Questions we answer on a regular enquiry

Short Answer: Yes, but

This is why we say that the most important insurance available to anyone earning an income in Ireland is an income protection insurance policy, Income protection can be valuable if you have dependents relying on your income, as it provides a safety net for you if you can’t work due to any illness or injury that may occur.

Your Income protection premiums should be of the highest priorities on your list of monthly bills for anyone with dependents that have no other source of income as this will assist when you are at you most vulnerable.

while substantial savings might reduce the immediate need for income protection, having insurance offers added security. Income protection can offer peace of mind.

Consulting with a Qualified financial advisor will help you make the right choice for your circumstances.

Start by assessing your needs based on monthly income and your essential living expenses, such as mortgage or rent, utilities, groceries, education and other obligations.

Consult a qualified financial advisor as they will have the expertise to advise you in choosing the best possible cover for your specific requirements.

Select the coverage amount you would require insuring all your needs are met should you become unable to work due to any illness or injury.

Complete an application with your personal, employment, and health information.
When completing the information remember to always be accurate as this can affect you premium or even claim outcomes.

Make paying for your income protection one of your highest priorities as this will be your safety net when things go wrong.

The cost of income protection insurance varies based on several key factors:

Age: Premiums rise with age due to increased health risks.

Occupation: High-risk jobs result in higher premiums.

Income Level: Higher coverage amounts lead to higher premiums.

Health and Medical History: Existing conditions or past illnesses increase costs.

Lifestyle: Risky behaviours like smoking raise premiums.

Policy Details: The deferred period, benefit period, and coverage amount impact the overall cost.

A Qualified financial advisor can provide bespoke quotes based on your personal circumstances, helping you compare different policies, and find a plan that suits your needs.

Income protection and serious illness benefit are two types of insurance that offer financial support but have different features:

Income Protection Insurance: Provides replacement salary up to 75% of your gross income if you can’t work due to any illness or injury. This payment is paid to a policy holder until He/she gets back to work or until retirement age mentioned in the application.
Serious Illness Benefit (Critical Illness Insurance): Offers a Tax-free lump sum payment if you are diagnosed with a specified serious illness (e.g., cancer, heart attack). The lump sum can be used as needed and is based on a diagnosis of one of the covered conditions. Coverage and payout details are defined in your policy.

Key Differences:

Support Type: Income protection provides ongoing income replacement, while serious illness benefit offers a one-time Tax-free lump sum.
Coverage Scope: Income protection covers any illness or injury that would stop you from earning your income. whereas serious illness benefit is limited to specific serious illnesses listed in the policy. It is never a bad idea to have both.
Both can be valuable for financial protection, depending on your individual needs.

To determine if your occupation qualifies for income protection insurance, you typically need to consider the Occupation Classification that Insurers categorize occupations under on the level of risk associated with the job.

Low-risk occupations, like office-based jobs, are usually more easily insured and come with lower premiums, where High-risk jobs, like those involving manual labour or hazardous environments, might face higher premiums, reduced coverage, or specific exclusions.

For an accurate assessment of your occupation class, it’s best to consult with a qualified financial advisor to evaluate your occupation class against their criteria and help you find a policy that suits your needs.

State illness benefits provide some financial support when you’re unable to work due to illness. However, they often have limitations. State benefit offers only a basic amount up to €232.00 per week, which only ends up being €1005.33 per month this might be significantly lower than your regular salary.

State benefits are often paid for a limited period, if you’re unable to work for a longer time, you may need additional support.

Income protection insurance provides a more comprehensive safety net, replacing a significant portion of your income (usually up to 75%) for a longer period, until you can return to work or reach retirement age. This ensures you get to cover most of your bills and outgoings while you focus on recovery.

Income protection insurance is made to provide a replacement salary for up to 75% of your gross income should you be unable to work due to any illness or injury. However, there are certain events that are Not covered:

Unemployment: Income protection does not cover job loss due to redundancy or dismissal.
Pre-Existing Conditions: Medical conditions existing before the policy may not be covered or can have exclusions.
Short-Term Illness/Injury: If you recover before the policy waiting period ends, you won’t receive any payments.
Self-Inflicted Injuries: Injuries from self-harm, drug abuse, or alcohol misuse.
Pregnancy: Normal pregnancy and childbirth are generally not covered, though complications might be.
Retirement Age: Coverage typically ends between ages 60-70, with no payments for illness or injury after that.
Risky Activities: Injuries from extreme sports or dangerous hobbies may be excluded.
Criminal Activities: No coverage for injuries sustained during illegal activities.

These exclusions may vary from one insurer to another and the specific terms of the policy, so it’s essential to consult with a qualified financial advisor before purchasing income protection insurance to ensure you get the best cover for your needs.

The amount of cover you can apply for depends on your individual situation, particularly if you have a complex medical history. If you’re in good health, you can apply online with ease. The general coverage limits without requiring a medical exam are as follows:

Under 35: Up to €1,000 per week
Under 40: Up to €900 per week
Under 45: Up to €800 per week
Under 50: Up to €700 per week
Under 55: Up to €500 per week
Under 60: Up to €400 per week

If your desired coverage falls within these limits and you’re in excellent health, you can secure coverage with just an application form. However, if you have any medical concerns or need higher coverage than the limits above, you may need to complete additional paperwork, undergo screening, what we will call a nurse medical, or visit your GP.

Yes, income protection insurance is worth it, especially if you rely heavily on your gross salary to cover essential living expenses. It provides a safety net by replacing your income up to 75%, if you’re unable to work due to any illness or injury. This can offer financial stability during difficult times, helping you maintain your lifestyle and pay bills without draining your savings.

