28th November 2013


An income protection insurance policy provides an income if you are unable to work after an accident or illness. Like any insurance policy here are a number of factors that dictate the cost of this type of cover.

The income you are covering
The income you would like to receive will affect the premium payable. this doesn't necessarily mean your current income but it will likely be related. If you want to have an income of €2500 during your covered period then this will cost more than if the income were only €1000. Make sure the income you cover is enough for your needs.

Your Age
Age is only really a factor because as a rule older people tend to have more chance of being ill than younger people. So a policy taken out when you are in your 30s will likely be cheaper than one taken out in your 50s.

Your Health
How healthy you are has an effect on your premium. If you have a history of poor health it may even prevent you from getting income protection at all. this is assessed by questionnaire by your Insurance company when you take out the policy, there may even be a medical. So the healthier you are the more likely you are to get cover and the less that cover is likely to cost you.

Length of time the cover will be in place
How long do you want the policy to run? The longer it has to run the more it is likely to cost. So if you want the policy to finish when you retire at 65 then it will cost more than if you manage to retire at 50. 

Period before payout
How long you are willing to wait before the policy starts to pay out also affects the premium you pay. So if you were willing to wait 6 months for your payments to start then your cover will be cheaper than if you wanted payments to start in 4 weeks. 

Some jobs carry more risk of injury than others. If you're a bricklayer working on a construction site your risk of sustaining an injury is greater than if you work in an office of an insurance company. So this increased risk will mean a bricklayers premium will be higher.

I hope this gives you a bit more information on what affects your premium. If you want to talk to Low.ie about your Income Protection needs then start the quote process today.