Public Sector Income Protection

"Income protection specifically tailored for the Public Sector"

What is Income Protection?

  • Income protection is an insurance policy that pays a replacement income 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.
  • A maximum of 75% of your salary can be paid out by the insurance policy.

Public Sector Income Protection

  • Our Public Sector Income protection pays out a replacement income after your sick pay entitlements run out from your employer (usually 26 weeks)
  • It is payable up to your retirement age, or whatever age you choose.
  • It ensures that you have an income to maintain your and/or your families standard of living along with having income to pay for your mortgage/rent etc.

Public Sector Income Protection is specifically tailored to coincide with your sick pay entitlements.

This policy will pay you a replacement income once your public sector sick pay entitlements cease.

Below is an illustration of your public sector sick pay entitlements.

3. Public Sector Sick Pay Entitlements

As a public sector employee, you are entitled to the following sick pay entitlements illustrated below;

  • If you are unable to work due to illness/injury, you are entitled sick pay of 3 months full pay and 3 months half pay. This entitlement is doubled if diagnosed with a serious illness.
  • Once this entitlement ceases, you are then entitled to temporary Rehabilitation Pay for a further 18 months to 2 years - depending on your circumstances.
  • If an A1 employee, you are entitled to state illness benefit once your original sick pay entitlements cease.
  • If you retire from your job after 2 years or so, you are then entitled to Ill Health Early retirement.

The illustration below demonstrates the income including sick pay entitlements of a teacher earning € 50k per annum who is out of work due to illness/injury.

Could you survive on your sick pay entitlements over a long term period if you were unable to return to work?

It is always recommended that all public sector employees take out an Income Protection policy that coincides with the sick pay entitlements mentioned above. This will ensure that your income is protected in the unfortunate event of you getting diagnosed with an illness that prohibits you from earning an income for a long term period.

When is Income Protection most important?

Income protection is most important when you are young. If you are unable to work for a long term period or are diagnosed with a serious illness at a relatively young age, your ill health Early retirement pension entitlement will be very too small to live off for the rest of your life. In this situation, income protection will ensure that you get 75% of your salary until your 60 th /65 th birthday, whichever age you choose. It will allow you to be able to pay your bills and have a decent standard of living.

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Diarmaid Blake and Lorna Egan

Money Maximising Advisors Limited

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