Income protection protects against loss of income due to any illness, injury, or disability that prevents you from working. It ensures you receive a portion of your salary up to 75% while you’re unable to earn, providing financial support during recovery.

Income protection insurance is absolutely essential for self-employed sole traders. If you are a self employed sole trader and become unable to work and earn income, income protection will provide you with a weekly or monthly sum to replace your loss of earning

If you have pre-existing health conditions, you may be denied coverage or be required to pay extra. Your job – some jobs are more likely to contribute to sickness or risk.

• Under 35: Up to €1,000 per week
• Under 40: Up to €900 per week
• Under 45: Up to €800 per week
• Under 50: Up to €700 per week
• Under 55: Up to €500 per week
• Under 60: Up to €400 per week

If your desired coverage falls within these limits and you’re in excellent health, you can secure coverage with just an application form. However, if you have any medical concerns or need higher coverage than the limits above, you may need to complete additional paperwork, undergo screening, what we will call a nurse medical, or visit your GP.

The payout rate for income protection is up to 75% of your regular income. This percentage is paid as a monthly benefit if you’re unable to work due to illness or injury. The exact rate depends on the policy, insurer, and your specific needs or income level. The aim is to provide enough to cover essential living expenses while maintaining an incentive to return to work.

Income protection can be worth it in Ireland, as it provides financial security if you’re unable to work due to any illness or injury. It can assist covering living expenses, bills, and other financial commitments, offering peace of mind during periods of incapacity.
In Ireland, income protection is particularly valuable because the state’s sick pay scheme is limited, and self-employed individuals or those without extensive employer benefits might find it especially useful.

Tax relief can be claimed in several different ways and can be claimed for up to 4 previous years. Some policy holders choose to claim the tax relief on income protection relief premiums every year whilst others choose to claim every 4 years.
Typically, the tax relief on your salary protection isn’t given at source so you’ll need to pay the full amount and claim the money back yourself as a tax refund in your annual return.

Income protection and life insurance serve distinct purposes. Income protection offers a regular monthly payment of your income for up to 75% ,if you’re unable to work due to any illness, injury or accident and benefits continue for the duration you’re unable to work or until retirement. In contrast, life insurance provides a lump-sum payment to your beneficiaries upon your death, with the policy either lasting for a set term or your entire life, depending on the type. Essentially, income protection helps you manage financial stability during disability, while life insurance ensures financial support for your loved ones after you’re gone.

Indexation is a factor that changes how much your insurance company pays out if you need to make a claim in the future. Put simply, indexation accounts for changes in the economy and inflation, meaning that if your cost of living goes up then your policy payment goes up with it.

Income protection typically has a waiting or “deferred” period before benefits kick in. This period is chosen when you set up your policy and usually ranges from 4, 8, 13, 26 or 52-week. The longer the waiting period, the lower the premiums tend to be. Once this period ends and you are still unable to work, the policy starts paying out the monthly benefit.

In insurance, the deferred period is also known as the waiting period it is the time you must wait after making a claim before benefits start being paid. During this period, you are responsible for covering your expenses on your own. The length of the deferred period can range from a few weeks to several months, depending on the policy. Choosing a longer deferred period usually results in lower premiums, while a shorter period means higher premiums but quicker access to benefits.

Income protection is calculated based on several factors, including your income level, which % of your income you choose , this can be to a maximum of 75% of your gross monthly income; The deferred (waiting) period and the benefit duration. These factors collectively determine the monthly benefit you would receive if you’re unable to work due to any illness or injury.

The shortest waiting period for income protection is typically 4 weeks. Choosing a shorter waiting period means you’ll receive benefits sooner after being unable to work, but it often results in higher monthly premiums.

Income protection is worth considering if you and your dependents rely on your income to cover essential expenses. If you’re self-employed or work in a field without paid sick leave or disability benefits, or if you want financial security in case of illness or injury that prevents you from working. However, if you have significant savings, strong employer benefits, or other financial support, you might find income protection less critical. Assessing your personal circumstances and financial stability will help you decide if it’s a suitable option for you.

Life insurance provides a lump-sum payment to your beneficiaries if you pass away, which helps support them financially after your death. Income protection, on the other hand, offers monthly payments if you are unable to work due to illness or injury, helping you maintain your financial stability during your incapacity.

Insuring your income helps protect your financial stability if you’re unable to work due to illness or injury. It provides a regular income, covering up to 75% of your gross monthly income, which can help cover essential living expenses and maintain your lifestyle while you recover. Without income protection, you might have to rely on savings, borrow money, or face financial stress during periods of incapacity. By insuring your income, you ensure a safety net that helps manage unexpected disruptions to your earning ability, offering peace of mind and financial security.

An Income Protection plan provides a replacement salary if you are unable to work due to any illness, accident, or injury. To ensure you can continue to pay your monthly mortgage and household costs while maintaining your present standard of living.

Income protection covers you if you’re unable to work due to any serious illness, injury, or mental health issues. It generally does not cover unemployment or voluntary job loss, and pre-existing conditions may have limitations.

Income protection insurance is designed to provide you with a replacement salary of up to 75% of your gross income, if you become ill or injured and unable to work.

Critical illness insurance provides a lump-sum payment for specific serious illnesses, helping with medical costs or lifestyle changes. Income protection offers a monthly benefit if you’re unable to work due to any illness or injury, covering up to 75% of your gross income to maintain financial stability. Critical illness insurance is ideal for major illness coverage, while income protection supports ongoing financial needs. Some people choose both for comprehensive coverage.

€5000 Annual gross income is the minimum income protection insurance can cover