Have an Income Protection Plan to Protect Yourself

It is not just your home or your vehicle that you needtheir employees with paid leave while they are sick;
to insure, you also need to insure yourself. While mosthowever most of these sick pay schemes are only
people insure themselves in the event of death, youshort term and are not a long term solution.
should be more concerned about insuring yourselfIn my experience six months is about the longest six
while you are alive. An income protection plan willpay schemes available while on the other hand health
enable you to insure your income against illness orinsurance can protect you for much longer periods.
injury, paying a regular monthly income in the eventMany companies do not pay sick leave and do not
that you cannot work. You need to have a regularhave provisions for this - so what do you then. Either
income to sustain yourself and if something goesway an income protection plan will provide you with an
wrong with you and you are not in a position to workincome when no one else will. You can choose the
your health insurance policy will protect you.level of health insurance cover you need, and if your
It is difficult enough to survive on your current salary -employer does provide 6 months of sick cover, then
now imagine how much more difficult it would beyou can choose your income protection cover to kick
without a salary coming in at all! An income protectionin after this.
plan will insure you against these financial difficultiesThere is one other element that you may be looking to
providing 75% of your current income in the event yourely on and that is unemployment benefit - and while
cannot work due to illness or injury. 1 in 4 people willthis is €196 per week - this will usually fall well short
suffer a serious illness some time in their life - so it isof your current income. If you are self employed you
wise to insure your income against serious illness.may not be entitled to unemployment benefit - so
Income protection plan premiums are tax deductible,where does that leave you if you cannot work due to
which helps reduce costs yet provide the incomeillness or injury. An income protection plan will cover
protection cover you require.employees as well as the self employed.
Under an Income protection plan you can insure up toWhile you are looking around for a health insurance
75% of your income against illness or injury, so if youget quotes from various different insurance companies
are unable to work, 75% of what you earn will be paidand compare them. Even better get independent
to you on a monthly basis from your income protectionadvice from a financial broker who can deal with
plan. This will assist you in covering your usual monthlymultiple financial institutions. Always remember if there
expenses such as mortgage payments, clothing,is a significant difference in price make sure that you
school fees, food etc. Many companies do providecomparing like with like.