Income Protection – Policy Features
Features of Income Protection
- Pays up to 75% of your usual income, allowing you to continue to take care of your loved ones;
- Has a guaranteed level premium option which means the cost will never go up, even if you make a claim;
- Premiums qualify for full Tax Relief of up to 40% on Personal and 12.5% on Executive, company paid policies;
- Pays a daily replacement income, if you are in a hospital for more than seven days during your deferred period;
- If can maintain cover even if you move job, anywhere within the EU; granting even more peace of mind;
- The cover can be increased every 3 years, by up to 20% of your original cover level, without further medical information.
- Other benefits include rehabilitation assistance, relapse benefit, home visits with independent qualified nurses or professionals, back-to-work support, and career change guidance.
Income Protection – Quote Options
This is the waiting period prior to which claim payment commences. It can be between 8 and 52 weeks, with most people choosing 26 weeks, so as to rely on savings in the interim.
Policy Ceasing Age
This is normally your expected retirement age up to a maximum of age 70. If a claim occurs and you have not recovered the policy benefit pay-out will continue to this age. Most people choose age 65.
Guaranteed or Reviewable Premiums
Your premium, unless you choose Indexation, is guaranteed to stay the same throughout your policy, as long as your chosen benefits remain the same. However to get an even lower premium you can choose reviewable premiums which are on offer from only 2 of the 5 income protection providers namely Irish Life & Aviva. Reviewable means that the provider reserves the right to review the premium charged.
Premium and Benefit Indexation
This option increases your cover by 3% each year in return for a 3.5% increase in your premiums each year. If you are claiming your Income Protection benefit for more than one year, the benefit will increase by 3% each year that your claim continues, to help keep pace with inflation.
Income Protection – Occupational Risk
Your occupation is very important as not all occupations are covered; particularly occupations that have a degree of occupational risk, e.g. working with hazardous materials, at certain heights, or working in confined spaces.
Below is a basic guide, that will give you a good idea of what class your occupation falls into. If your occupation does not feature on our website, please contact us so we can confirm if you are eligible to apply for Income Protection.
White-collar occupations: no appreciable accident or health risk. These occupations will usually be office-based. Examples include Accountants, GPs, IT Consultants, Solicitors, Administrators, etc.
Mainly white-collar and predominantly administrative. Driving may be involved. Examples include Childcare workers, Dentists, Sales Reps, etc.
Skilled occupations, which may involve light manual duties but any heavy lifting is rare. Examples include Interior Decorators, Foremen, Electrical Engineers, Nurses, etc.
Skilled tradespersons, working on construction sites using light power tools. Examples include Carpenters and Plumbers.