Protection · Ireland
Executive Income Protection for Financial Security in Ireland
Discover how Executive Income Protection secures your most valuable asset—your income. Explore our customised solutions in Ireland.
Last reviewed by Debbie Cheevers, QFA, RPA · 30 June 2026
What is Executive Income Protection?
Executive Income Protection is a specialised insurance designed to provide financial security for the self-employed, company directors and key employees, in case of loss of income due to illness or injury.
This protection ensures that if you’re unable to work, up to 75% of your salary is covered, allowing you to maintain your standard of living without compromise. Remember, many self-employed people are unable to claim PRSI-funded Illness Benefit.
This insurance is important for anyone whose financial responsibilities require protection against the unpredictable, ensuring your bills get paid while you’re ill. Business owners & the self-employed can also pay for the premiums through their company.
Who this is for
- Self-employed professionals & sole traders
- Company directors & business owners
- Key employees a business depends on
- Anyone who can’t rely on PRSI Illness Benefit
- High earners protecting their standard of living
Why it matters
- Many self-employed can’t claim State Illness Benefit
- An illness can stop your income overnight
- Mortgages, bills & savings still need funding
- Premiums can be paid through your company
Benefits of Executive Income Protection
Executive Income Protection provides essential financial security and assurance for high-earning professionals. Here are the key benefits:
Continuous Income During Illness
When you’re unable to work due to illness or injury, executive income protection replaces a significant portion of your income. This enables you to maintain your standard of living, manage everyday expenses, and protect your savings without compromise.
It’s a fundamental protection for your mortgage or rent, and keeps your housing secure.
Tax Relief on Premiums
Your company can claim corporation tax relief on the premiums it pays on your behalf.
Salary-Style Tax Treatment
The payments you receive from your Income Protection claim are treated like salary for tax purposes. They will be subject to PAYE, PRSI and USC. This means you’ll still be contributing to the State Pension while you’re ill.
Claim More Than Once
You can claim more than once on the same policy, so long as the premiums have been maintained.
Security for Your Business
Protect your company against the loss of key members of staff due to long-term illness. Income Protection will allow you to ensure that staff members are looked after during illness, while still leaving available funds in the company to temporarily replace them.
If a staff member is ill, and making a claim, there’s a waiver of premium for this policy, further reducing the cost to your business.
How to Choose the Right Cover
Selecting the right executive income protection plan is essential to ensure you have coverage customised to your needs and financial situation.
Here’s are the comprehensive steps to help you make a choice:
How Much to Insure
What are your current essential financial obligations, like mortgages, debts, and everyday living expenses? Make sure your chosen insured amount will cover these vital outgoings.
Term
How long will you need cover for? Long terms can make your policy more expensive, but it’s very expensive to apply for a new policy when you’re older. You can usually apply for a term up to age 65.
Deferred Period
The deferred period is the amount of time you have to wait before your policy begins to pay you. You can choose from 4 weeks up to 52 weeks.
Longer deferred periods reduce the cost of your policy, but you’ll have to live off your savings until you can make a claim. Choose a deferred period that won’t affect your quality of life, if you have a long illness.
Compare Premiums & Benefits
Analyse the cost versus benefits of various policies. While it might be tempting to choose a plan with lower premiums, make sure it provides sufficient coverage.
Compare different insurers’ offerings to find the best balance between cost and the extent of protection.
Coverage Options & Extras
Familiarise yourself with the different types of policies available — every insurance company is slightly different.
Here are just a few of the features you can choose from:
- Fixed Premiums — the cover and your payment will never change
- Indexed Premiums — the cover and your payments increase, in line with the cost of living
- Escalation in Claim — the cover and your payments increase, and your income during a claim will also increase
- Hospital Cash — if you’re hospitalised, you can make a claim, even if it’s within your deferred period
- Proportionate Payment — a partial payment that helps you gradually ease back into a full-time work pattern
- Pension Payment Cover — you can still make pension contributions while you’re not working, securing your future
- Guaranteed Insurability — if you or your staff receive a raise, you can increase the cover
How It Works — From Quote to Claim
Here’s the step-by-step journey, from getting a quote to receiving your benefit if you ever need to claim.
Get a Personal Quote
You select the portion of your income you wish to insure, up to 75% of your gross salary. You can insure yourself for less than 75% of your salary, but make sure this amount will cover all your expenses, bills and ongoing savings.
Underwriting
Your financial advisor will take your age, smoker status & health information, and details of your employment. Some occupations are considered more risky than others, and your advisor will be able to provide you with a personal quote.
Your Recommendation
Your advisor will recommend a provider, and will submit your application for you, dealing with the insurance company’s queries on your behalf. Be as clear and honest as possible when submitting your application information.
Incorrect details can delay your application, and in some cases will prevent a claim being paid.
Making a Claim
If you have an illness or injury that prevents you from working, contact your financial advisor, or your insurance company directly. You’ll be given a claim form to fill out, confirming details of your employment, your current income, and your occupation.
Your insurer will also contact your doctor for details of your illness, and to confirm you meet the disability definition of being unable to perform your work due to illness or injury. Once your claim has been accepted, you’ll be paid a monthly income, once your deferred period is over.
Don’t wait too long to start your claim, as it can take time for your details to be received from your medical team.
Receiving Benefits
Once your claim is approved, you start receiving payments that replace a part of your lost income. These benefits continue until you are fit to return to work, reach the age limit specified in the policy, or the policy term ends.
Ready to Protect Your Income?
We compare the whole market across several insurers to find you comprehensive cover at the best price — and handle the application from start to finish.
- ✓ Up to 75% of your salary protected
- ✓ Whole-of-market comparison
- ✓ Regulated advice
Frequently Asked Questions
Who qualifies for Executive Income Protection in Ireland?
Typically, it is available to company directors and key employees. The policy is usually taken out and paid for by the business on behalf of the individual covered.
How much of your income can you insure?
You can insure up to 75% of your gross salary under Executive Income Protection plans. This includes salary and other benefits but excludes bonuses and commission. The actual amount you can claim is also reduced by any social welfare benefits you may receive.
Can Executive Income Protection cover temporary disabilities?
Yes, the policy covers both temporary and permanent disabilities, as long as the disability prevents the insured from performing their job duties. Benefits are paid during the incapacitation period until the insured can return to work or reaches the policy’s expiry age.
What is a deferred period and how do I choose one?
The deferred period is how long you wait after becoming unable to work before your policy starts paying you. You can choose anywhere from 4 weeks up to 52 weeks. A longer deferred period lowers your premium, but you’ll need savings to cover that gap, so pick a period that won’t affect your quality of life during a long illness.
Can my company pay the premiums?
Yes. Business owners and the self-employed can pay the premiums through their company, and your company can usually claim corporation tax relief on the premiums it pays on your behalf.
Are the benefit payments taxed?
Payments you receive from an Income Protection claim are treated like salary for tax purposes, so they’re subject to PAYE, PRSI and USC. One upside is that you’ll keep contributing towards your State Pension while you’re ill.
How long will I keep receiving payments if I claim?
Once your claim is approved and your deferred period has passed, you receive a monthly income. Payments continue until you’re fit to return to work, reach the age limit in your policy, or the policy term ends.
Can I claim more than once on the same policy?
Yes. As long as you keep your premiums up to date, you can make more than one claim on the same policy over its lifetime.
How long can I be covered for?
Cover is typically available up to age 65. Longer terms can make a policy more expensive, but applying for a brand-new policy later in life is usually far more costly, so it’s worth planning the term carefully with your advisor.
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