Income Insurance, also known as income protection provides you with a replacement income if you cannot work as a result of an illness or injury after a certain period of time.
How would you pay your monthly bills, mortgage, school fees, leisure activities etc if your income was gone or reduced significantly. You can take out income insurance if you are in full-time work or are self-employed and earn an income. It can be paid through the business. It protects you only in these circumstances – it will not be paid if you become unemployed. You must keep up your payments to stay on cover.
It pays you a regular monthly income, replacing some of your earned income. Cover continues up to age 70 or if you return to work. Payments on your plan are eligible for income tax relief at your marginal rate of tax. However, if you do claim on this plan, your incapacity benefit will be treated as normal income and so is assessed for income tax, PRSI and the Universal Social Charge. We quote 4 companies for this protection and can give total independent advice on same.