Income protection

Frequently asked questions

• Is there tax relief available on income protection?

  Yes, income protection premiums (up to certain limits), qualify for tax relief at your marginal rate. It is important to understand tax relief is not automatically granted, you must apply to and satisfy Revenue requirements. Revenue limits, terms and conditions apply.

  • If you’re employed – the life insurance company will deduct tax and social insurance payments from your benefits in the same way that your employer would.
  • If you’re self-employed – it may be payable gross. It should be treated like trading income in your accounts.

  How much tax relief could I claim on my premiums?
  You can claim tax relief on your premiums at your marginal rate of tax, up to a yearly limit of 10% of your total income.

  How do I claim tax relief?
  You will receive a statement showing the premiums you have paid each year from your insurance company. To claim your tax relief, you can register for tax credits by using the PAYE Anytime systemon revenue.ie or send your income protection policy statement to the tax office directly.

  • If you’re a PAYE employee – once you’ve registered, your payslip should show the relief that you have received.
  • If you’re self-employed – the tax relief can be claimed when you file your end of year tax return.

• How much does income protection cost?

  The cost of income protection depends on the the options you select when applying for your policy. For example:

  • The percentage of your income you cover
  • The length of time you wish to be covered
  • The waiting period before the payment starts
  • Your job – some occupations are higher risk than others
  • Your age
  • Whether or not you smoke
  • Your health and your family’s medical history
  • Tax relief is available on income protection premiums paid up to certain limits.

• Is income protection flexible?

  Yes, it’s designed to adapt to your changing needs. With income protection, you can:

  • Increase your cover as your career grows – use our ‘Guaranteed Insurability’ option to boost your cover as your salary increases.
  • Keep up with inflation – choose to increase your premium and benefits each year (up to 3%) to help your cover keep pace with the cost of living.
  • Get extra support when returning to work – if you’ve been claiming for a year or more and return to work, our ‘Back to Work’ benefit will pay you 50% of your replacement income in the first month of your return and 25% in the second month.
  • Get cash while in hospital – If you have to stay in hospital for more than 7 days after your date of disability and before your income protection claim payment commences, our ‘Hospital Cash’ benefit will pay you the equivalent of a day’s replacement income for every additional day spent in hospital, up to a total of 365 days.
  • Secure your payout, even if your income drops – with our ‘Confirmed Income’ option, if your income falls during the term of your policy, we’ll still pay you based on your original, confirmed income.
  • Stay covered through life changes – with our ‘Esssential Activities’ benefit, your policy can continue even if you change jobs, become unemployed, take a career break, or go on parental leave.
  • If you become unemployed and experience a serious disability, you could receive up to €15,000 a year (if you meet certain criteria).
  • If you return to work within 12 months, you can reinstate your full cover without new medical checks.