Why do I need to protect my income?

June 17, 2013

This is a question that I get asked surprisingly frequently.  I hope to make this answer as simple and effective as possible as it is genuinely important that as many people as possible realise that if they didn’t have an income, for whatever reason, it would cause a very real financial problem.

In Ireland, there is no legal obligation on your employer to provide you with any pay when you are unable to work due to an illness or disability –  FACT.  Some employers, such as the HSE, provide some sick pay, which is great, but it is quite limited and it looks like it is set to become even more limited over the next 12 months.  What happens if your illness lasts longer than your sick pay benefit?

If you are self-employed, yes, you can do what you like and provide full pay to yourself if you want, but the reality is that if you are not working, you are not earning, hence there may be nothing there to pay yourself with.  A self-employed person, such as a G.P. or a private consultant, will not even receive the €188.00 per week State Disability Benefit.

Your income pays for everything from car insurance premiums to groceries, mortgage repayments etc.  If you don’t have an income, you need savings to pay for these things.  The lucky few with savings will find that they last for a very limited time.

Taking out an income protection plan makes great sense.  In addition to the peace of mind that it provides you and your family, it will ensure that you continue to have a regular income (up to 75% of your gross annual income) if you are unable to work due to an accident, illness, disability or injury.  As a Revenue approved policy, the premiums qualify for tax relief, which makes it significantly more affordable than most people think.

Fill in this quick form here – and we will organise your quotes for you.  Anyone who has ever claimed from their income protection plan understands their true value.