The simple answer is YES, benefit money paid from an income protection plan in Ireland, is subject to taxation under revenue rules.
In fairness, a tax relief on premium is available to you at your marginal rate, while you pay your regular premium. This means if you are taxed at the higher rate (40% currently), on a €100 monthly premium you will get €40 tax relief– so the net cost to you is only €60.
Although you receive tax relief on your premium payments, while you claim benefits in a claim period, the payout is taxed in the same manner as income.
However, you may pay less taxes during a claim, simply because your income will be less than the regular monthly salary.
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Repays mortgage if the insured dies or suffers a terminal illness.Learn More Get Quote
Ensures the financial stability of the family if the insured dies.Learn More Get Quote
The insurance plan gives coverage against specific diseases.Learn More Get Quote
Ensures a regular income for the insured who is unable to work.Learn More Get Quote