Income Protection

Cheapest Price in Ireland - Guaranteed

Quick & Easy Process

Income Protection

Cheapest Price in Ireland - Guaranteed

Quick & Easy Process

What is Income Protection?

  • Income protection is an insurance policy that pays a replacement income on a monthly basis for a specific period of time (usually retirement age) in the event of the policyholder being unable to work due to illness or injury.


  • The replacement income starts paying out after a certain period of time. This is called the deferred period. This can range from 4 to 26 weeks, depending on whether or not the individual has any sick pay entitlements with his/her job.


  • An Annual income can be insured ranging from €10000 per annum (minimum) to a maximum of 75% of your salary.


  • This Annual income is insured from the start date of the policy to a chosen term (usually the policy holders retirement age).


  • When on claim, this sum of money is paid on a monthly basis until the policyholder either return to work when fit or the chosen term of the policy’s (usually 60th/65th birthday of policyholder.

What is Income Protection?

  • Income protection is an insurance policy that pays a replacement income on a monthly basis for a specific period of time (usually retirement age) in the event of the policyholder being unable to work due to illness or injury.


  • The replacement income starts paying out after a certain period of time. This is called the deferred period. This can range from 4 to 26 weeks, depending on whether or not the individual has any sick pay entitlements with his/her job.


  • An Annual income can be insured ranging from €10000 per annum (minimum) to a maximum of 75% of your salary.


  • This Annual income is insured from the start date of the policy to a chosen term (usually the policy holders retirement age).


  • When on claim, this sum of money is paid on a monthly basis until the policyholder either return to work when fit or the chosen term of the policy’s (usually 60th/65th birthday of policyholder.

Below are the main benefits of having your income protected:

  • It makes sense to insure your home, your car and your family against the unexpected. But what about your income? What if you were to suffer an accident or long-term illness that prevented you from earning a living?


  • Income protection is designed to provide you with an alternative income if you suffer an illness or injury which prevents you from working. It is different from health insurance – it is insurance for daily living.


  • When illness or an injury leaves you unable to work you need the financial security of a product that keeps you on top of the bills that matter: mortgage payments, car loans, food bills, rent and more. After all, your income pays for everything.

Income protection helps take care of your financial needs while you are focusing on recovery at a time when money worries should be the last thing on your mind. Take a moment to think about how you would pay these normal household bills without an income.


  • Your income is your most important asset? You insure assets like your car/your house etc every year…… why not insure the asset that pays the premiums for all other assets/liabilities as well as your lifestyle?

Below are the main benefits of having your income protected:

  • It makes sense to insure your home, your car and your family against the unexpected. But what about your income? What if you were to suffer an accident or long-term illness that prevented you from earning a living?


  • Income protection is designed to provide you with an alternative income if you suffer an illness or injury which prevents you from working. It is different from health insurance – it is insurance for daily living.


  • When illness or an injury leaves you unable to work you need the financial security of a product that keeps you on top of the bills that matter: mortgage payments, car loans, food bills, rent and more. After all, your income pays for everything.


  • Income protection helps take care of your financial needs while you are focusing on recovery at a time when money worries should be the last thing on your mind. Take a moment to think about how you would pay these normal household bills without an income.


  • Your income is your most important asset? You insure assets like your car/your house etc every year…… why not insure the asset that pays the premiums for all other assets/liabilities as well as your lifestyle?

How does Income Protection work?

When applying for a quote the following items need to be chosen:

  • A sum of money to insure (min 10k/max 75% of salary)
  • The term the policyholder wishes to be covered for (usually your 60th/65th birthday).
  • The number of weeks that the policyholder needs to be off work before the policy starts paying out (usually 26 weeks). This is called the deferred period.

Please note the decisions made from the points above will have a direct correlation with the premiums of the policy.

For example some individuals might want to cover themselves for the maximum of 75% of their salary payable after 13 weeks when off work and payable until they retire @65 while others might only wish to cover enough funds to cover their mortgage repayments and monthly bill until the mortgage is paid off @60.

