Work hard, play hard
You work hard to pay for an unending list of financial commitments; mortgage, property tax, car, utilities and food and after that maybe you invest in your future and live a lifestyle that you have grown accustomed to… but have you thought about how you would manage if you fell ill? You probably don’t think twice about insuring your home, car or healthcare but what about your income?… the one thing that pays for everything.
It could happen to you…
It is easy to think “it won’t happen to me”, but the following statistics might surprise you.
One in three people in Ireland will develop cancer during their lifetime according to The Irish Cancer Society, June 2013.
An estimated 30,000 people are living in the community with disabilities as a result of a stroke, as per The Irish Heart Foundation, June 2013.
With medical advances, people are more likely to survive serious illnesses but this means that more people are likely to take prolonged periods off work for treatment and recovery. This could have a huge impact on their income. Even for those who have savings in the bank, a long term illness or period of time out of work could mean real financial hardship if there was no cover in place.
Your solution to this is Income Protection. With an Income Protection policy you can provide you and your family with the peace of mind that you have the protection of a regular income during difficult times. Income protection policy can be tailored to your individual needs and can provide you with up to 75% of your current salary, less the State Illness Benefit if applicable, currently €9,776 p.a.
How it works
Having selected an appropriate level of cover, you will pay a monthly premium to a Life Assurance Company, subject to their terms and conditions, to cover a specified level of cover that suits your personal needs. While the cover is in place, if you are injured or become ill, an income benefit could become payable after a deferred period (e.g. 13, 26 or 52 weeks). The deferred period is the length of time between when the illness is first diagnosed and when you start receiving an income benefit. This benefit will continue until you are able to return to work or your normal retirement age (e.g. Age 65), whichever happens first.
Tax relief is available on income protection premiums. Personal Tax relief is available of up to 40% on premiums. If you are a Company Director, it may be tax efficient to pay for income protection through your business. Payment of a benefit is subject to the normal tax regime that applies to you.
When thinking about the cost of a plan like this, the best thing to ask yourself is, “Can I afford not to have this cover? What would I do if I was out of work and had to do without my income? Could I afford all of life’s essentials?” if the reality is uncertain, worrying about it is not a solution but putting the right Income Protection cover in place is.
Why not talk to Milestone Advisory about putting the right financial protection in place for you.
This article does not constitute financial advice and is provided for information purposes only.
Here to help you navigate your way to financial security.
The Milestone Advisory team are qualified financial services consultants. We specialise in helping professionals in the construction sector and related industries. Our team will work with you to review your finances, explaining your options in clear English.
No jargon – just the facts.
For further information please contact Susan O’Mara via email or phone: (01) 406 8020. Milestone Advisory DAC t/a Milestone Advisory is regulated by the Central Bank of Ireland.
