Income protection insurance is a valuable financial safety net, particularly in Ireland, where individuals face various risks associated with illness or injury. In addition to the standard coverage, many income protection policies in Ireland offer several additional features that can enhance the benefits of the policy. Here’s a look at some of these features:
Back to Work Benefit
Should you recover from your illness and return to work, some insurers will continue to pay you the benefit for the first 3 months and at a reduced rate. This is a great additional benefit to enjoy whilst returning to work and getting back on your feet. The Back to Work Benefit within an income protection policy can be an excellent financial support when you return to work full-time following a long-term claim.
Indexation
With no effect on your initial premium, the Indexation feature can be included on your income protection policy. This means that your annual benefit will increase by 3% every year and to keep in line with inflation. Your annual premium will increase by 3.5% which is a minimal amount and well worth the additional increased year on year benefit. Over 80% of our policy holders choose indexation to ensure that their potential benefit increases in line with inflation. MOJO Finance (regulated broker for all enquiries though www.protectyourincome.ie) recommends that the indexation feature is chosen for income protection policies.
Change of occupation
Most insurers will continue to provide cover even if you change jobs. This policy is personal to you regardless of what job you are in so if you change jobs after the policy starts you do not have to notify the insurer. Your income protection policy will continue to protect you with the same terms and conditions, regardless of your new occupation. It is important though to ensure that the existing income protection policy benefit amount does not exceed the maximum amount permissible (75% of earnings less state illness benefit for employees for example.). Otherwise, you are overpaying for the insurance.
Continuation Option
Continuation Option allows you to maintain your cover whilst you are changing from an executive policy to a personal policy or from or personal policy to an executive policy. If you change jobs, your new employer may apply the insurer to replace your Personal Income Protection policy with a new Executive Income Protection policy. By using the Continuation Option, it means that we won’t look for new evidence of health, as long as the cover and benefits are identical to or lower than those provided under the original policy. If the original policy has any ratings or exclusions, the same terms and conditions will be applied to the new Executive Income Protection policy.
Escalation in Claim.
Escalation in Claim Benefit is a useful feature where policy holders are out of work for a significant period. Here the benefit increases annually and whilst they are ill. This is a Rider benefit that you pay additional for. You can also opt to include the Escalation in Claim option on your policy. This means that your Income Protection benefit amount will increase annually if you’re unable to return to work more than one year after a claim. So, if you choose to add this to your policy and in the future, you make a claim and receive your Income Protection benefit, the amount you are paid will increase by 3% each year to help keep pace with inflation. There is an additional charge for this option that depends on factors related to your policy and is included in your guaranteed premium.
Terminal Illness Benefit
So, if you were diagnosed with a Terminal Illness, some insurers will begin immediate monthly payout, and no Deferred Period applied. If you claim due to a Terminal Illness and have been diagnosed with less than 12 months to live, your Income Protection benefit payments will start immediately.
Extra Health & Well Being Services
Some insurers provide a comprehensive and personal support to help in your recovery from illness or injury. Should you become ill, Royal London for example offer a whole host of ‘Helping Hand’ services to assist in your recovery, from physio to cardiac rehabilitation services for example.
Guaranteed Premium
Some insurers provide Guaranteed Premiums which are not reviewable through the lifetime of the policy. Other providers will review guaranteed premiums at least once every 5 years for example. All income protection policies arranged through MOJO Finance have guaranteed premiums built into the policy.
Guaranteed Increase Option
Guaranteed Increase Option is a completely free and very powerful additional feature built into the Royal London IP policy. It provides you with the option to increase your benefit by up to 20% every 3 years without the need to undergo a medical – this is very useful where you receive a promotion and salary increase for example. With the best income protection insurers The maximum total increase during your policy is 100% of your initial cover amount.
Hospital Cash Benefit
Hospital Cash Benefit is so beneficial to those who must recover in hospital over a long period, and it’s built into the policy completely free of charge. With Royal London for example, you would receive your income benefit, and this would also be supplement by a Hospital Cash Benefit to cover the cost of hospital stay for up to 83 days. So, for your amount of cover that would mean an additional quarter of your annual income benefit amount. So, if your annual income benefit amount is €30k, then you would also be eligible to receive up to €7.5k in Hospital Cash Benefit.
Pension Payments
With an Executive Income Protection policy from Royal London, you can cover up to 35% of €50k (€17.5k) in pension contribution payments made by the company. This is an important feature for shareholder directors who rely on the company they own to make employer pension contributions to fund their retirement.
Proportionate / Partial Benefit
So, if you return to work but only on a part time basis then Royal London for example will continue to pay the income benefit on a pro rate basis. So, let’s say that you return to a 2-day working week. Then Royal London will continue to pay 3/5ths of the benefit, and this also includes where you returned to a different workplace or a more suitable job.
Relapsed (Linked Benefit)
If you return to work after illness but relapse from the same illness, then payments begin again instantly – no deferred period.
Unemployment Cover
So, with inbuilt and free Unemployment Cover, Royal London will allow your policy to continue should you become unemployed. Where you get sick during unemployment, they will pay Essential Activities Benefit up to €15k annual. So, you are even covered during unemployment.
How MOJO Finance Can Help
If you’re considering an income protection plan, it’s important to get expert advice and choose a policy that suits your needs. MOJO Finance, one of Ireland’s leading experts in income protection, can help guide you through the process. With their in-depth knowledge and access to a range of income protection providers, they can tailor a plan that fits your specific situation.
MOJO Finance provide the information website www.protectyourincome.ie and is dedicated to ensuring that you receive the best coverage at the most affordable price. They understand the importance of protecting your income and your financial well-being. To make things even easier, MOJO Finance will contact you to provide a discuss your quote and your options, helping you secure the protection you need without any obligation.
In times of uncertainty, having a safety net like income protection could be the key to maintaining peace of mind. Don’t wait until it’s too late.
For more information, visit www.protectyourincome.ie to request an income protection quote today.