Tel: 074 912 4366
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‘Needing insurance is like needing a parachute. If it isn’t there the first time, chances are you won’t be needing it again.’

‘Needing Insurance is like needing a parachute.  If it isn’t there the first time, chances are you won’t be needing it again.’

Income Protection is one such insurance.  When you are feeling healthy, it can be difficult to imagine that an unexpected illness or injury might make it impossible for you to work. And yet almost everything in life depends on your income.

This graph from Friends First shows that €50,000 in savings would last just 17 months, based on monthly outgoings of €3,000. While I imagine the outgoings are more in line with someone living in Dublin, it is a scary representation of how quickly you could deplete your savings in the event of being out on long-term sick leave.

 

The benefit of Income Protection is that it provides you with a replacement income of up to 75% of your usual income in the event that an accident, illness, or injury leaves you unable to work. It also qualifies for tax relief at the same rate as you pay income tax.

You should look for an income protection policy that offers a rehabilitation benefit.  For some, recovery means a chance to return to work. For others it might mean getting the right medical help and finding the correct diagnosis. Some people find that they are no longer able to work in their former occupation, and in those instances, our providers have helped people to retrain. A recent example is of a butcher who had to stop work due to a cardiac condition. Over the last year, his insurance company helped him engage with their career change consultant, who helped him to update his CV, identify alternative careers, and improve his job hunting skills. He has now secured a new job in a different field, meaning he can return to work, albeit in a different capacity.

People in some occupations may find it more challenging to get Income Protection cover because certain risky occupations can be rated or excluded. The good news is that an alternative type of cover is now available, allowing families to protect some of their bills, such as their mortgage (or rent), electricity, and heating payments.

Get in touch with a good financial advisor like me to discuss which options are best suited to you and your family.

You can contact Shona by phone on 074 9124366

Shona Chambers QFA RPA is a Financial Advisor with John McColgan Financial Services Ltd

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