FAQ’s
Is Income Protection worth having?
Income Protection is essential for ensuring financial stability should you become ill or injured. If you became ill or injured and you were out of work for months or even years, would your savings weather the storm? Would you be able to pay your mortgage and bills? If the answer is no, then Income Protection is a product you should be seriously considering.
What illnesses are covered by Income Protection?
A minor injury or illness that might keep you off work for a morning or a day does not qualify for income protection insurance.
If you break your leg but can still work, it is not covered by income protection.
Injuries and illnesses that prevent you from working are covered by income protection insurance.
Can I have multiple Income Protection policies?
Yes, you can have multiple income protection policies in place However the maximum amount you can claim is 75% of your pre-tax income, so it's important to ensure you're not over-insured and paying a premium for something that you could never claim from.
Who provides Income Protection in Ireland?
Aviva, Royal London, Zurich, Irish Life and New Ireland all provide Income Protection. Citywide Financial have an agency with all of these providers.
Can I get income protection if I have a pre-existing medical condition?
Yes it is possible to get income protection insurance with a pre-existing condition. However in some instances the insurer may exclude claims related to that condition from the outset (an exclusion), charge a higher premium (a loading), or impose a waiting period before agreeing to cover the condition. It's vital to be honest about your medical history when applying for a policy.
Can I claim tax relief on my Income Protection premiums?
Yes, tax relief can be claimed at your marginal rate of tax (either 20% or 40%)
Can you claim Income Protection if you lose your job?
No, income protection will cover you if you are unable to do your job due to illness or injury
It doesn’t protect you if you are fired or made redundant.
What Does Income Protection NOT Cover?
Income protection will not cover
· Redundancy - see previous question
· Your maternity leave – having a baby is not a medical condition, so you will not be covered for this. However, you can put in a claim if you can’t go back to work due to a pregnancy related complication.
· Illnesses or injuries that prevent you from working temporarily but you return to work before you complete your deferred period e.g. you contract glandular fever and are sick for 4 weeks, but your deferred period is three months.
How does Income Protection work if you are a director of a Limited Company?
Taking out Executive Income Protection through your company is a great option as your company can pay the premiums and there is no BIK for a company director.
It is also a tax efficient way to use company cash as the company can claim Corporation Tax relief on the premiums
A company can also take out executive income protection for any staff member ( not just a director)
Using a broker like www.citywidefinancial.ie ensures that you get great service and price as well. If you’re looking for a quote, or would like us to review your existing policy, get in touch on 01 513 9810 – info@citywidefinancial.ie
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