What You Need to Know about Income Protection Insurance in Ireland

Income Protection Ireland offers a regular tax-free monthly income in the event of any unforeseen illness or accident that prevents you from working.

What is Income Protection Insurance?

Most people know what health insurance is and how it works, but fewer people are aware of the existence of income protection insurance. Basically, income protection insurance is a type of insurance that pays out a regular tax-free monthly income in the event of any unforeseen illness or accident that prevents you from working. It is also known as permanent health insurance or long-term disability (LTD) cover and is different from short-term disability cover which only covers you for 6 months or less.

Nowadays, many employers offer employee benefits packages which include some form of income protection cover as part of their overall package. However, if your employer does not provide this benefit then there are other options available to purchase such as an individual policy directly from an insurer like Allianz Life Assurance Ireland Limited.

Why is Income Protection Insurance important?

Income protection insurance is an insurance policy you can take out to provide a regular tax-free monthly income should you become unable to work due to illness or injury.

It is an important type of insurance that can provide financial security if you are ever forced out of work due to illness or injury.

Income protection policies are available for people who are self-employed, or who are employed on a contract basis.

Who needs Income Protection Insurance?

  • Anyone who earns an income and has a family to support.
  • If you are self-employed, you should consider income protection insurance.
  • If you are a stay-at-home parent, we recommend that you consider income protection as part of your financial planning.

How does Income Protection Insurance work?

How does Income Protection Insurance work?

The best way to describe how income protection insurance works is by looking at an example. Let’s say you’re a reasonably healthy person who recently got a job in the marketing industry. Your new employer offers you an income protection insurance policy as part of your benefits package, which means that if something were to happen that prevented you from working for a prolonged period of time (such as illness or accident), your income would be replaced up until the end of the duration of your contract with them. This means that even if they fired you without cause, they’d still have to pay out on your income protection policy until it expired—and in some cases beyond this point!

In order for an illness or accident clause to be activated though, certain conditions must apply:

  • You must have been employed as per normal (or should have been) prior to being unable to work due to illness/injury;
  • You must not have had any previous claims paid out under this type of policy before;

How much will Income Protection Insurance cost?

The cost of your insurance will depend on a number of factors such as your age, health and lifestyle. The price you pay for income protection insurance also depends on the level of cover that you choose. For example, some policies will cover short-term absences from work whereas others will cover long-term absences.

Choosing the right level of cover is essential so that it protects against all possible contingencies in life while ensuring that the premium is reasonable enough to meet your budget needs.

When should I take out an Income Protection Policy?

An Income Protection Insurance policy can help to make sure that you can continue to pay your bills, even if you cannot work. Many people do not make enough money in one go to insure their whole income and must take out other policies such as life insurance or critical illness cover in addition to an income protection plan. However, we think it is important to have some sort of financial safety net in place so that if something happens to you or one of your dependents, they will be able to keep their head above water while they are recovering. This means paying off any loans or credit cards which may be due at the time of injury or illness along with any rent or mortgage payments on your home.

Income Protection Insurance can be taken out by anyone who earns an income either directly from employment or self-employment (including directors and partners), whether it’s full-time/part-time/casual; salaried/hourly; temporary/permanent; part-year only; holiday relief etc., including those working from home via flexible contracts such as zero hour contracts (eek!). If this sounds like it might apply then read our section below about how much income protection insurance should cost for more details about what factors influence the price of this type of policy

income protection insurance offers a regular tax-free monthly income in the event of any unforeseen illness or accident that prevents you from working.

Income Protection Ireland offers a regular tax-free monthly income in the event of any unforeseen illness or accident that prevents you from working.

Income protection insurance is an important financial product and should be purchased by anyone who has an income from employment, whether full-time, part-time or self-employed. It’s also worth taking out if your earnings are volatile because it will provide protection in the event that your income drops below a certain level due to illness or injury.

The cost of taking out an income protection policy depends on many factors such as:

  • How much cover you need for your monthly benefit?
  • What type of policy do you want? A term plan which lasts a specific number of years or lifetime cover which pays out until death (or disability)?
  • If you are over 35 years old when applying, how long do they want to make sure they have enough money saved up before they stop paying monthly benefits?


This article has been designed to give you a better understanding of income protection insurance in Ireland. We hope that this information will be useful for anyone who is considering taking out an income protection policy.

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