isn’t an issue if something happens to either parent, income protection can provide peace of mind that your bills will continue being paid and any financial commitments will be honoured while one parent takes time off work due to pregnancy or childcare duties.
- Similarly, if someone in the family has a chronic illness and requires ongoing care from others around them – such as children needing help with schoolwork from their parents – then it might also make sense financially for both parties involved if one person reduced their working hours so they could stay at home full-time instead of returning back into employment once again after recovering from having surgery/illness/injury etcetera.”
What is the cost of income protection and how easy is it to get cover?
Income protection insurance is designed to help you continue to pay your monthly mortgage or rent, as well as household bills. It will also cover additional expenses such as childcare and travel costs.
The cost of income protection varies depending on your age and health status, as well as the amount of cover you want to secure. In general, it’s cheaper for younger people with good health – but that doesn’t mean it isn’t worth shopping around if you’re older or have a pre-existing condition.
However, there are some factors that can affect how much you pay for this type of insurance:
- Your occupation – Some jobs are considered riskier than others which means there might be higher premiums involved in getting coverage if you work in those fields;
- The size of your salary – The higher your salary, the more likely an insurer will be willing to cover you;
- How long your policy lasts – A longer duration would typically result in higher premiums because insurers know they will receive more money over time;
If you get turned down by one provider then don’t give up just yet! There are plenty more options out there so keep looking until someone says yes!
How does income protection work?
In short, income protection pays a monthly benefit to insured individuals who are unable to work due to illness or injury. This benefit is based on your pre-tax income and paid until you are well enough to return to work.
You may be considering applying for income protection if you have a job but feel concerned about how you’d cope financially if you were unable to attend work due to an injury or illness. It’s important that this anxiety isn’t dismissed as mere paranoia—losing one’s livelihood can be an incredibly stressful experience, even more so when it happens unexpectedly.
Income protection for self-employed workers in Ireland
If you’re self-employed, you can get income protection cover. This might not be the case in some other countries, but it is in Ireland. If you are working for yourself, or if your employer isn’t an insurance company, then we can help with your income protection needs.
If you’re self-employed and want to apply for a policy with us (or any other provider), then here’s what to expect:
- You won’t get tax relief on the premiums like employees do. However, because income protection policies are subject to tax relief under Section 192(1)(a)(ii)(II) of the Finance Act 2015 and Section 19(1)(a)-(b) of Finance Act 1999 (as amended by Finance Acts 2001 and 2005), there should be no difference between this method and having employee status when it comes to claiming back tax relief on premiums paid by employers on behalf of employees who were paying into their own pension scheme/income protection scheme etcetera as part of their contract terms;
- You can claim up to 12 months worth of cover per application; this is more than most insurers offer but less than some others offer – so make sure that whichever product takes your fancy has enough scope within its limits before committing yourself too much financially without knowing exactly what benefits might come out afterwards!
Does tax relief apply to income protection cover in Ireland?
In Ireland, tax relief is available to self-employed individuals who have purchased income protection insurance. If you are an employed individual or on a pension, then this advantage will not apply to you.
Tax relief is not available if you are a non-resident of Ireland.
How do I claim on an income protection policy?
If you have a valid claim, there are three things that must be done to make a successful claim on an income protection policy.
- You must be diagnosed with an illness or injury that meets the definition of a covered illness or injury.
- You must have exhausted all other sources of income, including sick pay from your employer and private medical insurance.
- You must be unable to work for at least 12 months.
What exclusions can be applied to my income protection policy?
There are some common exclusions that may be applied to your income protection policy. It’s important to know what they are, so you can plan ahead and make sure your policy is right for you.
- Self-inflicted injury: This means an injury caused by the insured person on themselves or another person. An example of this would be if a young boy decided to play with a blow torch, accidentally setting himself on fire and injuring himself in the process.
- Intentional acts: An intentional act is one that is done with intent or purpose by an insured person who knows exactly what they were doing when committing the act. For example, say that a man was trying to kill his wife but failed at doing so because she was able to escape unharmed. In this case, because he had tried intentionally (and unsuccessfully) at harming someone else, his insurance company might not cover any expenses associated with their injuries sustained from his failed attempt at killing them off!
Is there a maximum benefit payout under an income protection policy?
Your maximum benefit payout is the maximum amount of monthly income you can receive from your insurance company.
It is important to note that there are different caps for different types of insurance. For example:
- Some policies have a maximum benefit payout of €75,000.
- Some have a maximum benefit payout of €100,000.
- And some even go up to €150,000 and beyond!
How long can I receive payments under an income protection plan?
Depending on the policy, income protection can be for as long as you need it. In some cases, policies allow for a maximum payout of up to 100% of your income (though this will usually cost more). If you’re looking for a policy that offers longer benefits and lower premiums, try shopping around with different providers until you find one that suits your needs best.
If you are serious about protecting your family’s financial future, now is the time to protect yourself with an Irish income protection policy.
Not having income protection insurance can be a scary thought for many people, and it is one of the reasons why many of them don’t get their policy. However, you should know that it is possible to get this kind of coverage even if your income is low or irregular.
One way to do this would be by taking advantage of the fact that some companies will allow you to pay small monthly premiums so that they can build up a reserve fund that they can use when they need it most. Another option would be to look into getting an Irish income protection policy online through an independent agent who specializes in these kinds of policies and understands what matters most when trying to protect your family’s financial future
Conclusion
If you are serious about protecting your family’s financial future, now is the time to protect yourself with an Irish income protection policy.
