Depending on your diagnosis and the prognosis or severity of your condition, serious illness insurance will pay a cash lump sum on diagnosis of one of your insurer’s list of serious illnesses.

Insurers vary in the illnesses that they cover, but all will offer protection in the event of the three most common serious illnesses. cancer, heart attack, and stroke.

You may use this lump sum to pay for any medical expenses you may incur, as well as additional expenses that arise as a result of your illness. You may also choose to use the lump sum to pay for any regular outgoings such as mortgage payments, debts, or expenses such as bills etc. while you are ill.

Income protection insurance allows you to insure up to 75% of your income and your income protection premium payments are eligible for income tax relief at your marginal rate of income tax so your premiums may be reduced by up to 40%.

Income protection insurance offers a monthly benefit that replaces your monthly income if you were unable to work because of illness, injury, or disability.

When you purchase an income protection policy, you will choose a proportion of your regular salary to insure, up to 75% of your salary. You will also need to choose a deferred period.

All income protection policies have a deferred period. This is a time period from 4 to 52 weeks which must elapse before you can receive your monthly income protection benefit.

Choosing a longer deferred period will reduce the premium you pay for income protection insurance but it is important to take your personal circumstances into account so that have adequate protection in place.

You may choose a longer deferred period if you have a sick pay entitlement from your employer, for example. In this case, you may choose your income protection benefit to start only after you have received your sick pay entitlement.

If you are self employed or your employer does not offer generous benefits, you may wish to choose a shorter deferred period so that your income protection payment is paid more quickly.

This depends on the term you choose when purchasing your income protection plan. You may choose a term that will offer protection until your mortgage is repaid or until you reach retirement age, for example.

If you are ill or injured and unable to return to work, you could potentially receive income protection payments as a monthly benefit for the remainder of the term of your income protection policy.

If you have a pre-existing illness or health condition this may affect the premium you pay for income protection insurance.

The treatment of pre-existing conditions varies by insurer, but you will generally be asked about your health when purchasing income protection insurance. You may be asked to provide a medical report from your GP, or you may be asked to attend an insurer medical.

If your pre-existing condition means that you are considered a higher risk to a potential income protection insurer, you may be asked to pay a higher premium or face exclusions in cover or be declined for income protection cover.

Do not put off getting a quote for income protection insurance due to pre-existing health issues, a good broker such as Aspect Life can often get you cover and it may be more affordable than you expect.

Insurers classify occupations according to the risk they present of you making a claim on your income protection policy and your job class may affect the premium you pay for cover.

Class 1 occupations are generally office based such as accountant or IT consultant.

Class 2 occupations may involve light risk or driving, for example sales rep or hairdresser.

Class 3 occupations may involve some physical or health risk, for example nurse or mechanic.

Class 4 occupations involve manual labour such as a builder or plumber.

Be aware that there are variations between insurers in how they classify different occupations so it is worth shopping around or using an experienced broker, such as Aspect Life, to find affordable income protection insurance.

Some occupations are deemed too inherently risky to cover such as paramedic or prison officer.

You may be able to purchase a wage protector policy if your job class means that you are unable to purchase full income protection. Aviva provides wage protector insurance.

There are a number of insurers in Ireland who offer income protection insurance.

Income protection offers invaluable financial security and peace of mind. Here are some of its benefits:

Income protection offers invaluable financial protection by providing a monthly benefit if you are unable to work due to illness, disability, or injury. Although it can be difficult to find affordable income protection due to your age, health, or job, Aspect Life can help you.

Aspect Life offers a no fee, no obligation service to find you the best income protection insurance policy for your needs.

We partner with trusted insurers and our experienced advisors look at your options with you and find you affordable cover for you.

Call us today or call in to our office in Naas, and our friendly and approachable staff will offer a personalised service and make getting income protection insurance fast and easy.