Buying your first home is exciting but can also be overwhelming. For first-time buyers in Ireland, understanding the mortgage process, and also knowing where to start is crucial. To make…
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Do I need Income Protection?
Whether or not you need income protection insurance depends on your individual circumstances and financial situation.
Income protection insurance is designed to provide you with a regular income if you are unable to work due to illness, injury or disability. If you rely on your income to support yourself and your family, then income protection insurance can provide financial security and peace of mind by ensuring that you have a steady stream of income to cover your living expenses, even if you are unable to work.
If you have significant savings or other sources of income that can provide for your living expenses in case of disability or illness, then you may not need income protection insurance. However, if you do not have a financial safety net or other sources of income to rely on, then income protection insurance can be a valuable tool for protecting your financial security.
What do I need to consider?
It’s important to consider your individual circumstances and financial situation when deciding whether or not to get income protection insurance. Speak with MortgageLine and we will evaluate your needs and find the right income protection policy for you.
It’s also important to carefully review the terms and conditions of any income protection insurance policy before purchasing it to understand what is covered and any exclusions or limitations. MortgageLine can help with this.
Get in touch today and a MortgageLine Financial Adviser will review your circumstances and provide an income protection quote for you and your family.
Why Income Protection?
Protect Your Most Important Asset: Your Income
In Ireland, we insure everything from homes to gadgets, yet often overlook our most crucial asset—our income. It’s the foundation that supports all your purchases and financial goals, from daily living expenses to long-term saving and investing plans. Without it, financial resilience is compromised, and achieving future goals becomes a distant dream.
Understanding the Impact of Income Loss
A sudden loss due to illness or injury can devastate your financial stability, making it challenging to maintain your standard of living. Current state illness benefits amount to approximately €232 per week (2024), which might not suffice. Income Protection steps in to bridge this gap, ensuring you can maintain your lifestyle and financial pathways.
Do I Need Income Protection?
Who Benefits from Income Protection?
If you rely on your income to support yourself and your family, consider how you would manage if you were unable to work due to illness, injury, or disability. This insurance provides a regular income when you need it most, offering peace of mind and financial security.
When Might Income Protection Be Unnecessary?
For those with significant savings or alternative income sources sufficient to cover living expenses during periods of illness or disability, income protection might not be as critical. However, if you lack these financial safety nets, it’s a crucial safeguard.
Did you know? Nearly 1 in 4 workers will become disabled at some point during their working life.
What to Consider When Choosing Income Protection
Coverage Specifics and Flexibility
Income protection is more than just insurance for serious illnesses; it also covers common issues like mental health challenges and back injuries. It’s designed to accommodate any certified illness or injury that prevents you from working. You can choose how soon benefits start (deferral period) and how long they last (until age 55 to 70).
Tax Benefits and Cost Considerations
Enjoy tax efficiency with Income Protection in Ireland. The net premium you pay is only 20/40% of the gross premium, based on your marginal tax rate. While the standard quote provides up to 75% of your gross income (minus state benefits), options for lower coverage are available if cost is a concern.
How MortgageLine Can Help
Tailored Financial Advice
Here at MortgageLine, we don’t just set up your policy; we guide you through selecting the best Income Protection plan for your needs. We compare offers across various life insurance companies to ensure you get the best rates.
Ongoing Support
Our commitment doesn’t end with arranging your cover. We’re here to assist you with any future queries or adjustments you might need. Our advisors are dedicated to helping you maintain your financial security through all of life’s ups and downs.
Get Your Personalized Quote
Speak with a MortgageLine Financial Adviser today to review your circumstances and get a tailored income protection quote designed to protect you and your family’s future.
Frequently Asked Questions
What Is Income Protection Insurance, and Who Needs It?
Income Protection Insurance is designed to provide you with a regular income if you are unable to work due to serious illness, injury, or disability. This type of insurance is essential for individuals who rely on their income to support themselves and their families. It offers financial security by ensuring a steady income stream during periods you cannot work, thus covering living expenses and providing peace of mind.
Can I get tax relief on Income Protection Insurance?
Yes, this is a major advantage of Income Protection, that it is tax efficient. You can claim full tax relief on the income protection premium at your marginal tax rate. This is only available if you claim the tax relief through Revenue one of two ways, 1. adjustments to your tax credits or 2. Submit an end of year return for a tax rebate. Our Financial Advisors can offer more details on this.
Can I take out income protection if I am Self Employed?
Yes, you can apply for income protection if you are self Employed and earn an income. Your income will be assessed at the time of claim, you will need to be in active employment at time of claim.
How Can MortgageLine Assist with Finding the Right Mortgage or Insurance Policy?
MortgageLine provides expert advice and helps clients navigate the variety of mortgage and insurance options available. They offer personalised guidance to match you with suitable mortgage providers and ensure that you get competitive insurance quotes. They also assist with the entire home buying or mortgage switching process, from initial consultation to finalising the mortgage or insurance policy.
