Finance Spirit

The Income insurance policy is a protection policy that will pay out a regular cash payment, replacing part of your lost income if you have a long-term illness or disability and you are unable to work. Income Protection is also sometimes referred to as Permanent Health Insurance, but it must be stressed that Income Protection is not the same as a private health-care plan.

If you become seriously ill you may be entitled to social welfare payments, sick pay or a level of income under your employer’s pension plan. If income from these sources is sufficient for your needs then you may not need extra cover from an income insurance policy. However, you may need this cover if you are self-employed, you would get little or no sick pay from your employer or you have no ill-health pension protection.

How Much Would I receive from my Protection Policy? You get a proportion of your earnings 75%, less any other social welfare payments you receive when you are out of work (such as sick pay or social welfare disability benefit). This is not a bad idea to let your family understand that they need not to worry for the future since you would have done some great work like insurance for them.

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