Irish Mortgage Network - Income Protection

Income Protection

'60% of people will be affected by serious illness at some stage in their lives.'

Your standard of living depends on your income. If you suffer from a long-term illness or have a crippling accident you may not be able to work and this may affect your living standards. Income protection insurance provides income to support you and your family if you become disabled and cannot work. Tax relief is available on the premiums you pay on up to 10% of your total income for the year.

Could you and your family manage without an income?

How would you cope if as a result of injury or illness, you were unable to earn a living? Could you survive on the Weekly State disability benefit of just 165 euro? This is the amount you may get from the government if you suddenly became ill or got injured and couldn’t work.**

** If you are self-employed, it is important to remember that you are not entitled to the state disability benefit.

Protect your family’s income

The Income Protector Plan is designed to protect you and your family in the event of serious illness or disability, providing you with up to 75% of your regular income, less any State Benefit entitlements, until you are able to return to work.

Generous Tax Relief

An Income Protection plan is highly tax efficient, and therefore, very affordable, with full tax relief available at your marginal rate of tax on premiums of up to 10% of your total annual income.

Analysis of 1203 Irish Life Income Protection claims (male), all of whom have been out of work due to illness for a minimum of six months.

The importance of Income Protection was highlighted recently by the Consumers Association in the UK, who described it as ‘a financial priority’, especially for the self-employed.