Income Protection Quote

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.


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Why People Choose Us

Quick & Easy

Get an online quote in minutes - no complicated forms to fill out. It's free to use and make comparing prices across suppliers quick and easy!

Save Time & Money

No need to spend hours comparing different insurance providers for the lowest quote - we compare them all in the one place!


You Can Trust Us

We’re 100% impartial and are also regulated by the Central Bank of Ireland. Our reputation is built on years of giving the best advice possible to our clients.

Money Maximising Advisors Limited

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