Income protection, also known as long-term disability or life insurance, is a type of insurance policy that pays out when you are unable to work due to illness or injury.
Income Protection can be taken out on its own or in addition to your other policies (i.e. Life Cover) – but at least one should be taken out if you have dependents who rely on your income.
What is an Income Protection policy?
Income protection is a type of insurance that pays you a monthly income while you are unable to work because of illness or injury. It can be taken out by an individual or family, and it covers the same situations as your health insurance would cover: if you get sick or hurt and cannot work for more than 28 days in any 12-month period, then your income protection policy will start paying out benefits.
Income Protection policies can also include other benefits such as lump sum payments for specific illnesses like cancer or heart disease; providing home help services such as cleaning and laundry services; paying off debt interest rates (like credit cards); providing additional funds for holidays; covering childcare costs during treatment periods – these extra benefits vary from insurer to insurer so make sure to check before buying!
Different types of income protection policies
There are different types of income protection policies, so it’s important to understand the features and benefits before you buy.
- Flexible: These policies allow you to choose how much cover you need each week (the highest amount is usually 75% of your salary). The more flexibility you want, the higher your premium will be. This type of policy also allows for a range of other options such as lump sum payments, partial payments and reduced working hours.
- Restrictive: These policies have strict criteria for when they can be claimed on; if your illness or injury does not meet these criteria then there will be no payout from this type of policy unless an exception can be made by getting approval from an assessor or doctor who has been specially trained in this area (and paid extra for their services).
Benefits of income protection
Income protection is not a cure for ill health or injury, but it can help you keep your mortgage repayments up to date and pay for home care. If you have an illness or injury that prevents you from working, income protection can also protect your lifestyle by ensuring that basic living expenses are covered.
Income protection policies offer a range of benefits depending on the policyholder’s needs and budget:
How to claim on income protection policy in Ireland
If you are sick and on sick leave, the first thing to do is contact your employer. They will then let the insurer know that you are off work and what type of illness it is. The insurer will then decide if they will pay out or not based on their policy terms and conditions.
If you are not working when claiming on an income protection policy in Ireland, then it’s best not to contact them until after getting advice from one of our advisers at FirstChoice Insurance Services Ireland Ltd., who can help explain how much compensation would be payable under different circumstances such as whether there was any pre-existing condition that prevented taking out this type of policy (i.e., epilepsy).
End of year bonus – Tax relief on income protection premiums paid for 2023.
Is income protection tax deductible? Tax relief on income protection premiums paid for 20263
If you have an income protection policy and paid the insurance premiums in 2019, you may be entitled to claim tax relief on those payments. To do so, simply submit a claim form with your Tax Return (P60) when filing your annual return. The amount of tax relief will depend on your individual circumstances and can vary from year to year depending on changes in income or family status. You must also continue paying the required monthly premium throughout the duration of any claim resulting from an illness or injury sustained while covered by this policy.
Income Protection – What you need to know about your employer’s legal obligations.
Your employer’s legal obligations depend on whether you are self-employed, a contractor or an employee.
If you are self-employed and have Income Protection Insurance through your own private health insurance policy, then your employer has no obligation to pay any of the premiums. You will need to pay them yourself and claim from your insurer if needed.
If however, you are employed under a contract of service (a permanent full time role) then the company must pay half of all medical expenses incurred by employees at work which arise out of injury sustained while performing their duties or during travel between home and work; however this only applies when there is no other health insurance available from another source such as via one’s parents’ healthcare plan or spouse’s employment benefits package).
Contractors (part-time workers) do not have any entitlement under Irish law unless they have taken out their own private health insurance policy – in which case they should check if there is any cover provided by their contractor company first before making claims against this policy.”
Claiming on your income protection policy can be stressful but knowing what to do and having a good understanding of the process can help ease the stress.
Knowing what to do and having a good understanding of the process can help ease the stress.
- Know what you are entitled to: Check your policy document for details about what benefits are covered, when they kick in, how long they’ll last and so on. It should also tell you how much it will cost if you make a claim under that policy. If there is anything unclear or missing from it then contact your provider immediately as this may be grounds for rejecting a claim later on (see below).
- Be prepared: Keep all receipts related to any medical treatment received while working abroad (for example doctors bills) until after any potential claim has been settled by your insurer; otherwise these might not be accepted as proof of injury by insurers who want more evidence before making payments out.* Understand the legal obligations of employers under Irish law: If an employer fails its duty towards injured workers then those individuals should seek advice from their trade union representative or solicitor before proceeding with any action against them.* Take time off work whenever possible during periods where symptoms flare up again even though paying out sick leave isn’t always possible because some employers require employees return full time within three months from diagnosis even though many specialists recommend 6 months minimum recovery period before returning full time duties which could mean losing out financially too!
Conclusion
Now that you know the basics of how to claim on an income protection policy in Ireland, it’s time to get started!
If you have any questions or concerns about your employer’s legal obligations when it comes to paying for premiums, please feel free to contact us at any time. We’d love nothing more than to help make sure your rights are protected.
