Income Protection

We all know how important it is to ensure that we are financially protected against the loss or injury of those people and things that we cherish most. After all, we are obliged by law to have car insurance and indeed banks will only lend you money to buy a house if you have sufficient life cover in place. Most people then go further and protect their home and contents against damage or loss with house insurance, and also have additional life assurance to ensure their family is financially looked after, in the event of an early death.

All of these protections are kept in force by paying insurance premiums, which in turn are paid from the income that you earn. Your income also funds most of your day to day expenses and your lifestyle. However what would happen if you were unable to earn an income because of injury or ill health? Income protection insurance is all about taking care of your most valuable asset — your income.

How does it work?

If you’re unable to work because you’re sick or injured, income protection is there to provide you with a replacement income until you either get better and return to work or until retirement age if you don’t. The cover will commence after a “deferred period” which is like a waiting period that commences at the moment you are unable to work. After this period, the insurer pays your replacement income to you. This will be any amount up to 75% of your salary.

What you need to consider

First of all, you need to decide the right level of cover for you. This depends on a number of factors, a very important one being what cover if any, your employer will provide in the event of you being unable to work. There are many other factors to consider such as your occupation, your income, your state of health and when you would need your replacement cover to begin.

This cover also attracts income tax relief at your marginal rate of tax, which helps hugely in reducing the cost of this cover to you.

Deciding the right level and type of cover for you, and then finding the best policy is difficult. It is always best to talk to an independent financial adviser who will help you to identify the right cover for your particular circumstances and will then ensure that you get this cover at the lowest premium available to you.

At Lyons Financial Services we are experts in income protection insurance. We advise significant numbers of clients in both the public and private sectors on how best to protect their income in the event of illness or injury.

Don’t wait until it is too late!

To find the best income protection quote for you and your family, simply call our helpline on 01 801 5808 or click here to Ask our Experts a question.

FINANCIAL
SERVICES TESTIMONIALS

Just a short note to thank you all for the fantastic, efficient and humane service I received from yourselves. To your staff who were so nice and also very, very efficient and kept me posted all the time while my claim was pending which was only 6 weeks in all. I was dealt with so promptly and treated so very nicely on the phone; it helped me over what was a very difficult part of my life.

Many thanks for all your assistance in dealing with my claim under the Income Protection Scheme for period Jan 08 to Nov 08. For your efficiency and keeping in touch with me throughout and for all your work with the insurance company.

I have been on sick leave since July 2007 and as a member of the Income Protection Scheme, I have had numerous dealing with your office in relation to my claim. I would like to thank the staff for their assistance and determination in resolving this claim on my behalf. A job well done.