WHAT IS INCOME INSURANCE?
Income Insurance is the product name for our income protection plan. It provides a replacement income, also called incapacity benefit, if you cannot work as a result of an illness or injury.
After a certain period, known as the deferred period, you receive the incapacity benefit to replace some of your income while you are off work.
HOW INCOME INSURANCE WORKS
We have designed Income Insurance to be as flexible as possible, and its aim is to suit your income protection needs. Below are some points to help you decide if this cover is right for you
• You decide whether you can afford to make guaranteed or reviewable regular payments and what is best for you.
• You decide how much cover you need based on your current earnings, the deferred period you want (either 13, 26 or 52 weeks), how long you need the benefit to be paid for, and how long you want the cover for.
• You make regular payments to keep the cover in force.
• We provide cover until your plan ends, no matter how many claims you make.
• You must tell us when an illness or an injury stops you working.
• We pay you a monthly income from the end of your chosen deferred period for as long as
you are eligible (see below regards deferred periods).
• If you are in hospital for more than seven days in a row during the deferred period,
you may be able to receive hospitalisation benefit.
When you take out this plan, you choose a deferred period of 13, 26 or 52 weeks. This is the continuous amount of time you need to be off work before we will pay the incapacity benefit.
You must be totally unable to carry out the main duties of your normal job for this cover and you must not be doing any other work. An injury or illness must be the reason why you cannot work
HOW MUCH COVER DO I NEED?
We will help you decide how much cover you need. That cover should reftect your income. The benefit you receive must be set at a level which makes you no better off financially. This is so that you have an incentive to return to work.
In general, the most cover you can have at any one time (including that provided under other income protection plans and continuing income from your job or pension) is the lesser of the following:
• €250,000 a year; or
• 75% of your total yearly earnings; less
– any continuing income from work or any other source (not including investment income);
– any pension payments;
– any state disability or other benefits (except benefits for children); and
– any regular payments from any other income-protection plan or similar insurance.
You should review your cover regularly to make sure it continues to meet your needs. Your Financial Adviser can help you with this