About Zurich Income Protection
Zurich Income Protection is a type of life insurance policy that pays you money each month if you are ill or injured and can’t work, until you are fit to return to work again.
If an illness or injury stops you working, you need time to get better. But you’ll still need to be able to support yourself and your family financially.
You might get sick pay from your employer or have some savings in the bank to fall back on. However, outlays such as your mortgage, bills and weekly food shop will still need to be paid.
Benefits of Zurich Income Protection
No limit to how many times you can claim.
Get the rehabilitation you need to get better: Income Protection from Zurich is more than just a monthly income. It will give you the help you need to get better.
Zurich have access to a team of rehabilitation nurses who will go to meet you in your home and help put a plan in place to get you back to work.
Zurich Income protection can also fund the costs of treatment with a local physiotherapist or psychologist/counsellor which Zurich can arrange in conjunction with your own GP, or they may be able to pay for you to attend a specialist doctor if it will help you avoid a long waiting list and get better faster.
Proportionate payment: This benefit may provide you with a partial benefit if you return to work on reduced earnings.
If you return to work on a reduced salary whether in your current occupation or an alternative occupation you may be eligible for a proportionate benefit payment
Cover that fits around you: Zurich Income Protection is built in a way that lets you choose the cover you want today and change it when things in your life change.
It means you can increase your cover if something big happens, so if you get a pay rise or a bigger mortgage, you can increase your level of protection too (subject to certain limits).
It means you can choose the cover that’s right for you – and feel confident you’re not paying for anything you don’t need.
Start Your Zurich Income Protection
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 Zurich 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.
What is income protection?
Income Protection is an insurance policy that gives you an ongoing source of income if you become ill and can’t work, until you’re able to 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. Income Protection can give your family stability when you’re unwell.
Why is Income Protection different from other insurance?
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 full 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 with most policies you can’t make multiple claims.
Income protection however pays out on any illness, injury or disability that prevents you from working. (pre-existing conditions may be excluded). With Income protection, you can make multiple claims over the lifetime of your policy.
How does income protection work?
While you’re healthy, you pay a premium every month.
If you are unfortunate to fall ill or become injured and are unable to work during the term of your plan, you can then make a claim and receive a monthly income until you’re fit to return to work or you reach the end of the plan.
Every income protection provider has a minimum number of deferred weeks in their terms and conditions.
This means you cannot start an income protection policy and start claiming straight away. Deferred periods range from 4 – 52 weeks. The longer your deferred period the cheaper your policy will be.
You will also have the option to apply indexation to your income protection policy. This allows for your income protection policy benefit to increase each year in line with inflation. Be aware when indexation is applied to a policy it means your premium will also increase.
While you’re getting your monthly income, you don’t pay any premiums. When your illness ends and you return to work, you start paying premiums again.
How do I make a claim
When you first call to make a claim, we’ll want to find out how you are. We’ll send you a Claim Form to ask you about what’s happened and how we can help you – not just with paying out your claim, but with everything else, like rehabilitation, too.
- We may also arrange to have a nurse contact you by telephone to discuss the circumstances of your claim and identify how we can help with your recovery.
- You might prefer to speak to someone in person, so just ask and we’ll send a nurse out to visit at a time that suits you. Or we can do things via email and post if that’s easier.
- The next stage will be to obtain medical reports from your treating doctors, and we may ask you to attend a medical examination to assess your claim and to see what rehabilitation services we can offer to you.
Even when we’re paying you your monthly income, your claims specialist will still be on hand. You can talk to them about anything that’s on your mind. They’ll be there for you all the way, to support you and to help you get better, until you’re confident you don’t need them any longer.
What do i need to know about income protection
You may need income protection if you:
- Are self-employed and would have no source of income if you couldn’t work due to illness or disability.
- Have little or no sick pay from your employer.
- Have dependents who rely on your income
- Have no other source of income.
- Do not have sufficient benefits to replace your lost income to cover your expenses while ill.
Before you take out income protection, you should check if you are entitled to other benefits:
- Social welfare illness benefit: a weekly payment you may get from the State.
- If you are self-employed it is important to know illness benefit is not available to you.
- The maximum personal rate of illness benefit is €208 per week.
- Would this amount cover your expenses?
- Social welfare disability benefit: a weekly payment you may get from the State.
- It is not available if you are self-employed.
- Sick pay: your employer pays all or part of your wages for a time. This will depend on the terms of your employment which should be shown in your employment contract and staff handbook.
Income Protection Tax Relief
- You can get tax relief on your income protection premium at your marginal (highest) rate of tax, up to a yearly limit of 10% of your total income.
- This can make your premium more affordable, but remember your benefit will be taxable if you make a claim.
- If you have an individual policy, your insurance company will give you a statement showing the premiums paid.
- To claim your tax relief you need to include this information with your tax return.
- If you are a member of a group scheme, your employer usually takes your premium from your salary before tax.
- In this instance, you would not qualify for tax relief.
Zurich Income protection Deferred period
Not everyone needs their income to start as soon as they’re out of work. If your employer pays you sick pay, you might only want your money to kick in after that.
The time in between when you stop working and when we start paying you is called your deferred period. You can choose how long this is: 1, 2, 3, 6 or 12 months (4, 8, 13, 26 or 52 weeks).
The longer you wait, the lower your premiums will be.
This is suitable if you are self-employed or if you are in a job that doesn’t provide an income protection plan for you.
You will pay the premiums, but you can get tax relief at your marginal rate on the premiums you pay.
Claiming tax relief is really important as it reduces the cost to you by the rate you pay tax at – so either 20% or 40%.
For example, if you are a higher rate taxpayer, a monthly premium of €50 would effectively only cost you €30 because of tax relief at 40%.
If you need to claim, Zurich will pay your income protection benefit directly to you, after tax, USC and any other relevant deductions.
Executive Income Protection
This is designed for employers who want to provide an income protection plan for employees.
The premiums are paid for by the employer and qualify as business expenses that can be offset against corporation tax.
The employer can also elect to have pension contributions covered under this plan.
If you need to claim, Zurich will pay the income benefit to your employer, who passes it onto you as the employee through salary, making any relevant deductions such as tax and USC.
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