Income Protection Insurance in Ireland
Income protection is insurance that pays out a regular income if you cannot work due to illness or injury.
It can provide peace of mind for you and your family, knowing that you will have some financial security if something happens. Greenway Financial can help you get policies from different companies in Ireland.
If you would like to speak to one of our expert financial advisors, please schedule a 1:1 call.
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Income Protection Policies Offered by Greenway Financial
It is a type of insurance that provides a regular income stream if you can no longer work due to illness or injury. It can be an essential safeguard for your financial security and is a vital consideration if you have dependents who rely on your income.
At Greenway Financial, we offer a wide range of policies that can be tailored to suit your individual needs and circumstances. We understand that everyone’s situation is different, and we will work with you to find the most appropriate policy for your individual requirements.
If you would like to find out more, or if you would like to get a quote for a policy, please contact us today.
What is Income Protection?
It is an insurance policy that gives you an ongoing source of income if you become ill and can’t work until you can return to your job.
You could need time off your job to recover from your illness or injury, but without your income, you may only have sick pay, illness benefit, or savings to rely upon.
Your mortgage, bills and weekly food shop will still need to be paid. This type of insurance can give your family stability when you’re unwell.
Why Is Income Protection Insurance Different From Others?
When you have a mortgage, you need mortgage protection, which clears your loan if you die but doesn’t pay anything if you’re ill & can’t make your mortgage payments.
You can get Life Insurance, which pays your family a lump sum if you die but again doesn’t pay anything if you become ill.
You may also have a Serious Illness policy. This will pay a partial or complete lump sum if you suffer an illness or injury covered by the policy.
The illnesses & injuries covered by these policies are usually quite severe, and the definitions are strict. You’ll only be paid once, and you can’t make multiple claims with most policies.
How Does Income Protection Work?
You insure up to 75% of your yearly income. While working, you pay a monthly premium, but you can choose yearly if you wish.
If you become ill and have to make a claim, you receive a monthly income, and you don’t need to pay premiums during this time.
When you recover & return to work, you start paying premiums again.
How Much is Income Protection Insurance?
The insurance company asks for your age, smoking habits and health status. They will also ask for details of your occupation because some occupations are more high risk than others.
You provide details of your salary and choose a Deferred Period. The Deferred Period is the amount of time before your claim will begin to pay you.
You can choose between 4 weeks and 52 weeks; a longer deferred period can mean a lower premium. Longer deferred periods can be suitable for people who get an amount of paid sick leave from their employer.
You can also get tax relief on your policy at your marginal (highest) tax rate, up to a yearly limit of 10% of your total income. This can make your premium more affordable, but it’s important to remember that your benefits will be taxable if you make a claim.
How Long Does an Income Protection Policy Last?
You can choose the term of your policy. As the policy protects your salary, many people prefer 65 or 66 as the end date for their policy. This is roughly the age they’d retire at and will soon be eligible for their state and private pensions.
Who Should Get It?
Anyone who wants to protect their everyday life if they get ill. The last thing you need to worry about if you’re ill is the possibility of losing your home or going into debt to meet your costs. It’s essential for people who rent or have mortgage repayments.
Start Your Income Protection Policy
Contact us to start
Our qualified financial advisors will talk to you about your current financial situation and your future financial plans.
We’ll provide you with a number of income protection options from different providers.
Your Income Protection Is Setup
Once we’ve answered all your questions and you’ve chosen your income protection product, we’ll start the process of opening your income protection policy.
You may be asked to complete a medical screening before your policy can be put in place.
Your Greenway qualified financial advisor is here to help you every step of the way.
Your Income Protection Is Running
If you need to make a claim, we are here to help guide you through the process.
We’re here to answer your questions and provide advice. Your financial advisor will contact you once a year to see how you are and if you have any questions.
Book a Free 1:1 Initial Consultation
Let’s get on a call to discuss your personal and business finances with our experienced financial planners!
Benefits of Getting Income Protection Policy
Insurers offer unique benefits, with some offering free additional medical support services, tapered benefits to help you ease back into work, and even the option to maintain your policy at lower rates if you become unemployed.
Mortgage Protection protects your home, and Life Insurance protects your family if you die. Still, it is the only policy that can protect your quality of life if you cannot work through illness.
Income Protection Policy Examples
Aine is 35, a non-smoker, and earns €48,000 per year.
Her employer’s sick pay scheme will pay for three months of salary if she becomes ill, but afterwards, she’ll only be able to rely on an Illness Benefit claim for €208 per week.
Her current wage is €743 net per week, and her family will be badly affected by losing over €2,000 per month.
Aine applies for a income protection policy to cover her until she’s 66. She insures 75% of her yearly income, or €36,000 per year, with a Deferred Period of 13 weeks.
Aine’s premium is €108 per month or €1,296 per year.
She can claim tax relief at her marginal rate of 40%, which means that the net cost of her monthly premium is €65.
She has to claim this back directly from Revenue each year.
John is 40, smoker, and earns €66,000 per year.
His employer’s sick pay scheme will pay for 70% of salary for 10 days if he becomes ill. Afterwards, he’ll only be able to rely on an Illness Benefit claim for €208 per week.
His current wage is €874 net per week, less illness benefit of €208 per week this leaves John with a shortfall of €666 per week.
John applies for an income protection policy to cover him until he is 66. He insures 60% of her yearly income, or €39,600 per year, with a Deferred Period of 4 weeks.
Johns premium is €297 per month or €3,564 per year.
He can claim tax relief at her marginal rate of 40%, which means that the net cost of her monthly premium is €178.
He has to claim this back directly from Revenue each year.
Get in Touch for Income Protection Insurance
Income protection insurance can provide a safety net for you and your family if something unexpected happens that leads to a loss of income. If you are the primary breadwinner in your household, it can help ensure that your family is taken care of financially if you cannot work.
Let Greenway Financial help you find the right income protection insurance policy for your needs so that you can have peace of mind knowing that you and your family are protected.
About Greenway Income Protection
At Greenway, we bring together our knowledge, experience and efficiency to our customers. We’ll help you find the right path or products, and even better, you’ll know why, and how to use it.
Our financial advice is tailored to each individual needs and situation. Our goal is to help our customers reach financial independence and better their lifestyles.
Most importantly, your policy or plan should fit your life, and your financial advisor should fit into your lifestyle.
We build long term relationships with our customers. As your life circumstances change we will be there to advise you about changing and adjusting your policies.
Greenway Financial Advisors Limited is regulated by the Central Bank of Ireland. Registered No. C168372