Income Protection

Compare income protection to find the best cover for you.There are different types of income protection policies to choose from, depending on your employment type, occupation, cover needs and budget. Below we help you to identify your most suited policy, as well as to explore income protection features, facts and figures.

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Income Protection top-tips
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Income Protection top-tips

  1. Claim payments only start after a waiting period. For best value, opt for a 13-week deferred period and ensure that you have sufficient savings to cover the waiting (deferred) period.
  2. If self-employed or an owner-director, you will not get state benefits if you fall ill and can’t work.
  3. Remember the premium payments are eligible for full income tax relief, so consider covering your pension contributions, as well as your salary.

Compare Income Protection

Consider Your Needs

Choose between guaranteed and reviewable premiums.

Guaranteed premiums are fixed and never subject to review, whereas reviewable premiums are cheaper but may be subject to increase by the insurer once every 5 years. If your job involves a lot of manual work you may want to consider a version of income protection called “wage protector” described further on if you want to only protect mortgage repayments as opposed to maximum salary-related benefits that option also exists.
 

Income Protection – Features, Facts & Figures

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 Tax Relief;
  • 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;
  • The cover can be increased every 3 years, by up to 20% of your original cover level, without further medical information.

Income Protection Insurance – The Facts & Figures

  • One in three people in Ireland will develop cancer during their lifetime (Irish Cancer Society, 2018).
  • An estimated 30,000 people are living in the community with disabilities as a result of a stroke (Irish Heart Foundation, 2016).
  • Aviva’s, Ireland’s largest income protection provider, paid out over €42 million in Income Protection claims in 2018.

With medical advances, people are more likely to survive serious illnesses but, this means that more people are likely to take prolonged periods off work for treatment and recovery. This could have a huge impact on their ability to earn. Could you continue to pay these bills if, you lost your regular income? If the answer is no, you need income protection insurance.

Different Types of Income Protection 

Two main kinds of income protection exist – Personal Income Protection and Executive Income Protection, the only real differences are that with Executive Income Protection, the company rather than the individual pays the premium and receives the benefits to pass on to the insured employee.

Also, under the Personal Income Protection category, there are 2 further options known as Wage Protector and Mortgage Income Protection, these are outlined in more detail further on.
 
Automatic Policy Benefits
Other benefits include rehabilitation assistance, relapse benefit, partial benefit, home-visits with independent qualified nurses or professionals, return to work support, and career change guidance.

Cover Level
You can cover yourself for a maximum of 75% of your normal basis annual income, less the state disability benefit where applicable.

Deferred Period
This is the waiting period prior to which claim payment commences. It can be between 8 and 52 weeks, with most people choosing 13 weeks.

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.

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.

Class 1
White-collar occupations: no appreciable accident or health risk. These occupations will usually be office-based. Examples include Accountants, GP’s, IT Consultant, Solicitors, Administrators, etc.

Class 2
Mainly white – collar and predominantly administrative. Driving may be involved. Examples include: Childcare Worker, Dentist, Sales Rep etc.

Class 3
Skilled occupations, which may involve light manual duties but any heavy lifting is rare. Examples include Interior Decorators, Foremen, Electrical Engineers, and Nurses, etc.

Class 4
Skilled tradespersons, working on construction sites using light power tools. Examples include Carpenters and Plumbers.

 

Income Protection – Wage Protector for higher risk occupations

Wage Protector

When it comes to occupations that involve manual work, the risk of making an income protection claim is higher, so as a result, the premiums are higher. So, if you are a tradesperson, or your job involves manual duties, a cheaper version of income protection exists known as Wage Protector.

With wage protector, your coverage kicks in after your chosen deferred period and pays you a replacement income for up to 2 years, if you are unable to do your own job. This gives you an opportunity to get back on your feet or prepare for an alternative job.

After this initial period, depending on your circumstances, full long-term payment may apply, if you are unable to return to any work due, to your significant illness, or injury and continue to suffer a loss of earnings as a result. Once 2 years of payments have elapsed, you must pass a Functional Assessment Test to qualify for this cover. This is a straightforward set of physical and mental ability tests.

If you need more information on wage protector, enquire here, or call us on 01 845 0049.

 

Income Protection – Mortgage Protector to protect your mortgage repayments

Mortgage Repayments Protector

Mortgage Protector is a form of income protection, designed to specifically cover your regular mortgage loan repayments if you were out of work due to an illness, or disability. It differs from regular income protection, in that the cover amount relates to your mortgage loan repayments, rather than your regular income and it is set up for the term of your mortgage, rather than to your normal retirement age.

If you need more information on Mortgage Repayments Protector, enquire here, or call us on: 01 845 0049.
 

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