Income Protection for HSE Staff – Supplement Sick Leave
rd May 2020 |
The current Health Service Executive Sick Leave Scheme was introduced on 31st March 2014 and provides employees who are absent on sick leave up to a maximum of 3 months on full pay, followed by 3 months on half-pay. These provisions apply to all health service employees (both officers and support staff grades). Also under the rules of the scheme, no HSE employee can get more than 183 days or 6 months sick leave benefits in any 4 year period.
Now, with more pressure than ever on our amazing dedicated Nurses, Doctors, Physiotherapists, and all HSE staff due to Covid-19, it is hugely important for all such people to their your own financial health as well as their mental, emotional and physical well-being.
How to Supplement the HSE Sick Pay with Income Protection Insurance
Private Income Protection insurance can be used to supplement the benefits provided by the HSE, allowing you to protect up to 75% (less annual state benefit of €10,296) of your normal pay on an ongoing basis right up to retirement age.
This insurance can be set up to kick in after 6 months and pay up to 75% of your salary on an ongoing basis should a claim occur. So, if you fall sick and can’t work, in the first 3 months the HSE will provide you with full pay followed by half pay for the next 3 months and then your private insurance can take over.
How Private Income Protection Insurance Works
You pay a monthly premium to the insurance company, the cost of which will depend on your salary level and your actual occupation. Different HSE occupations are given different risk levels by the insurance company with more manual occupations considered higher risk and therefore being a little more expensive in terms of the insurance premium. Although Income Protection has 4 risk classes, most HSE occupations will fall under risk classes 1-3. Below gives a general indication of HSE occupational classes:
Risk Class 1 – HSE Occupations
Risk Class 2 – HSE Occupations
Risk Class 3 – HSE Occupations
Risk Class 4 – HSE Occupations
Getting an Income Protection Quote
Before you can get an income protection quote, you need to provide your occupation, confirm the cover term i.e. to age 60,65 or 68. Whether you want to inflation protect your benefits including during a claim.
Income Protection Tax Treatment
As Income Protection insurance is designed to replace up to 75% of your usual income, the benefit is paid in the same way as your normal salary and is taxed under PAYE as normal. The cost of providing this insurance known as the monthly premium is therefor eligible for full income tax relief.
To claim the income tax relief on the against the monthly premium you will receive a tax certificate with your policy document which you hand into payroll to allow them to adjust your tax credits, to thereby grant the after-tax relief by increasing your tax credits.
In addition to the income protection premium tax-relief, here at OneQuote.ie we grant 10% premium discount to all HSE staff income protection quotes.
Income Protection Quote Examples
Based on a 35-year-old, non-smoker, on a salary of €50,000, we have outlined below the cost of providing the maximum cover of 75% of salary to age 65, based on guaranteed premiums and including inflation protection and applying the OneQuote.ie broker discount.
Gross & Actual Net Cost After Tax Relief:
Risk Class 1: 41.44 pm – Net Cost: €24.86 pm
Risk Class 2: 51.94 pm – Net Cost: €31.16 pm
Risk Class 3: 65.57 pm – Net Cost: €39.34 pm
Risk Class 4: 81.14 pm – Net Cost: €48.68 pm
HSE Income Protection – Why choose OneQuote.ie?
- We are financial brokers who not only fully compare the best income protection plans on the market, we offer full-term discount on the best market plans and our always cheaper than going direct to an insurer.
- You can choose to automatically index your benefits and premiums.
- We offer you the opportunity to increase your original benefit by up to 20% every 3 years without requiring you to supply further medical evidence.
- A daily replacement income is paid if you are in hospital for more than seven days during your deferred period.
- Your Income Protection will continue to cover you if you change jobs, regardless of what your new job entails.
- We will immediately restart your benefit if you have a relapse within six months of returning to work – there will be no waiting period in this case.
- You will not have to pay your premiums while you are receiving an income benefit. During this time, your plan continues as normal, so that if you do return to work and at some stage in the future need to claim again your plan has continued unchanged.
- If you decide to work abroad, your cover can continue as long as you keep paying your premiums.You can get cover for working within the EU, Switzerland, USA, Canada, Australia, New Zealand and South Africa.
HSE Income Protection – What to do Next?
Ken O’Gorman – QFA
OneQuote.ie | Smart Financial Protection