Another factor which effects the premium is your occupation. Some occupations, due to the nature of their work are more prone to illness/injury (Construction workers) and are more expensive that say Office/Admin workers etc. Occupations are rated from Class 1/2/3/4 with 4 being the most expensive. Please see below a list of occupations and the classes:

Occupational Class 1

Professional, managerial occupations, administration, clerical jobs, for example; accountants, home makers, and managers.

Occupational Class 2

Occupations involving occasional manual work, for example; agents, guides, chemists, barbers.

Occupational Class 3

Skilled manual occupations, for example; nurses, teachers, chefs, cleaners, factory workers, painters, drivers, paramedics, bartenders.

Occupational Class 4

Partly skilled and unskilled manual occupations, for example; construction site workers, fire fighters, guards.

How does Income Protection work?

When applying for a quote the following items need to be chosen:

  • A sum of money to insure (min 10k/max 75% of salary)
  • The term the policyholder wishes to be covered for (usually your 60th/65th birthday).
  • The number of weeks that the policyholder needs to be off work before the policy starts paying out (usually 26 weeks). This is called the deferred period.

Please note the decisions made from the points above will have a direct correlation with the premiums of the policy.

For example some individuals might want to cover themselves for the maximum of 75% of their salary payable after 13 weeks when off work and payable until they retire @65 while others might only wish to cover enough funds to cover their mortgage repayments and monthly bill until the mortgage is paid off @60.

Another factor which effects the premium is your occupation. Some occupations, due to the nature of their work are more prone to illness/injury (Construction workers) and are more expensive that say Office/Admin workers etc. Occupations are rated from Class 1/2/3/4 with 4 being the most expensive. Please see below a list of occupations and the classes:

Occupational Class 1

Professional, managerial occupations, administration, clerical jobs, for example; accountants, home makers, and managers.

Occupational Class 2

Occupations involving occasional manual work, for example; agents, guides, chemists, barbers.

Occupational Class 3

Skilled manual occupations, for example; nurses, teachers, chefs, cleaners, factory workers, painters, drivers, paramedics, bartenders.

Occupational Class 4

Partly skilled and unskilled manual occupations, for example; construction site workers, fire fighters, guards.

What Illnesses does Income Protection cover?

Income protection contrasts highly to any other type of cover when comparing the conditions that the policyholder can claim on. For example, a serious illness policy will only pay out on a serious illness (Cancer/Cardiac arrest/MS/Parkinson etc). It may in fact only pay out partially for certain cancers/heart conditions etc.


Income protection pays out on all illness and injuries. It cover stress related illnesses, any injuries that restrict the policy holder from working (Knee/back injury, injuries sustained in an accident that are not classed as a ‘serious illness’ etc).


It basically pays out any condition that your doctor will confirm in writing that you are unfit/unable to perform their day to day tasks associated with your job.

Income Protection Premiums and Tax Relief

A huge benefit with income protection as opposed to any other protection policies (life cover/Personal Accident cover/Serious illness cover) is that the monthly premiums qualify for tax relief.


So for example if you are earning over €36800 per year you are usually paying income tax @40%. In this situation, you would be due a tax rebate of 40% of the income protection premium. If the monthly premium is say €100, then you would be due back €40 as a tax rebate each month.


How the tax relief is applied and received:


The Gross premium is debited from your bank account each month. The tax rebate is added back to your take home pay on your payslip on a monthly basis.


Once the policy goes live, the relevant insurance provider sends an Income Protection certificate to the revenue to prove that your policy is now live which will in turn instruct them to alter your tax credits accordingly.


When this is complete you will receive the relevant tax rebate back in your tax home pay on a monthly basis. You will in effect notice an increase in your take home pay by the rebate amount once the revenue alters your tax credits.


Please note that it may take 6 week or so after your start date before you start receiving your rebate but all tax relief due will be backdated and paid in full once your tax credits are adjusted etc.


There is no action required by you to qualify for the tax relief. This will all be done for you by the Insurance provider and your local tax office.

What Insurance Companies Provide Income Protection For Public Servants?

