You and your family may already be protected in the event of your death, but have you ever thought about how you would cope if you became ill and could not work for a prolonged period?
The State and your employer may provide you with benefits and/or sick pay, but if you are off work for a long period of time due to ill-health, you may find that your income will reduce considerably or even cease altogether.
Illness benefit explained
You may be entitled to Illness benefit from the Department of Employment Affairs and Social Protection if you cannot work because you are sick or ill. Illness benefit is paid to you regardless of what your employer's policy is for sick leave and sick pay.
Whether you qualify for Illness benefit or not depends on the number of PRSI contributions you’ve made and your average weekly earnings. For example, if you earn €300 a week or more, you may get €198 a week, depending on your PRSI contributions) which works out at just over €10,000 a year (Source: www.welfare.ie).
Employer sick pay
How much your employer will pay you while you are off sick - and for how long - is usually up to them. Details should be included in your contract of employment. Often, employers will set a maximum amount of sick pay that they will pay within a set period, e.g. one month’s sick pay for a period of 12 months. Alternatively, you may get full pay for a set period, then half pay, then no pay, so it’s worth checking with your employer what their sick pay rules are.
Protecting against a big reduction in income
A significant reduction in your income when you are sick can make it difficult to meet your family’s monthly bills, but you can protect against this happening.
What is a family protection plan?
A family protection plan can be used to protect you and your family from the financial uncertainty and hardship that can come with unexpected illness.
For certain specified illnesses diagnosed during the term of the cover, a lump sum payment may be available. For illnesses of lesser severity, a partial payment can also be provided during the term of cover.
What types of illnesses are covered under Specified Illness Cover?
The illnesses covered are severe ones that will most likely have you out of work for a lengthy period of time.
Specified Illness cover pays a benefit if you suffer one of the illnesses listed in your policy.
You can review the list of specified illnesses covered in your policy terms and conditions. In order to claim, your illness must also meet the definition specified under your policy terms and conditions.
Most of the claims paid are as a result of the most common illnesses such as cancer, heart attack or stroke.*
If I die, who is the benefit paid to?
If the Mortgage Protection policy is required by your lender to repay your mortgage, the benefit will be paid directly to your lender.
If the amount of cover is greater than the balance due on the mortgage, the remainder will be paid to your estate.
If the amount of cover is less than the balance due on the mortgage, the remainder will be owed to the lender by your estate.
Find out more
With cover in place, you can protect your family from the consequences of long-term illness. A Financial Planning Manager can take you through everything you need to know, using the very latest screen-sharing technology which avoids the need for face-to-face meetings.
Terms and conditions apply. Benefits are subject to underwriting and acceptance by Bank of Ireland Life. It is important to understand that certain restrictions and exclusions may apply.
*Bank of Ireland Life Claim Statistics 2019.
Disclaimer
Life assurance and pensions products are provided by New Ireland Assurance Company plc., trading as Bank of Ireland Life. New Ireland Assurance Company plc., trading as Bank of Ireland Life is regulated by the Central Bank of Ireland.
Advice on Bank of Ireland Life products is provided by Bank of Ireland, trading as Bank of Ireland Insurance & Investments. Bank of Ireland trading as Bank of Ireland Insurance & Investments is regulated by the Central Bank of Ireland.
Bank of Ireland is a tied agent of New Ireland Assurance Company plc trading as Bank of Ireland Life for life assurance and pensions business.
Members of Bank of Ireland Group.
