Help protect what matters most with Income Protection
What is Income Protection?
Income Protection is something that is designed to be there for you when you need it, giving you peace of mind that the important things in life stay on track.
What do you get from Income Protection?
Income Protection gives you a replacement income of up to 75%* of your annual salary – if you can't work due to illness or injury, and your sick pay has reduced to half pay or ceased altogether.
How Income Protection works
The best way to understand Income Protection is by looking at the example below, which assumes that only standard sick leave applies.
John has been working in the Public Sector for 20 years and earns €50,000 per year. Sadly, John fell seriously ill and hasn’t been able to work for two years. Before John was sick, he received €962 salary per week, but after 26 weeks (183 days) he has to survive on €357 per week.
After two years, John is entitled to Ill Health Early Retirement Pension and possibly State Invalidity Pension† - leaving him with an income equivalent to 38% of his salary.
If John had taken out Income Protection, he could be in receipt of 75%* of his annual salary.
The graphs below show the full effect of illness on John’s income if no Income Protection Plan was in place; compared to if John had an Income Protection Plan in place:
Can you afford it?
The great thing about the majority of Income Protection plans is that they are a percentage of salary. That means that the premium is directly linked to what you earn! The premium can either be paid via salary and appear on your payslip or by direct debit.
Every three to five years, your plan goes through an extensive review to make sure you get - the most competitive rate and benefits on offer.
What’s more, you can claim income tax relief on the Disability Benefit element of your plan premiums. On your payslip the gross amount will appear, however the net cost to you will be less!
Income Protection is one of the first steps in creating your financial back up plan. If you haven’t already joined a plan, our best advice would be to contact us to get a plan in place now.