Most of the main insurance companies provide cover income protection cover for public servants (Aviva, Zurich, Irish Life, Royal London, New Ireland). We compare all providers income protection offer for public servants in relation to:

  • Cheapest premium.
  • The price discounts available by each company at that particular time.
  • Additional other free benefits that each provider offer (eg Best Doctors/Family Car and Helping Hand/Hospital cash/return to work rehabilitation etc).

Once we compare all of the above points, we will recommend the most suitable provider with the cheapest premiums for you income protection policy.

Bonus Benefits

The following benefits are offered by each of the different companies and are free of charge. They are available to all policy holders.


This benefit pays you 1/365th of your annual income protection benefit for every day that you are in hospital. This benefit is payable even though you are not on claim with your policy, your deferred period is irrelevant.

With this additional free benefit from Aviva, you, your spouse, your parents, your spouses parents, and your children (under the age of 18) all have access to a designated Psychologist/Councellor 24/7, 365 days of the year.

All parties mentioned above will have access to complementary counseling sessions held either over telephone or face-to-face. These are confidential sessions that can cover any issues any person above may be having, for example;

  • Dealing with Bereavement
  • Changing Careers or any career challenges
  • Bullying issues either at work or in school
  • Financial Issues or stress
  • Any other psychological issues

With this additional bonus benefit from Aviva, you, your spouse or partner, your parents, your spouse’s/partners parents and your children (up until their 23rd birthday) have access to an independent and confidential medical second option service.


If you develop a serious or worrying medical condition for which you have been seen by a medical specialist and you have questions about your diagnosis or treatment, at no additional cost to you, Best Doctors can perform an in depth assessment of your diagnosis and treatment options and answer any questions you may have about your condition.


It’s not just for serious conditions such as cancer, heart attack etc the service is available for any medical condition considered to be of critical, chronic or degenerative nature such as sports injuries, severe migraines or back pain.


The second medical option is obtained by one of the most specialised doctors in your specific condition in the world. There is a panel of 25,000 doctors on this panel across the world and you can get this doctor to review your file, x-ray, medication prescriptions etc. This specialist doctor will then write a report of his recommendations and send it back to you to implement.


Statistics from Aviva over the previous 5 years have shown that, of the policy holders who used this service, 20% had had a change in diagnosis form what their own doctor had prescribed them, and 75% had been recommend to change the medication and treatment that they have been advised to take or implement by their own doctor.



With this free benefit offered to all Royal London policy holders, you, your spouse/partner, your parents, your spouses/partners parents and your children (up until their 23rd birthday) have access to a one to one personal support from your own Nurse Adviser from Red Arc who can help you and your family cope with the devastating effects that illness or bereavement can have. It is important to note that the benefits below apply to all of your family members, (you, your spouse and your children). Helping Hand provides access to:

  • Bereavement Counsellors
  • Speech and Language Therapists
  • Physiotherapists
  • Face to Face second medical opinions
  • Complementary Therapies
  • Massage

Please note that you do not have to be on claim to use these benefits, you only have to be a policy holder.


Important Terms of Income Protection

This is the amount of time you have to be off work continuously, due to illness or injury, before your income protection benefit starts being paid. This is called the “Deferred Period”. You can choose a deferred period of 4,8,13,26 or 52 weeks. You can match this time to suit your personal circumstances, for example: it could be based on your employer’s sick pay rules, so you would choose your deferred period to match the amount of time your employer will provide sick pay, so as soon as your employer’s sick pay ends your income protection benefit would start. Or it could be driven by cost.


The length of the deferred period you choose will impact the cost of your policy. The longer the deferred period, the lower your monthly premium. For additional flexibility, you can choose two deferred periods within your policy. For example: you can choose to provide a certain amount of income protection benefit after shorter deferred period and a higher income protection benefit amount after a longer deferred period. This may be useful in order to best match employer sick pay scheme or to help reduce the overall cost of cover.


You can claim tax relief on all premiums you pay at your marginal rate of tax, if you currently pay income tax. This means that if you are taxed at the higher rate of 40%, on a €100 premium you will get €40 tax relief – so the net cost to you is only €60. The tax relief has to be claimed from Revenue and we can send the certificate directly to them for you.


