Income protection insurance

For most of us, our income is our most important asset.   It affects how we live and how we pay for everything from food, light and heating to our mortgage repayments, income-protection-insurancechildren’s education and family holidays.

Being rendered unable to work for months or even years because of an accident or an illness is not something many of us want to contemplate.

Most people tend to assume that their employer or the State will ‘look after them’ if they are unable to work for a prolonged period. This may well be true if you are a public sector worker, but it is estimated that only around 15% of private sector workers are entitled to sick pay for more than six months.  There is no legal obligation on employers to pay sick pay in Ireland.

You are particularly vulnerable if you are self-employed as you will not get any employer sick pay and you will not be entitled to the State illness benefit.

If you are a private sector worker and are not covered for sick pay from your employer, you would be entitled to €188 per week illness benefit which is only payable for up to two years for those that applied after January 2009.

Why should you consider Income protection?

  • An income protection policy will provide you with a monthly income if you are unable to work due to an illness or an accident until such time as you return to work or until you retire.
  • The benefit is payable 75% per cent of your current salary or earnings, and in most cases will keep paying out until you get better.
  • You can claim full tax relief on your contributions, so a premium of €50 per month would cost €29.50 after tax at 41%.
  • Your premium will depend on your age, gender, what kind of job you have, your medical history and the amount of your benefit. The cost will also be determined by the ‘deferred period’ that you choose, which is the initial period of inability to work before the benefit becomes payable. The period varies, but is typically 4, 8, 13, 26 or 52 weeks. If you choose 4 weeks, your policy will be more expensive than if you chose 26 or 52 weeks.

 

Contact Foskin Financial

 

 

Contact Foskin Financial today!

for a quote for Income Protection
on 051-885358 or email foskinp@eircom.net