Safeguarding your Earnings: Understanding Income Protection

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What is income protection insurance?

Income protection insurance can provide you with up to 75%* of your income if you can’t work due to illness, injury, etc.

Your savings may not be enough

According to a recent report, the average person has savings up to €2,000**. This isn’t much when you consider that an emergency fund should ideally cover 3-6 months of household expenses. If your savings fall short, income protection can offer a crucial financial buffer if you find yourself unable to work and earn a wage as a result of injury or illness.

Main benefits of income protection insurance

Income protection insurance offer several key benefits:

Receive up to 75%* of your current earnings in regular payments until to age 65.

Help you maintain your current standard of living.

Choose when the payments start - 8, 13, 26 or 52 weeks after an accident or illness from the date you’re first unable to work due to injury or illness.

Help towards repaying your mortgage and household bills.

What does income protection insurance cost?

 

Your premiums depend on factors like age, smoking status, and the amount of cover you choose. Generally, younger and healthier individuals who avoid risky activities pay less. To lower your premium, you can opt for a longer waiting period before you’re eligible to make a claim and a shorter benefit period for receiving payments.

Protecting other parts of your life

While protecting your income is vital, other types of insurance should also be part of your financial wellbeing plan. Life is unpredictable, and having adequate life insurance is essential. Here are some types of life insurance to consider:

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Life or term life insurance:

Pays a lump sum if you die.

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Critical illness insurance:

Pays a lump sum if you’re diagnosed with a condition among those covered in your policy.

Depending on your needs and financial resources, you might need a combination of these products. For example, life insurance will not cover you if you stop working due to injury or illness. To be fully covered, consider income protection insurance alongside these types of life and illness insurance.

Want to protect your income from the unexpected?

Understanding your insurance needs and protecting your lifestyle can be challenging. A financial advisor can give you personalised advice to help you take care of yourself and those who depend on you. That’s where we can help. Tap below to start your income protection journey today.

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*Up to 75% of your income, minus any other entitlements such as half pay, Ill Health Early Retirement Pension, Temporary Rehabilitation Remuneration, or State Illness/Invalidity Benefit. Note that some plans may offer a lower benefit amount. You can submit an income protection claim once you’ve exhausted your employer’s sick leave entitlements and completed the scheme’s ‘deferred period’—the waiting period before benefits are paid.

**Red C, Financial Wellbeing and Financial Literacy Survey September 2024.

Terms & conditions apply. Benefits are subject to underwriting and acceptance by Bank of Ireland Life. Life assurance premiums are subject to a Government levy (currently 1% of the premium amount).
While great care has been taken in its preparation, this document is of a general nature and should not be relied on in relation to specific issues without appropriate financial, insurance, investment or other professional advice. The content of this document is for information purposes only and does not constitute an offer or recommendation to buy or sell any investment or to subscribe to any investment management or advisory service. While the information has been taken from sources we believe to be reliable, we do not guarantee its accuracy or completeness and any such information may be incomplete or condensed.
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.

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