Business

What Is Income Protection Insurance and Why Do You Need It?

When you’re putting together your financial plan, it’s easy to focus on your assets, like the money in your bank account or the value of a house. But these things can be taken away from you at any time. Nobody knows what tomorrow will bring, but we can all agree that income is valuable. That’s why it’s important to take out an income protection policy today in case something happens to you that prevents you from earning a living in the future.

Your Income Is Your Most Valuable Asset

income protection insurance ireland is a form of life insurance that pays you an income if you are unable to work due to illness or injury. It can cover you for up to 75% of your salary, so it’s useful in case of long-term illness or injury, and not just short-term ones like having a broken arm.

It’s important to note that income protection insurance is not the same as sick pay or disability benefits – those are provided by employers and only pay out a small percentage of your salary for a limited period of time (usually about 6 months). Income protection wouldn’t replace those payments; instead it will replace what you would normally earn from working if something stops you from working full-time.

What is income protection insurance?

Income protection insurance is a policy that pays out a monthly income if you are unable to work due to illness or injury. It’s an important type of cover because it can help bridge the gap between your earned income and any benefits you may receive from the government during this time.

An income protection policy will typically pay out a fixed amount, such as 75% of your salary, for 24 months at least. You might be able to extend this period up to 36 months. The monthly payments will help with living expenses so you don’t have to dip into savings or borrow money from family and friends every month.

It’s important to have an income protection policy in place as it is one of the biggest costs for most people and can affect your ability to pay bills like rent and utilities without having any financial support from their employer when they’re off sick or injured.

Why you need income protection insurance.

The reason why income protection is so important is because, if you’re unable to work and earn an income, there’s no safety net in place. You could find yourself out of work for a long time, which could lead to significant financial problems. Income protection can help ensure that you have the money needed to pay off your debts, cover day-to-day living expenses and keep your family afloat during this difficult time. If a serious injury or illness prevents you from working permanently then it’s vital that you have some form of income protection in place for when the worst happens.

How Much Does It Cost?

The cost of income protection insurance ireland depends on your age, health and the type of job you do. It can start from as low as €50 per month for people aged 21-30 to over €250 per month for people aged 61-65. The premium will be higher if you have a pre-existing condition or need cover for more complicated circumstances like long term illness or carer’s leave.

You can get an accurate quote online by filling in our form here!

Nobody knows what tomorrow will bring. It’s important to take out an income protection policy today in case something happens to you that prevents you from earning a living in the future.

Nobody knows what tomorrow will bring. It’s important to take out an income protection policy today in case something happens to you that prevents you from earning a living in the future.

For example, if you have an accident or illness that prevents you from working and earning money, income protection insurance will pay out a monthly benefit until it’s time for your retirement. You can use this money to cover the costs of:

  • mortgage payments
  • rent (if applicable)
  • everyday living expenses

Conclusion

The bottom line is that income protection insurance is crucial for anyone who wants to protect themselves against the risk of not being able to earn a living in the future. It’s easy to take out, affordable and covers all sorts of situations including illness, injury or redundancy. If you’re looking for a way of protecting yourself against these risks then income protection insurance could be just what you’re looking at!

Kate

Kate Johnson is a content writer, who has worked for various websites and has a keen interest in Forex and stock market. He is also a college graduate who has a B.A in Journalism.

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button