An Income Protection policy is a simple, tax efficient and inexpensive insurance policy which pays a guaranteed income if you are unable to work or if you suffer loss of earnings due to a disability, an injury or an accident.
In most cases, if you are out of work due to long term illness, an employer is only obliged to pay your salary for a short set period afterwards you will only be entitled to €197 per week (for a single person) from the state. The questions you should ask are:
- If i'm off sick, what are my employer’s responsibilities?
- Will this be sufficient to maintain my current lifestyle?
- How will I be able to meet my regular commitments?
If the answers are causing you concern, you should contact PAX Asset Management to discuss implementing an Income protection policy. Importantly any premiums you pay are fully tax deductible and therefore the NET effect on your salary is significantly reduced. We have calculated the typical cost of an income protection policy for in the table below:
The table shows that a typical salesman aged 35 must only make a NET monthly contribution of €46.50 to be assured of a benefit of €27,000 per year if off work for a period longer than 13 weeks.
Pax Asset Management will discuss your requirements and, on your behalf, request quotes from all the Irish income protection providers, compare them and recommend the policy most suitable to your needs. So to get protected please contact our skilled QFA advisors by completing the inquiry form below, or by calling 01 652 0394 now.