Income protection is an effective way to cover yourself should an unforeseen circumstance arise. It can help prevent financial issues should you become sick or injured, leaving you unable to work. 

Although no one expects to suffer such misfortune, it is always worth keeping in mind. Failure to consider this possibility could land you in a stressful situation in the future. 

Thankfully, you will have a number of choices to make when it comes to protecting your finances. 

Many people will immediately consider standard income protection. Although this is an effective type of cover, it is not your only option.

Considering alternatives to standard income protection can help you make the best choice. If you require advice about protecting your income, speak to our team today.

Alternatives to Standard Income Protection

What is standard income protection?

Standard income protection is the best known form of protection and a perfectly viable option for many. This type of protection will pay out a benefit to the policy holder should they not be able to perform their professional duties due to an illness or injury. 

Policies of standard income protection are usually four, 13, 26, or 52 weeks. As the policy holder, you will get to choose the duration of your policy, known as a ‘deferred period’. 

You will decide how much of your income is covered up to 75%, as well as the length of your cover. Both of these aspects will determine the premium you pay. 

If you have any questions regarding standard income protection, or feel it may be the best option for you, contact us today.

Alternatives to standard income protection

There are also alternatives to standard income protection for you to consider. When deciding what income protection is best for you and your situation, make sure to keep in mind the following:

  • Bill cover
  • Wage protector
  • Serious illness cover

Bill cover

Bill cover is a form of income protection that will allow you to maintain payment of bills, such as mortgages and household bills. This can help to ensure financial stability when you cannot work due to illness or injury. 

You can get bill cover for up to 40 years, or up until the age of 68. Policy holders can cover up to €2,000 per month, or 40% of their monthly income. 

You can choose a deferred period of 8, 13, 26, or 52 weeks for bill cover. 

Self-employed persons are eligible for bill cover. However, you cannot claim bill cover if you have been unemployed for more than one month. 

Restrictions may apply to your bill cover if you are living abroad at the time of your claim.

Wage protector

If your occupation falls into category 3 or 4 for income protection, then you are eligible for a wage protector. 

Income protection categories are based on the risk involved in your job. For example, a low risk job such as an account is in category 1, while nurses and plumbers are in categories 3 and 4 respectively. 

This form of cover can pay out an income for a period of 24 months or longer if you are not able to work for a lengthy period of time. 

Official medical tests must be conducted in order to determine that you are unfit for work.

Wage protector

Serious illness cover

Serious illness insurance can come as part of your life insurance policy and covers you in the event of a serious illness. 

When you claim for serious illness protection you will receive a tax free lump sum payment. 

You will be covered for any costs associated with your illness and recovery.

Serious illness cover

How to decide what coverage is best for you

There are a number of aspects you should consider when choosing your income protection. For example, if your bills are a primary financial concern, then bill cover might be the best policy for you.

However, if you have a high-risk job, then a wage protector is definitely worth considering. 

If neither of these aspects are applicable to you, or you have other concerns to consider, then you may want to invest in standard income protection. 

For further advice, or opinions based on your situation, get in contact with us.

Contact us today

Choosing the right form of income protection is important. This is something that everyone should consider as there is never any telling when an injury or illness may occur. 

You cannot take out an income protection policy when you are already ill or injured, meaning it is important to act before such an event occurs. 

At Insure Your Income, you can contact our team as well as using our calculator, meaning you can get a good understanding of income cover. 

Eligible For Income Protection Insurance?

Some jobs qualify, others don’t. Find out if your job can be insured and get a free quote.