Income Protection

Income Protection is designed to help replace your income due to any illness, accident, or injury preventing you from being able to work, for a prolonged period. Our on-line quote calculators provide the cheapest instant market comparison quotes in Ireland.

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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 Insurance

We Make it Simple

At OneQuote.ie, we make arranging your Income Protection Insurance simple and more affordable.

We instantly compare policies from all of Ireland’s leading income protection providers including; Friends First, Irish Life, New Ireland, Aviva and Royal London and then apply discount, to guarantee you the best coverage and lowest priced income protection policy available.

Our unique quotation system, will automatically calculate your maximum cover level, based on your occupation and annual salary and you can choose between fixed, or reviewable premiums.

 

Income Protection – Features, Facts and 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 hospital for more than seven days during your deferred period;
  • If can maintain cover even if you move job, anywhere within the EU;
  • Cover can be increased every 3 years, by up to 20% of your original cover level, without further medical medical information.

Income Protection Facts & Figures

  • One in three people in Ireland will develop cancer during their lifetime (Irish Cancer Society, 2013).
  • An estimated 30,000 people are living in the community with disabilities as a result of a stroke (Irish Heart Foundation, 2013).
  • Friends First, Ireland’s largest inocme protection provider, paid out over €36 million in Income Protection claims in 2016.

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 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 are 2 further options known as: Wage Protector and Mortgage Income Protection, these are outlined in more detail further on.

Additional 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.

Your Occupation 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 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 cover 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 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: 1890 727 111.

 

Income Protection – Mortgage Protector to protect your mortgage repayments

Mortgage 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 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 Protection, enquire here, or call us on: 1890 727 111.

 

Income Protection – Frequently Asked Questions

Who is eligible for Income Protection?

You must be in full-time paid work as a self-employed person, or as an employee or company director to qualify for Income Protection and to receive benefits in the event of a claim.

What income counts?

Income must be earned income so you cannot include rental income or dividends for example. It is important to get this information right during your application for Income protection, as you might be paying for more protection than you are entitled to at claims stage.

How much income is protected?

The maximum that you can cover yourself for is 75% of your income less any social welfare entitlements (currently €9,776 per annum). Note that State Illness Benefit is not paid to self-employed people, including owner directors. There are also some income limits amongst different market providers, but only if your income is above €125,000 does this come into play.

Guaranteed versus reviewable premiums?

Our quote system allows two rate options: (1) Guaranteed rates (2) Reviewable rates. The Guaranteed rates option will ensure that your premium will not change during the term of the plan (unless inflation protection is chosen). Reviewable rate policies will start at cheaper, but will be reviewed on the fifth anniversary and every five years thereafter, meaning increases may or may not occur.

How much income can I protect?

The maximum that you can cover yourself for is 75% of your income less any social welfare entitlements (currently €9,776 per annum). Note that State Illness Benefit is not paid to self-employed people. There are some limits which vary slightly across life companies; but Friends First (our Income protection provider) cover 75% of the first €125,000 of salary plus 33% of the balance of your income, less social welfare entitlement. This is subject to an overall maximum of €175,000.

What are the relevant deferred periods?

The deferred periods are 4, 8, 13, 26 and 52 weeks. The deferred period is the time between when you are injured or fall ill and when the policy will commence payment. The longer the deferred period, the lower the premium. Think about how long your savings, or if applicable your employer provider sick pay would cover for expenses when deciding on the deferred period to choose.

How does the tax relief work?

Yes – The premiums you pay on your income protection policies attract tax relief at your marginal rate. Let’s say you earn €60,000 per annum and your marginal tax rate is 40%. Your quote comes out at €100 per month (gross) but the policy actually only costs you €60 per month (net).

Where does occupation come into it?

When getting an income protection quote, your occupation is very important as some occupations will not be covered due to the nature of their work. Below is a table that will give you a good idea of what class your occupation falls into but it is not the definitive guide as there are some small differences between the various life companies.

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: Quantity Surveyor, Dentist, Sales Rep etc.

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

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

How many times can you make a claim?

You can submit claims on your Income protection policy as many times as you require benefits, right up to the end of the policy term.

What happens if my salary increases?

Some companies, such as Friends First and Royal London, have an automatic benefit on their policies which allows you to increase the cover on your policy by a certain amount (20% of the original cover every three years) without having to provide evidence of health. This is optional. The premium will be revised accordingly at the time. This option may be exercised up to five times. If the increase is declined more than once when offered, it will not be offered again.

You can also select Inflation Protection when running your quote. This means that your benefit will increase by 3% each year and your premiums by 3.5% in conjunction. This can help ensure that your benefit automatically stays in line with any salary increases and with inflation and that if a claim occurs your benefit pay-out will also increase by 3% per annum.

How do I ensure best value for money?

We compare all leading income protection insurance providers in Ireland, to ensure the best cover, while we also offer both guaranteed and reviewable premiums options, together with a One Quote discount on the cheapest market price.

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