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What You Need To Know About Income Protection Insurance in Ireland



Irish income protection insurance could be the perfect option for individuals who are concerned with the long-term effects of a disability or illness. This is a type of insurance that can provide health care coverage to your family members or you in case you end up becoming disabled or unwell, which will result in losing your work and income.


What Are the Differences Between Income Protection Insurance and Life Insurance?


Income protection insurance is a type of life insurance that is designed to provide financial protection for individuals in the event of an unexpected loss of income. Income protection insurance can help to replace wages, pensions, and other lost income, while also providing additional coverage for expenses such as funeral costs and medical bills.


While life insurance policies are typically sold in conjunction with retirement plans or investment products, income protection insurance can be purchased on its own. This makes it a good option for people who may not have access to other types of insurance coverage.


The main difference between income protection insurance and life insurance is the length of coverage. Life insurance policies typically cover a person until death, while income protection insurance covers an individual for a set period of time – usually up to three years. Coverage under an income protection policy may also be renewable if necessary.


Another key difference between these two types of policies is the cost. While life insurance policies typically carry higher premiums than income protection policies, they often offer more comprehensive coverage. In addition, life insurers generally require a higher down payment than insurers who offer income protection coverage.


How Does Income Protection Insurance Work?


Income protection insurance (IPI) is a type of insurance that provides financial protection in the event of a job loss or reduced income. IPI can provide up to €100,000 in coverage, which can be triggered by an involuntary termination from your job, a reduction in hours worked, or a decrease in pay.


IPI policies are typically inexpensive and easy to purchase. The coverage will typically start immediately upon purchase and will continue until you no longer qualify for benefits or until the policy expires. There is no need to file a claim; IPI policies are automatic.


IPI policies are valuable for two reasons: first, they can provide financial stability during a difficult time; and second, they can help you return to your previous level of income as quickly as possible. If you have questions about IPI or would like to purchase coverage, please contact our office.


When Are Income Protection Policies Not Complemented by Life Insurance?


Income protection insurance is designed to provide temporary financial assistance during difficult times, such as when you lose your job or become sick. However, some people mistakenly believe that this type of policy is also a substitute for long-term life insurance. In reality, income protection insurance should never be considered a substitute for life insurance because it has limitations and does not provide the same level of security.


One major limitation of income protection insurance is that it typically provides only a limited amount of financial assistance. For example, most policies will pay out only if you have lost your job due to no fault of your own, have had your health decline significantly, or are facing an extraordinary financial hardship. This means that if you are able to find another job or improve your health soon after becoming unemployed or ill, the benefits from your policy may evaporate.


Another major drawback of income protection policies is that they do not provide the same level of security as life insurance. For example, income protection policies typically do not cover death caused by natural causes like cancer or heart disease, nor do they protect you in case of accidental death (such as motor vehicle accidents). In addition, many income protection policies have exclusions that can limit their coverage even further, such as excluding injuries sustained while performing your regular job.


Therefore, it is important to carefully consider all the options available to you before purchasing an income protection policy. I


Cost of Income Protection Insurance in Ireland


Income protection insurance (IPI) is a type of insurance that helps protect you and your family from unexpected financial losses. IPI can help cover a range of risks, such as unemployment, incapacity, illness, or death.


The cost of IPI in Ireland varies depending on the policy you choose and the coverage you need. The table below provides an overview of some common costs for IPI in Ireland.


Policy Type Annual Premium Monthly Premium

Single Person £85 £14

Single Couple £145 £27

Married Couple £190 £36

Child/Student Up to 25 Years Old €50 €10 Over 25 Years Old €60 €12

Family Circle Policy: 2 Adults & 3 Children Up to 25 Years Old €135 €25 Over 25 Years Old €185 €35




Income protection insurance Ireland is a valuable safety net that can help you protect your income in the event that you become unable to work due to an illness or accident. If you are planning on retiring soon, it is important to consider whether income protection insurance is right for you. There are a number of options available, so be sure to speak with an advisor at one of our offices about what coverage would be best for your specific needs.