What is Income Insurance?
Income Insurance provides you with the safety net of a replacement income if you end up in the unfortunate position of not being able to work as a result of illness or injury. You can take out income insurance if you are in full-time employment or are self-employed and earn an income. Available as either a personal or company plan.
A replacement income is payable after the chosen deferred period if you are unable to work as a result of illness or injury. No replacement income is paid if you become unemployed.
In addition to the expected plan benefits, Irish Life’s Income Insurance can also provide you with a range of additional benefits:
INCOME INSURANCE TOP-UP
On each 3rd anniversary, up to the 15th anniversary, you have the option to top- up your income insurance benefit by a maximum of 20% of the original cover amount without any additional medical questions or evidence of occupation, residence or pastimes.
HOSPITALISATION BENEFIT
• We will pay hospitalisation benefit if during a period of incapacity, you are in hospital for more than seven days during the deferred period.
• Benefit is paid at 1/365th of the year amount.
• This is only available on a Personal Income Protection Plan.
PERSONAL TAX RELIEF
Under current tax law (April 2015), personal payments made to an income insurance plan are eligible for tax relief at your marginal rate of income tax. The maximum amount of payments that can be claimed for relief is 10% of your net relevant earnings. PRSI relief is not available.
COMPANY TAX RELIEF
The contributions paid by your customer’s company/ employer are normally tax deductible.
PENSION PAYMENT PROTECTION
If you are making regular payments into an Irish Life pension plan, you can choose to use the Income Insurance plan to protect those payments. You choose the amount of pension payment protection at the start of the plan, and if you cannot work because of an illness or injury, we will pay that amount directly into your pension plan each month.
The max amount of pension payment protection is dependant on your age, see table below:
Your Age | % Net Relevant Earnings |
Less than 30 | 15% |
30-39 | 20% |
40-49 | 25% |
50-54 | 30% |
55-59 | 35% |
60+ | 40% |
This benefit is paid on top of your incapacity benefit. It is available for company provided income insurance plans only.
OPTIONAL BENEFITS
Dolmen’s Income Insurance can also provide you with the following optional benefits:
- Between commencement of the plan and the second anniversary, you can opt for automatic indexation of your benefit cover.
- If this option is chosen, the cover will automatically increase by the higher of 5% or the Consumer Price Index(CPI) without any further medical evidence.
- The additional premium will be calculated based on the level of increased cover and your age at the time of the increase.
- You have the option of choosing to have indexation applied to the incapacity benefit when it is in payment.
- If chosen the benefit in payment will increase by the lower of 5% and CPI.
- There is an extra cost for this benefit.
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