There’s probably nothing worse than prematurely hitting your assets to support your basic living costs because you cannot work. It won’t be because of a flu or stomach virus but something much more serious such as medical events that prevent you from getting up in the morning and going out to work for a very long time, if ever again. Nobody expects serious ill-health but being unable to work, yet still costing money, is a crisis situation.
Thankfully there’s a solution and the cost of it is a full write-off against Income Tax. This kind of cover is as important to the self-employed, the professions and owners of SMEs as third party cover is to a motorist – you’d be crazy to be driving around without it, especially if you qualify on grounds of reasonable health and occupation.
Stress and back problems are the most common reasons people in Ireland find themselves in this crisis situation. Both require subjective judgement calls before claims are settled. This is why Income Replacement Protection ought to be selected on best quality and never on the cheapest quote.
We look at how you can replace up to 75% of your earned income all the way to retirement and have the income escalate each year to fight inflation. Although the cover can run into millions of Euros to age 65, the monthly cost after tax relief is quite affordable if done properly and on time. This cover protects your balance sheet assets from premature sale or erosion, and unlike any other personal insurance, the cost is a full income tax write-off.
Examples of questions we ask
What is your earned income and is there any work-related scheme in place that insures most of it if you get sick long term?
How long would your assets like before exhaustion to maintain basic lifestyle costs including medical expenses if you could no longer go out to work?
What Income Replacement insurance is currently available for you, from whom and at what cost, to fit your budget?
What insurers to avoid because of a corporate culture that looks for ways out of paying out claims and which ones have an honourable record over the decades?
The ideal cover can kick in as early as a few weeks of illness and provided you cannot follow your own occupation, but are there any events in your medical history that might be problematic in getting past underwriting?
Given your budget, what Income Replacement cover best fits you taking into consideration your short-term savings which could plug the gap until the long-term replacement income arrives?
When you’re really sick and unable to work long term, everything changes. It is one of those events in life when proper insurance is paramount. Odd as it may sound, tax relievable Income Replacement cover is for us, far more important than life insurance - for example in securing assets from premature erosion and stabilising a family after the shock ill-health of a main earner.
Over three decades, we have been making this point to our clients and we’re glad to say that they’ve listened. As a financial practice, we’ve placed millions of Income Replacement cover into the market and been on hand to help all our clients who’ve had claims, to have them accepted.
Cheapest quote for Income Replacement cover leads to cheapest mindset, a rigidity in paying out claims most of which require subjective judgement calls on medical reports, especially when stress or pain is involved. Not every insurance company is the same by a long shot. We focus on claims history and corporate culture first and foremost, because when a claim happens the crisis is acute. We engage with all product providers open to applications in Ireland and compare and contrast cover and costs to get the best fit.