Who’ll pay the mortgage / rent and bills if we can’t work?
Most, if not all of us rely on a regular income to pay the bills, it’s vital. Vital too are our mobile phones. If we lose or break our phone, we’re out seeking the replacement within hours. Hundreds of thousands of people in Ireland have protection for their phone, to make sure replacing it doesn’t cost a fortune.
When it comes to our Incomes however, we’re not as quick to protect this vital asset. Without it, lots of things could stop, including payment of that vital mobile phone package!!
Unexpected Events
If you were out of work due to a disability or injury as a result of an accident or a prolonged illness, how would you pay the rent / mortgage, childcare, bills etc.?
Social Welfare may cover some costs, if you’re entitled to this (self employed people aren’t for example), but you’re likely to still see a significant gap in your income. Will your employer continue to pay you if you’re off for a prolonged period of time?
Continuing Costs Regardless
While some supports may be available to you, consider whether your household could cover all the potential costs of the future without your income. Here are just a couple of examples, but you’ll know lots, lots more:
Mortgage / Rental Costs
Car replacements, house maintenance, childcare costs
Additional costs as a result of your disability / illness
Income protection cover is a Tax efficient product, in that you receive tax relief at your marginal rate of tax on the premiums you pay. So Income protection may not be as expensive as you think it is.
Income Protection
Income Protection cover may result in regular payments up to 75% of your income (including state benefits) in the event that the insured person becomes unable to work due to disability, injury or illness.
Tax relief at your higher rate of tax is available on the cost of income protection making this a very attractive safety net, particularly for the self employed.
There are some rules that can govern how long you need to be off work before payments kick in, and how long payments will last, but these can be tailored to your needs.
Start the Conversation
Planning for the unexpected to ensure you and your family are financially comfortable is what we do. The first step is a quick conversation to understand your circumstances and what you’d like for you or your family if something unexpected happened.
Arrange a quick conversation at a time that suits below.