Income Protection from Irish Life

What is Income Protection?

Income Protection provides you with replacement income, which is paid out, if you are unable to work due to an unexpected illness or injury. It gives you financial support, so you’ll have time to focus on getting back on your feet. And with the great tax relief on Income Protection payments, now is a great time to think about protecting your income.

Employers aren’t obliged to pay for extended sick leave and the government illness benefit is minimal, €204.30* a week or €339.90 with an adult dependant. (Please see www.welfare.ie for more information) So, unless you had a large nest egg set aside, you could struggle to cope financially.

Income Protection does not cover you if you become unemployed.

4 great reasons to start an Income Protection plan today!

1. It pays you a regular monthly income if you cannot work due to an unexpected accident or illness. This replaces some of your regular income, helping you pay bills, the mortgage and day-to-day expenses.
2. It gives you real peace of mind by providing cover until the plan ends, no matter how many claims you make, or how long you're out of work due to accident or illness.
3. Payments on your Income Protection Plan are eligible for tax relief at your marginal rate of tax. So, it costs you less and offers great value for money! You can find out more about tax relief at the Department of Social and Family Affairs or The Financial Regulator's "It's your money" website.
4. Income Protection now offers more benefits and features then ever before. For example, we have a reviewable option and a new guaranteed option. With the guaranteed option your payment stays the same unless your needs change however this option is more expensive than the reviewable option.

How much Income Protection cover will I need?

One of our experienced Financial Advisors will help you decide on the level of cover that you need and can afford.
The cover you start with should reflect your existing income. There are maximum limits to the level of Income Protection cover you can start with.

In general, the most cover you can have at any one time (including that provided under other income protection plans and continuing income from your job or pension is:

• 75% of the first €80,000 of your yearly earning;
• plus 50% of any yearly earnings over €80,000;
• less any state benefits for disability (except benefits for children and other forms of income you may have).

The overall maximum amount of cover we will provide is €150,000 a year. The overall maximum amount of payments you can claim tax relief on is limited to 10% of your total income for the year of tax assessment. Your “total income” is any “earned income”, as adjusted for tax purposes. Benefits payable are subject to tax under PAYE. Terms and conditions apply.

How much will Income Protection cost me?

The example above is for a 35 year old non-smoking male (occupation class 1 = managerial or administrative occupations, with only a small element of driving (< 150 business km per week) )intending to retire at age 60. It's based on a 13 week deferred period during which the incapacity benefit is not paid and is for our reviewable Income Protection plan. The example does not include the cost of the1% government levy.

* This is a personal rate for a single person with no dependants.

Take a look at our Income Protection product booklet and Income Protection flyer to find out more.

• Income Protection Booklet (pdf1.92Mb)
• Income Protection Flyer (pdf 451kb)