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Income protection is it worth it

  • 21-01-2022 6:23pm
    Registered Users Posts: 1,422 ✭✭✭ kerryjack

    Myself and herself both work 35 k a year each early 50s, never had income protection, OH looking in to it at minute, 80 quid a month for 15 k a year and social welfare will top up rest according to sales person. We don't know much about it and we are paying life insurance and health insurance already and a heap other direct debits. Like I am thinking we pay a lot of tax already and god forbid something do happen one of us we could survive grand on one wage and the sick pay and we wouldn't be paying as much tax as the other person would have tax credits.


  • Registered Users Posts: 3,622 ✭✭✭ dotsman

    Whether it is worth it depends on a variety of specific personal factors. Firstly, does your or your wife's employer provide income protection? What are their sick leave policies (especially in relation to long-term sick leave). Some employers do as apart of a sick leave policy or pension offering. Next, you need to look at what life savings you have that you could fall back on. Also, how is your pension (would early retirement be a fall-back option)? Also, do you ahve life insurance or assurance policies? Similarly, what debts or obligations, if any, do you have or are likely to have in the coming years? Other things to look at are job stability and labour market etc.

    Once you have figured out you personal financial circumstances, the next thing to look at is what precisely is and is not covered by the policy. Are there still gaps, or is it offering cover for events you don't see as applicable to you (but would still be paying for)?

    But, ultimately, it often comes down to risk appetite. The very same product, with the very same circumstances can be considered bad value for the optimist, but great value for the pessimist (even if only paying for peace of mind).

  • Registered Users Posts: 11,578 ✭✭✭✭ Geuze

    I pay 0.86% of gross salary.

    I get tax relief on that, so I pay 0.52% after tax relief.

  • Registered Users Posts: 29,072 ✭✭✭✭ Hotblack Desiato

    That presumes the partner who isn't sick can continue working and doesn't have to act as (or employ) a carer.

    The likes of Alcohol Action Ireland won't be happy until we all have ration cards. Maybe not even then.

  • Moderators, Business & Finance Moderators Posts: 17,223 Mod ✭✭✭✭ Henry Ford III

    Might be an idea to move this to the banking and insurance forum.