Income protection insurance provides you with a regular income if you’re unable to work due to illness or injury for an extended period. This cover is designed to supplement your earnings during your recovery, helping you maintain financial stability while you focus on getting better.
Available to both full-time employees and the self-employed, income protection typically requires you to work at least 16 hours per week to qualify. It’s important to note that this insurance does not cover redundancy; it is specifically intended for those unable to work due to health issues.
The amount you can insure is generally capped at 75% of your pre-illness earnings, minus any relevant social welfare benefits. The coverage kicks in after a predetermined “deferred period,” which can range from 8 to 52 weeks, and continues until you’re fit to work again or reach the policy’s benefit termination age, usually 60 or 65.
Income protection cover is crucial for ensuring financial security in the face of unexpected health challenges. Otherwise, a prolonged illness or injury can make it difficult to cover everyday expenses such as bills and mortgage payments. Additionally, the income protection tax relief on premiums at your marginal tax rate makes this insurance an affordable way to safeguard your income.
Terms, conditions and underwriting criteria may apply.
