Is your Income insured? How would you manage on €10,500 per year?
Income protection example
John is an accountant and recently bought a new house and has decided to take out an income protection policy, so that in the event of a long term illness, he will still be able to meet his mortgage repayments.
In the event of such an illness his employer will pay John full pay for 3 months and half pay, for the following three months
After this, the employer will not pay income to John and he need to rely on his state disability benefit of €10,500 per year.
John is age 30 - Income protection required €50,000 to age 65.
Income protection cost per month net of tax @40% is €36.24 per month.
This is based on a deferral period is 26 weeks. This means the insurance kicks in after a period of 26 weeks. You can choose shorter or longer deferral periods.
The real purpose of income protection insurance is to look after you, if you are unable to work in the long term.
Assuming John has a valid claim, the insurance Company will pay out €50,000 per year as to John, taking account of the deferral period, until such time as John can return to work or if his illness continues, until retirement age.
Talk to our Income protection specialist Mark Banahan on 01 8327250