Protecting your income protects a lot more

It must be earned income so you cannot include rental income or dividends for example.

The maximum that you can cover yourself for is 75% of your income less any social welfare entitlements(currently circa €10,000 per annum). Note that State Illness Benefit is not paid to self-employed people.

The ‘deferred period’ is the time between when you are injured and when the policy will commence payment. You must be unable to work for a minimum of the deferred period before the benefit will become payable.

A reviewable plan means that the premium is fixed only for a certain initial period. This means that the premium can be reviewed regularly by the provider after the plan has been put in place. The terms for implementing the review will be determined by the terms and conditions of the plan.

A guaranteed plan means that the premium payable will be guaranteed not to change throughout the term of the plan.

Typically most life companies have an automatic benefit on these type of policies which allows you to increase the cover on your policy by 20% of the original cover every three years without having to provide evidence of health. In addition you can also select the Indexation Option on your policy.

There is tax relief available but it depends whether the policy has been set up by an individual or a company.

Serious illness cover pays a lump sum to you if you are diagnosed with any of the specified illnesses named in the plan. This lump sum can be used to pay off large loans, pay medical bills etc.

Income Protection provides you with a replacement income in the event that you are unable to work due to any accident or illness. With this policy you are covered until you can return to work or until retirement age if you unable to return to work.