Income protection is a way of making sure you and your family have financial security should you need it.
When life is going well, it’s easy to take money for granted. It pays the bills and lets you take care of your family, enjoy your home, car, hobbies and holidays. Your income is essential to your quality of life.
What if you had an accident or long-term illness that prevents you from earning a living? That’s when income protection becomes invaluable. It gives you an alternative income while you’re unable to work.
Questions to be considered:
1. How would you repay your mortgage?
2. What financial plan have you got in place if you got sick and couldn’t work?
3. How long will your employer pay your salary if you’re unable to work due to illness or injury?
4. If you qualified for the State Illness Benefit due to ill health and not being able to work, could you financially survive on €208 per week?
5. During this period of sick pay, what percentage of your salary will be paid?
6. Have you thought about how you would cover your living expenses if you had to take an extended period of unpaid sick leave?
Income Protection pays you a regular income if you can’t work because of an injury or illness while you are employed. Its aim is to replace some of your earned income once any state benefits are taken into account, so you could still maintain the lifestyle you are used to. If you are in full-time employment or if you are self-employed and earn an income, you can take out an income protection plan.
Any type of illness or injury which prevents you from working is covered.
Monthly payments are made until you can go back to work, retire or your policy ceases.
You choose the level of cover you require and how soon it begins after you have to stop working as a result of your illness or injury.
You’re covered for up to 75% of your income, less social welfare entitlements.
You may qualify for tax relief on your premiums up to your marginal tax rate.
Hope for the best and plan for the worst. Your health is your wealth.
To find out more about how to protect your income and receive an income protection quotation please do not hesitate to contact a member of our advisory team at Jim@hegarty.ie, Niamh@hegarty.ie, Frank@hegarty.ie & Ross@hegarty.ie or alternatively you can call the office directly on 01 4972544.
Hegarty Financial Management 40 years caring for our clients financial wellbeing.
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