Income Protection in Ireland: What You Need to Know
If you’ve ever wondered what income protection Ireland (IP) insurance is, or if you’re unsure whether or not your employer offers one, then this article is for you. In this guide we’ll cover everything from the basics of this important financial tool to how much coverage you need and which type of policy works best for each situation.
What is income protection insurance?
Income protection insurance is a form of insurance that provides cover for income in the event of you becoming unable to work. It can help you meet your living costs while you’re receiving treatment or recovering from an injury.
- What does it cover?
Income protection covers the cost of essentials such as food, fuel and utilities if you become unable to work through no fault of your own (except sickness). It also pays out benefits based on your salary history, so if someone has been sacked without just cause they may be eligible for more money than someone who’s been there longer but hasn’t had their job ended yet. And even if someone loses out on a bonus because their employer’s board decided not to award it at all because they thought it wasn’t fair enough – well, hey ho! You’ll still get paid regardless!
Who needs income protection?
Anyone who has family to support, or will one day have a family of their own, should consider income protection. For example:
- Self-employed individuals may be self-employed because they want to earn more money, but they also need some kind of financial cushion in case they get sick or injured and can’t work. Income protection could help them pay their bills while they’re out of commission by covering any gaps in income.
- People employed in high risk industries such as construction are at greater risk for injury or illness than other people. If you’re working in an industry like this then it’s important that your employer provides workers’ compensation insurance coverage so that if you become injured during your shift it’ll cover some of your medical expenses. This will protect both your job security and future earnings potential because now when an injury happens there won’t be any gap between when it happened (and thus how much money was lost) versus when benefits start coming through from workers’ comp claims settlements made on behalf of those injured employees whose injuries resulted from working conditions deemed unsafe by authorities responsible for enforcing workplace safety regulations
How much do you need to insure?
How much do you need to insure?
If you’re young and healthy, the answer may be “not very much”. You can probably get by without life insurance if your income is high enough. If not, then it’s worth considering whether a policy makes sense for you financially.
However, if you have children or other dependents in your household (such as grandparents), then it might be time for them too. And what about if there’s some risk of disability? You should also consider how long any potential payout will last after retirement age—in Ireland our retirement age is 65 and we currently live an average life expectancy of around 80 years old.
What type of income protection works best for you?
There are two types of income protection: fixed period and flexible. Fixed period income protection is best for people who know they will be off work for a set period of time, for example if you’re on maternity leave or sick leave.
Flexible Income Protection is designed to meet the needs of those who want to keep their jobs but want some flexibility in how they can manage their finances while out at work.
Does your employer offer an income protection scheme?
If you are self-employed and have no other form of income protection, you will have to buy it yourself. You can usually get this insurance through a broker who will process the application and then send out an annual renewal notice.
If your employer offers an income protection scheme, it’s worth finding out if they will let you take part in their scheme if you become unemployed. This may be because there is a limit on how much money any one person can contribute towards the total cost of running their company (and not all employers do). For example: if there was only €2 million available for everyone who worked at my company but I had already paid into my personal pension plan for 20 years before joining them – I would still qualify as long as those contributions were made before our start date together!
Income protection insurance gives you the financial cushion you need in the event that illness or disability means you can’t work
Income protection insurance is a type of health insurance that provides income in the event of illness or disability. It can be added to your existing health policy, or you may be able to buy it separately.
It’s important to note that income protection does not cover everything: if you’re diagnosed with a serious illness and need surgery, treatment for cancer, or something else expensive—such as rehabilitation after an accident—it won’t help with those bills either. But if you’re diagnosed with something less serious like back pain or anxiety (and let’s face it: no one wants a diagnosis like “back pain”), then this could mean an end to your ability to work full-time again temporarily until things get better. Income protection can provide some financial cushion during this time period so long as there aren’t any other medical expenses involved!
How much do I need? The amount depends on what kind of policy option(s) are available through your employer or insurer (this will vary depending on where they live). You may have different options available depending on whether they offer term plans vs permanent policies; these terms refer specifically how long coverage lasts before renewal needs occur each year after purchase date/first month premium payment etc..
It’s important to keep in mind that income protection insurance Ireland is not a replacement for a regular savings plan. You should still save for the future and have other sources of income when you are unable to work or need time off work due to illness or disability. However, having this type of protection can help you manage any unexpected expenses over time which may otherwise be unaffordable without it