Income Protection Insurance can provide for both you and your family. There are many ways we use our income; it pays our bills and daily livings expenses that allow you to lead your lifestyle. If your income suddenly stopped it would drastically change your lifestyle.
Income Protection is a highly tax efficient means of protecting your income in the event of long-term injury or illness which leaves you unable to work. If you are either in full-time employment or self employed and earn an income you can take out an income protection plan and potentially receive tax relief of up to 40% off the regular premium.
Income Protection is designed to provide you with a replacement income if you are unable to work on a medium to long-term basis due to illness or injury. It will pay out after a predetermined time period as chosen at the outset which can be either 4, 8, 13, 26 or 52 weeks – the longer the deferred period, the lower the premium.
Typically the deferred period chosen will dovetail with your sick pay entitlements (if any) where applicable e.g., if your sick pay entitlements cover you for three months then you might choose a deferred period of 13 weeks.
Income protection can replace up to 75% of your income if you are off work long-term due to illness or injury. The insurance will continue to pay a regular income up to age seventy or until you are well enough to return to work.
The cost of your income protection policy will depend on your age, income, health, occupation and the level of benefits chosen. At Yourbroker we will search the Irish market to provide you with the best possible income protection plan at the best possible premium.
• Pays you a regular income replacing up to 75% of your earned income.
• Premiums on your plan can qualify for tax relief of up to 40%.
• Cover available up to age seventy.
• Premium waiver- you will not pay for your cover while in receipt of benefit.
• Premiums can be fixed.
• Indexation available to protect against inflation.
• Non-smoker discount.
Income Protection Insurance FAQ
What is Income Protection Insurance?
Income Protection is an insurance policy which can replace up to 75% of your usual income less any social welfare payments when you are off work due to an illness or injury.
What does my plan cover?
Your plan will protect your income against any illness, injury or disability.
Why do I need Income Protection Insurance?
When illness, injury or disability prohibits you from working, you need to know that you can stay on top of the bills and maintain your lifestyle. If you do not have an alternative source of income, how would you maintain the lifestyle that you have grown accustomed to?
How much will it cost?
The cost of your cover is broadly linked to three factors. The amount of cover, i.e. the percentage of your income protected, your deferred period and the length of your policy. Other factors that can impact the cost of cover are your age, health, occupation, medical history and lifestyle.
What is a deferred period?
This is the initial waiting time at the start of your claim. You can choose from 4, 8, 13, 26 or 52 weeks from when you put your policy in place.
Is Tax Relief available on premiums?
Yes, tax relief is available on income protection insurance premiums at either 20% or 40%.
Does yourbroker deal with all the Income Protection Insurance providers?
Yes, we deal with all providers. Friends First, Irish Life, New Ireland, Aviva and Royal London.
Does yourbroker charge a fee?
No, we do not charge any fees for setting up your plan.
Can I can cancel my policy anytime?
Yes, you can cancel your policy any time with no penalty.
Can I claim more than once on my policy?
Yes, there is no limit to the number of claims or length of any claim.
Is there personal tax on an Income Protection Insurance benefit?
Income Protection policies provide you with a replacement source of income, therefore it is still subject to the normal tax regime that applies to you.
Does income protection cover redundancy?
Income Protection does not cover redundancy, it provides for replacement of income if you are unable to work due to ill health.
How long will my Income Protection benefit be paid if I am out of work?
Your Income protection plan will pay you a regular income until you are able to go back to work or until your policy ends (usually on the day that you retire).
What if I change jobs, do I need to let you know and will my premiums change?
Your policy will continue to provide cover if you change jobs, regardless of what the new job entails.
How is Income Protection different from Specified Illness cover?
You can make a claim on your Income Protection if any illness, injury, accident or disability that prevents you from working. You can make a claim on your specified illness cover if you are diagnosed with an illness named in your policy.
Will the benefit increase during a claim?
The benefit will remain level throughout the duration of the claim. You can, however, opt at proposal stage, to have the benefit increase at 3% per annum whilst in payment. If you choose this option, the benefit will revert to the original amount once the claim has finished.
I am a Company Director. Can my company pay the premiums?
Yes, under an Executive Income Protection plan your company can pay the premium and it can be treated as a business expense.
Do I still pay the premiums if I am receiving the benefit?
Typically, you do not have to continue paying the premiums while you are receiving payment of the benefit. However, once you are finished your claim, you must recommence payment of the premiums to maintain the cover.