What is Income Protection?

Income Protection is insurance cover that provides you with a replacement income if you are unable to work on a medium to long-term basis due to illness or injury. It can pay out after a pre-determined time period as chosen at outset which can be either 4, 8, 13, 26 or 52 weeks - the longer the deferred period the lower the cost.

The amount of income you can protect?

You can cover up to 75% of your earnings, less any State Illness Benefit entitlement, up to a maximum of €250,000 per annum.

Premiums are fixed

Your premium, unless you choose Indexation, is guaranteed to stay the same throughout your policy, as long as your chosen benefits remain the same. However, the Government levy of 1% (as at November 2014) which is included in your premium may change in the future.

Tax Relief available

You can claim tax relief on all premiums you pay at your marginal rate of tax. This means that if you are taxed at the higher rate, currently 40%, on a €100 premium you will get €40 tax relief –so the net cost to you is only €60.