While you are in receipt of an income protection benefit payment, you will not have to pay the premium related to that benefit. This is called a waiver of premiums. For example: Mary has a car accident and goes on sick leave from work. Following the selected deferred period, she starts to receive her income protection benefit and she does not need to pay any monthly premium payments. Once well enough to return to work in the future, her cover can resume, along with her premiums, until Mary reaches her selected expiry age.


Inflation impacts the general cost of living, as it means the price of goods and services increase over time. By adding indexation to your policy, your cover increases by 3% each year, in return for a 3.5% increase in your premiums each year (this may differ between insurance companies). In the event of a valid claim, your income protection benefit will continue to increase by 3% each year while the claim is being paid. This helps offset the negative effects of inflation.


The purpose of income protection is to provide you with an income if you are unable to work because of an illness or injury. Your ability to work will be assessed and based on your normal job, whether you can carry out the essential duties it requires. In insurance terms, this is called own occupation cover, because of this, the availability and cost of income protection cover is directly related to your job or occupation.


Some occupations are considered to be a higher risk than others. For example: an accountant will generally pay a lower premium for the same level of cover compared to a builder. This is simply, because the builder has a higher chance of suffering an accident at work compared to an accountant. Due to the degree of occupational risk involved, there are some occupations that will not be accepted for income protection cover. There are four different occupational classes for cover. People in the lowest risk occupations pay the lowest premiums while those in higher risk occupations pay a higher premium. This is based on a standard risk assessment across occupations. Although there are some exceptions for certain occupations, the four broad categories available are:


Occupational Class 1 – Professional, managerial occupations, administration, clerical jobs, for example; accountants, home makers, and managers.


Occupational Class 2 – Occupations involving occasional manual work, for example; agents, guides, chemists, barbers.


Occupational Class 3 – Skilled manual occupations, for example; nurses, teachers, chefs, cleaners, factory workers, painters, drivers, paramedics, bartenders.


Occupational Class 4 – Partly skilled and unskilled manual occupations, for example; construction site workers, fire fighters, guards.


If you would like to Book an Appointment to speak with a Financial Advisors

about your calculations, please contact us here:

If you would like to Book an Appointment to speak with a Financial Advisors about your calculations, please contact us here:

Other Types of Insurance Available

Life Cover

Life cover pays out either a lump sum or an income in the event of your death. Life Cover is purchased by individuals who want their family to receive a lump sum of money if they die prematurely. The money can be used to ease the financial burden on a family after bereavement.


Serious Illness Cover

Serious illness policies provide you with a tax-free lump sum in the event of you being diagnosed with one of the specified serious illnesses covered on your policy. There are over 50 specified illnesses covered and partial payouts for over 20 specified illnesses.

Mortgage Protection

Mortgage protection is life insurance that pays off your mortgage in the event of your death. The sum of money insured under a mortgage protection policy reduces down each year in line with your mortgage balance outstanding. So as your mortgage reduces, so too does your mortgage protection insurance.

© 2020 Money Maximiser | Money Maximising Advisors Limited is regulated by the Central Bank of Ireland - C154250 | Privacy Policy

Other Types of Insurance Available

Life Cover

Life cover pays out either a lump sum or an income in the event of your death. Life Cover is purchased by individuals who want their family to receive a lump sum of money if they die prematurely. The money can be used to ease the financial burden on a family after bereavement.


Serious Illness Cover

Serious illness policies provide you with a tax-free lump sum in the event of you being diagnosed with one of the specified serious illnesses covered on your policy. There are over 50 specified illnesses covered and partial payouts for over 20 specified illnesses.

Mortgage Protection

Mortgage protection is life insurance that pays off your mortgage in the event of your death. The sum of money insured under a mortgage protection policy reduces down each year in line with your mortgage balance outstanding. So as your mortgage reduces, so too does your mortgage protection insurance.

Money Maximising Advisors Limited

© 2020 Money Maximiser | Money Maximising Advisors Limited is regulated by the Central Bank of Ireland - C154250 | Privacy Policy