While having Life Assurance for your Mortgage and for personal reasons is extremely important to protect your family and loved ones in the case of the unexpected, Income Protection should be given the same priority when individuals are considering their financial security.
If you were not able to work due to illness or injury you would only receive circa €10k per annum from the state (this drops to zero if you are self employed).
In the average family monthly costs such as mortgage repayments, food, pension payments, school costs, car repayments, car and house insurance would struggle to be met from such a low annum state income. In certain countries it is a requirement when taking out a mortgage with certain lenders to have Income Protection and you can see why.
Income Protection (also known as PHI – Permenant Health Insurance) benefits from tax relief at your marginal (ie higher rate). For as little as circa €25 per month a 30 year old non smoker can protect €40k of their income (assumes tax relief at 49%, deferred period of 26 weeks, Occupation Class 1 – eg Accountant).
SmartQuotes.ie offer Income Protection real time quotes. Why not go online or call us on 01 6853813 to find out more?