Accident or illness. Can’t work. Don’t worry.
The key question with this cover is when should the benefit start paying out? The “deferred period” is usually 13 weeks. This means you must be off work for more than 13 weeks before the insurance kicks in. After that time you are covered up to retirement should your illness or disability last that long.
If your job covers your income for long periods, or if you have significant financial resources to support you, you could take a longer deferred period, which would reduce the cost of the cover. Alternatively, you might seek a shorter deferred period, which is available for certain occupations.
Some occupations will not be eligible for cover while others will attract higher premiums. You should discuss the nature of your job, particularly any risk factors associated with it, with your Financial Broker so that they can give you a clear idea of the cost and availability of cover.
Your Financial Broker will assist you with the form filling and will ensure the policy is set up correctly.
Benefits
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Tax Relief
Income protection pays a taxable income benefit if you are unable to work. The monthly cost of the policy gives you tax relief at your marginal rate.
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Reduce the Cost of the Cover
If your job covers your income for long periods, or if you have significant financial resources to support you, you could take a longer deferred period, which would reduce the cost of the cover. Alternatively, you might seek a shorter deferred period, which is available for certain occupations.
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Clear idea of the Cost and Availability of Cover.
Some occupations will not be eligible for cover while others will attract higher premiums. You should discuss the nature of your job, particularly any risk factors associated with it, with your Financial Broker so he can give you a clear idea of the cost and availability of cover.
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Find the Right Cover for your Needs
You can insure up to 75% of your income, less any entitlements to social welfare. Self-employed people and propriety company directors don’t have social welfare entitlements for disability so this cover is essential for them. Your Financial Broker will be able to advise on the appropriate level of cover, taking into account your income needs, your benefit entitlements, and the cost and availability of cover.
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Combined Serious Illness Cover
You may wish to take a combination of serious illness cover and income protection to cover lump sum and income needs. Your Financial Broker can advise on the best mix for you.
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Making the Process Easy
Applying for cover starts with completion of a medical proposal form. The life insurance company may write to your GP for a report, and in some cases a medical examination is required. Once you are accepted by the life company, cover is permanent for the term of the policy regardless of what happens to your health. Your Financial Broker will assist you with the form filling and will ensure the policy is set up correctly.
Things to watch out for
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Cover may be arranged on an “own occupation” (you are unable to perform your usual job) or “any occupation” (you are unable to perform any job) basis.
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Large income restrictions apply.
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You may be required to notify and be assessed for changes in your occupation over your career.