Matching HSE sick pay benefits with an income protection plan.

November 9, 2012

On a typical HSE employment contract, an employee is entitled to 6 months full pay followed by 6 months half pay and then nothing, in the event of a long term illness or disability.  This is due to change to 3 months full pay followed by 3 months half pay over the next few months.  For the purpose of this article, I am assuming that the current sick pay provisions stand.

Your income protection plan should be put in place to ensure that the loss of income you experience in this event is minimised.  Assuming you earn all of your income through public work and there is no private income involved, this would usually mean taking out 2 separate income protection plans – one that will begin some payment of benefit after a 6 month period when the HSE halve your income and a second income protection plan that will pay the balance of your benefit to you after a 12 month period, when the HSE have stopped paying you altogether.  This structure ensures that instead of your income going from 100% to 50% to nil after a year of absence, that it goes from 100% to 75% and remains at 75% of your previous income thereafter, until you return to work, reach the age of 65 or die.

There are a number of other options and benefits to an income protection plan.  Some are payable benefits and some are included automatically in your plan.  The best way for you to make sure that you have a good plan and a monthly premium that you are happy to commit to is to have a quick chat with a protection specialist from Med Protect.  We can guide you through every aspect of your plan and as we provide protection to medical professional only, we are well versed with your existing sick pay benefits from the HSE.  If you have some additional private practice income, we can guide you through protecting this also.

I cannot stress enough how important it is that if you are male and looking for income protection that you start your plan before 21st December 2012 when the EU Gender Directive comes into force.  After this date, you will have to pay up to 50% extra for the exact same thing.  No one has discretion on this – neither me nor the life assurance company.  It is the law.  Make sure you don’t overpay by contacting Brian Whelan now on 01 668 6136 / 087 923 8879 or by email at brian@medprotect.ie