How Much Income Protection Do You Need?
It is revenue approved to protect up to 75% of your regular income.
Sometimes the questions people ask are; is the maximum cover necessary – is it affordable – maybe its enough to cover the most important bills?
The answer is that Income Protection plans can be tailored to pay all income or the most important bills.
All decisions and calculations are helped by the fact that revenue also approve tax relief on your premium so the actual net cost is reduced up front.
*Example of Cost/Benefit Analysis
1 Mortgage Payment €800.
2 Protection Cost € 00 before tax relief.
3 Protection Cost € 00 after tax relief.
This means that the mortgage is paid if income is lost due to accident or illness.
It is possible to add in other bills and then calculate the net premium on a gradual basis with tax relief.
Income Protection Set Up…
1 Qualification is by occupation and health.
2 Application and Underwriting is next.
3 Policy Issue and on cover when terms are agreed.
When it comes to financial planning income protection is very important because it helps to support all other financial plans and commitments.