Personal Income Protection provides you with an income if you are unable to work due to illness or injury. It can help protect your lifestyle by limiting the financial consequences of suffering an illness or injury which prevents you from working. Payments continue either until you are well enough to return to work or your policy ends. There is no restriction on what you use the Income Protection benefit for. It’s there to support you financially, however you need it. Under current tax law (June 2020) the premiums you pay may be eligible for Tax Relief.
This can reduce the cost of your cover by up to 40%, if you pay income tax at the higher rate. The gross premium is payable to the insurance company and you must claim the tax relief from Revenue. The maximum amount on which tax relief can be claimed is limited to 10% of your total income for the year of assessment. Revenue limits, terms and conditions apply.
How important is your income? The income you earn determines the life you lead. It’s easy to think of all the ways you use your income; it pays for the day-to-day living expenses and bills that allow you to create a home and provide for your family. It also helps pay for special occasions that create lasting memories. If it suddenly stopped, your life would change drastically.