Income Protection at a Glance
Many people don’t realise how affordable and comprehensive Income Protection can be. Full tax relief is normally available on all Income Protection premiums paid, so a €50 per month contribution could only cost you €29.50 after tax*.
Protect Uncontrollable Risk
One of the main principles of protection is to spend money on a policy that protects you from risks and events which you can do nothing about. Being unable to work due to illness can be devastating because, not only does it strip you of your current income, it removes your ability to replace that income.
Our Advice
Our advice to clients when deciding which risks to insure against, is to make sure you protect yourself from those that would leave you most vulnerable. We believe that Income Protection ranks very highly on this basis.
Anyone can become too ill to work or have an accident at any time. And if this happens, it can turn your world upside down both emotionally and financially. Being ill is stressful enough for both you and your family, so if the time comes it is important to be able to concentrate on getting better, without any financial worries.
It may surprise you to know that a staggering 85%** of the irish workforce don’t have any form of Income Protection and will be relying on their employer and the state to continue paying them if they are too ill to work. Lots of employers don’t provide any form of sick pay and for those who do, the majority will only pay you for 6 months.
Protecting your most valuable asset – your income
An Income Protection product enables you to protect what matters most in your life. It provides you with a replacement income if you are unable to work due to any accident or illness. This product protects your monthly income, making sure you continue to receive a regular income until you’re ready to return to work again or until your chosen retirement age if you are unable to go back to work.
The Facts
1 in 6 of Irelands working population will be disabled for more than 6 months.
The average claim duration is 5.5 years.
Social Welfare disability allowance is just € 10,286 per annum for an individual.
For a family with 1 adult dependant and 2 children this is just € 19,610 per annum.
There is no Social Welfare benefit for the self-employed.
Only 15% of private sector workers are entitled to sick pay for more than 6 months.
Public sector workers receive full pay for their first 6 months of absence followed by half pay for the next 6 months.
36% of those surveyed think their salary is protected by other insurance e.g. Mortgage Protection, Loan Repayment Protection and Critical Illness cover.***
* However, less than 10% of the Irish Workforce have any form of private salary protection.
*Assuming you are a higher rate tax payer. It is important to note that tax relief is not automatically granted, you must apply to and satisfy Revenue requirements. Revenue limits, terms and conditions apply.
**Source: Bank of Ireland Life Market research 2009.
***based on Lansdowne Market Research Survey, April 2006.