Income Protection

How would you and your family cope financially, if you were out of work for a long period due to illness or injury? Do you know how much income, if any, you would receive from your employer?

While we ensure such things as our houses, cars, even our gadgets, the most important thing you should insure is your income, as it is your most valuable asset.

If your health is currently in ‘no-claim-bonus’ territory you should not expect to pay more than the price of a good drink per week. Your government is even willing to provide tax relief on the contributions paid.

“It will never happen to me”.

Unfortunately, no one knows what’s around the corner. Serious illnesses are on the rise. One in three people expected to be diagnosed with a critical illness at some point in their lives.

In addition to this, you have a 30%, or 3 in 10, chance of being out of work for more than 90 days at some point in your working life. As much as we try to look after our health and wellbeing, some things are outside of our control.

“I could manage with social welfare payments”.

The current rate of illness benefit in Ireland is €188 per week. For most people, this is significantly less than their weekly take home pay.

However, your expenses will more than likely increase if you have medical bills to pay. Regardless of your health status, expenses such as mortgage repayments, rent, car loans, insurance, groceries and household bills will still have to be paid.

During a period of ill-health, the last thing you should have to worry about is meeting your financial commitments, as an increase in stress levels would not be beneficial.

“My employer would look after me”.

Most private sector employers don’t offer long term income protection. If you work in the public sector, you will have noticed that your sick leave entitlements have been cut dramatically over the last few years.

“I have enough in savings to get by”.

How much will you need? You may not know how long you will be out sick for or what if you are unable to return to work? Medical bills can add up very quickly and you could see your hard earned savings wiped out very quickly.

More than likely, your savings will be earmarked for something in the future such as your children’s education, new car, home improvements etc.

In a survey undertaken by Zurich life, nearly 47% of respondents reported being willing to accept a better benefits package, including income protection benefits, rather than higher wages. Employers have a greater role in helping to protect their employees financial well-being. If you are an employer, don’t hesitate to contact Infinity Financial Planning to discuss group income protection for your staff. There are tax benefits for all concerned, as well as peace of mind.

The bottom line is.

If you have financial commitments and/or a family that depend on your income every month, you need income protection. Your income and your ability to earn a living are your most important assets, as they pay for everything else.

Income Protection pays you a salary (up to 75% of your pre-disability salary) until you are well enough to return to work. This would allow you to maintain your current standard of living and meet your financial commitments.

Don’t put it off any longer, protect what matters the most – you and your family and your current lifestyle.

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