Income Protection

How it works

Income Protection provides you with a regular income, which is paid out if you cannot work due to an illness or injury.  You can replace up to 75% of your annual salary with an Income Protection Policy and receive Tax Relief on all of you premiums.

If you had to give up work due to illness or injury, you would still have to pay your regular bills, such as mortgage and loan repayments and household expenses.  However, you would also have the additional financial burden of extra medical costs, so your total amount of bills could increase.  With this in mind, could you maintain your current standard of living while you were out of work?

If the answer is no, you need income protection.

Your Income is your greatest asset

We don’t usually think of your current income and future earnings as an asset.  However, this is what pays for everything else – mortgage, bills, children’s education, insurances and so on.

Now think about if you no longer had this income, how would you pay for everything?

Now think about it, do you need Income Protection?

Why Protect your Income?

Do you realise that 1 in 6 of Irish workers will be out of work due to sickness or disability for more than 6 months.

Sick Pay Coverage

  • There is no obligation on your employer to provide sick pay.
  • In the private sector, 85% of employees would be fully dependant on the state benefit after 6 months of absence.
  • The public sector offers full pay for 6 months and half pay for 6 months.

Social Welfare Benefit

  • The state Disability benefit pays just a basic amount.  The amount you receive depends whether you are an individual or have a family.
  • If you are self employed then you are not entitled to any benefit.

To discuss your Income Protection options, please contact Dave at BMC Financial Planning