Income Protection Insurance, Plans| Financial Life

Do I need Income Protection?

When we consider taking any insurance, it is usually to protect something we believe to be valuable to us, for example, our home, car, item of jewelry, etc. But what about our income? After all, it pays for everything!

Some questions to help you decide if you need Income Protection:
  • How valuable is your income to you and your family?

  • How would you and your dependents cope financially if you were to suffer an accident or illness and were unable to earn an income?

  • Would social welfare entitlements be enough to cover your monthly expenses in the event you are unable to earn an income, and if so for how long?

Why Income Protection?

Income Replacement.

The premium pays you a regular taxable income up to a maximum of 75% of your earned income. This ensures you can continue to meet the financial commitments you have.

Tax efficient.

Premiums qualify for tax relief of 20% or 40% depending on your marginal tax rate. It makes premiums more affordable, but remember the claim will be taxable.

Flexible Plans.

  • Premiums and cover can be fixed. 
  • Most plans allow you to increase your cover every three years to keep up with salary increases.
  • Option to add indexation benefit to protect against inflation.

The cost of your income protection plan will depend on:

  • Your age.
  • Your occupation & salary.
  • Your overall health status.
  • Type of benefit/cover chosen.
  • Smoking Status.