Income Protection
Income protection ensures you against the inability to work due to illness/injury/disability, NOT redundancy or lack of work. Maybe you could struggle through & make ends meet financially for 12 months at a push, but could you manage 4 years being out of work and not earning any income in that time.
Important information to know.
You pick the limit or time-frame.
You might be asking is there a limit or time-frame on how long your income will be covered when you are unable to work & does its scale back as the years go by. You can cover your income for 10, 20, 27, 32 (however many years you like) up to a maximum age of 70. So for example, if you buy an income protection policy to age 68, your policy will pay you a replacement income until you hit 68. The income you receive doesn’t scale back. If you insure yourself for €4000 per month, you’ll receive a taxable income of €4,000 per month until your policy ends. You also have the option to add “claim escalation” to your policy which means your payout increases by 3% every year you are out on your claim.
Can I get tax relief on my income protection premium payments.
You can get tax - relief on your income protection payments.
Tax relief cannot be claimed at the source, it comes back as part of your tax return, you claim each year.
You do not get tax - relief on Serious Illness Cover
Who pays the bills if you have no income?
Mortgage, Utility Bills, Food, Children's Education, Loans, Car Costs, Holidays, Other Insurance bills.
Income Protection pays you up to 75% of your income as per terms of your policy so you can still pay your bills and live your life with out the worry of how you & your family are going to cope.
Waiting Periods for Income Protection
You can have a 4, 8, 13, 26 or 52 week waiting period if you are paying your premiums personally
If your company or employer is paying the premiums, you can have a 1, 2, 3, 6 or 12 month deferred period.
Remember, the shorter the waiting period, the higher your quote will be.
The waiting period is also called, the deferred period or the excess period
Unable to work.
Before your income protection policy starts to pay out, you have to be unable to work for a certain period of time known as the deferred period.
The longest waiting period for income protection is 52 weeks.
Currently the shortest waiting period for income protection is 4 weeks.
Self Employed & Income Protection.
What will you do if you can't work?
The bills keep coming in but your not working because you hurt yourself at work & can't continue doing your job until you recover from your injury.
You're stressed out & your family life suffers from the stress of bills & not having your income to do what you like to do.
You go back to work before you should causing long term damage because you can't afford to take anymore time of work because the bills are stacking up.
You get stressed out some days thinking if I got injured & couldn't work, what the hell would you do.
Reasons you should consider Income Protection
You’re the money-making machine. If you break down, the money stops.
You can get tax relief on paying income protection. You cannot claim it at the source, but it can be included in your tax return each year.
Have piece of mind each day at work, knowing if you were to be unable to work for what ever reason you could have a regular income coming in to pay the bills. Up to 75% of your income depending on your policy.
N.B Income protection ensures you against the inability to work due to illness/injury/disability, not redundancy or lack of work
We understand that there is a lot of information you need to consider & we believe in knowledge is power when it comes to choosing the right policy for you & your family.
If you feel you have more questions you need answering, why not check out our Income Protection FAQ'S or contact us today.
If you feel you have more questions you need answering, why not check out our Income Protection FAQ'S or contact us today.
