When illness or injury strikes, statistics become real lives. Income protection is often overlooked until the unexpected happens. In Ireland, income protection policies can cover up to 75% of your income if you’re unable to work due to illness or injury. But what does that really look like in practice?
Below are three real-life inspired case studies that highlight why income protection isn’t just a financial product—it’s peace of mind.
Case Study 1: Mary, the Sole Trader
Background: Mary is a 38-year-old self-employed graphic designer based in Cork. With no access to state illness benefit, she relied entirely on her ability to work.
What Happened: Mary was diagnosed with a repetitive strain injury that left her unable to use her right arm for several months.
Outcome with Income Protection: Mary had taken out an income protection policy two years earlier. After her selected 4-week deferred period, her policy started paying out 75% of her average monthly income. This allowed her to pay rent, keep her studio running, and cover living expenses during her recovery.
Key Takeaway: For the self-employed in Ireland, income protection can be the only financial lifeline in the absence of employer sick pay or state benefits.
Case Study 2: John, the PAYE Employee
Background: John is a 45-year-old IT technician working for a mid-sized company in Dublin. He earns €50,000 annually and has a mortgage and two children in school.
What Happened: John was diagnosed with a chronic illness requiring long-term treatment, forcing him to take extended leave from work.
Outcome with Income Protection: After the 8-week deferred period in his policy, he began receiving monthly payments that covered most of his salary. He was able to meet mortgage payments and maintain household stability without dipping into savings.
Key Takeaway: Even with sick leave from employers, income protection bridges the gap once it runs out—especially important for those with significant monthly commitments.
Case Study 3: Aoife, the Company Director
Background: Aoife is a 50-year-old director of a successful marketing agency in Galway. Her income is paid through her limited company.
What Happened: Aoife suffered a serious back injury while hiking and was unable to work full-time for several months.
Outcome with Executive Income Protection: Her company had set up an executive income protection policy, where the business paid the premiums as a tax-deductible expense. The policy covered 75% of her income and continued to pay her company, which in turn paid her salary.
Key Takeaway: For company directors, executive income protection not only secures personal income but also offers tax advantages for the business.
Final Thoughts
These real-life examples show how income protection in Ireland works across various professions and situations. From sole traders to company directors, this type of policy ensures that life doesn’t have to stop just because work does.
If you’re considering income protection, think about what would happen if your paycheck stopped tomorrow. Could you cover your bills? Would your lifestyle change overnight?
At ProtectYourIncome.ie, we help individuals and families find the right income protection policy tailored to their needs. Contact us today for a free, no-obligation quote—and gain the peace of mind you deserve.