Your paycheck does more than just cover your monthly bills—it powers your life. It keeps the lights on, food on the table, fuel in your car, and even supports your family’s future plans. But what happens if that paycheck suddenly stops because of illness or injury? For many people, this is an uncomfortable question they haven’t prepared for. That’s where income protection insurance comes in.
In Ireland, Compare income protection prices in Ireland is becoming increasingly popular as people start to recognise the real risk of long-term absence from work due to health issues. This guide will walk you through why income protection is vital, how it works, and how to find the best policy for your unique situation.
What Is Income Protection?
Income protection insurance is a policy that pays you a regular income if you’re unable to work due to illness or injury. Unlike life insurance or critical illness cover, which pays out a lump sum, income protection provides a monthly payment (usually up to 75% of your salary) until you can return to work or until your retirement age.
Why Is Income Protection So Important?
You might have other forms of protection, like sick pay or savings, but these are often limited or temporary. Here’s why income protection stands out:
- Most employers in Ireland only provide sick pay for a few weeks or months. After that, you’re on your own.
- State Illness Benefit is very limited. As of 2025, it’s just over €220 per week for a qualified person—far from enough to cover average living expenses.
- Serious illness and injury can strike anyone. It’s estimated that 1 in 4 workers in Ireland will be unable to work due to illness for more than six months before they retire.
- Mortgage and household bills don’t pause. Without regular income, your financial obligations keep coming.
How Does Income Protection Work in Ireland?
If you’re medically certified as unfit to work, your income protection policy kicks in after a waiting period, also known as the deferred period. You choose the deferred period when you take out the policy, usually ranging from 4 weeks to 52 weeks. Once that period is over and you’re still unable to return to work, the policy will start paying a regular tax-free income.
Payments continue until:
- You return to work
- You reach retirement age
- The policy expires
- You pass away
You can claim multiple times throughout your working life, as long as the policy is active and you meet the conditions.
Who Can Take Out Income Protection?
Income protection is available to most employed and self-employed individuals in Ireland. However, the nature of your job can affect the cost and availability of cover. Insurance providers typically group jobs into different occupational classes—higher-risk jobs (e.g., tradespeople or manual laborers) may face higher premiums.
It’s available for:
- Employees in both private and public sectors
- Self-employed professionals
- Company directors
Some insurers may not offer policies to those working part-time or on short-term contracts, so it’s important to check eligibility criteria.
Key Features to Look For in a Policy
Not all income protection plans are created equal. Here are the features you should focus on:
- Level of Cover: Most policies cover up to 75% of your gross salary, less any State Illness Benefit.
- Deferred Period: A shorter deferred period means quicker payouts, but usually results in higher premiums.
- Benefit Period: This is how long the insurer will continue to pay you. Ideally, it should last until retirement age.
- Indexation: Choose a policy that increases payouts in line with inflation, to maintain your purchasing power.
- Premium Type: Fixed premiums stay the same, while reviewable ones may increase over time.
- Exclusions: Understand what conditions or scenarios aren’t covered (e.g., pre-existing conditions, mental health exclusions).
- Back-to-Work Support: Some policies include rehabilitation support or partial benefits during phased returns to work.
How Much Does Income Protection Cost?
Premiums vary depending on a number of factors:
- Your age
- Occupation
- Health status
- Smoking status
- Chosen benefit amount
- Deferred period
- Length of cover
Example: A 35-year-old non-smoker working in a desk-based role might pay between €30 and €60 per month for a decent policy, whereas someone in a riskier occupation could pay significantly more.
Tax Relief Advantage:
One major benefit in Ireland is that you can claim tax relief on your income protection premiums at your marginal rate (20% or 40%). This effectively reduces the cost of your policy, making it more affordable.
Best Income Protection Providers in Ireland (2025)
There are several reputable insurers offering income protection in Ireland. Some of the top-rated providers include:
- Aviva – Known for flexible policies and strong customer service.
- Irish Life – Offers competitive pricing and useful add-ons like back-to-work programs.
- Royal London – Excellent for long-term claims and good track record with claims payout.
- Zurich – Offers a wide range of policy options, with clear terms and good customer reviews.
- New Ireland Assurance – Long-standing player with robust financial backing and comprehensive plans.
Each provider has its pros and cons, so it’s worth comparing policies through a qualified financial adviser or an insurance broker.
How to Choose the Right Income Protection Policy
Finding the best policy for you means considering more than just price. Here are steps to help you make the right decision:
- Assess Your Needs: Calculate how much income you’d need to cover essential living expenses.
- Compare Deferred Periods: Match your waiting period with your employer’s sick leave policy and your savings.
- Get Quotes from Multiple Providers: Use a broker to access a range of options.
- Review the Fine Print: Watch out for exclusions, claim limits, and the definition of “unable to work.”
- Check the Financial Strength of the Insurer: You want a provider that will still be around when you need them.
- Look at Claims History: A high claim approval rate is a good indicator of reliability.
Common Myths About Income Protection
1. “I’m young and healthy, I don’t need it.”
Accidents and unexpected illness can strike anyone. In fact, younger people often get better premiums.
2. “I have savings; I’ll be fine.”
Unless you have enough savings to last years, income protection can be a more sustainable long-term solution.
3. “My job gives me sick pay.”
Many employers only offer limited sick pay, which may run out before you’re able to return to work.
4. “Income protection is too expensive.”
With tax relief and customisable plans, income protection is often more affordable than expected.
Final Thoughts
Your ability to earn is one of the most important financial assets you have. Best income protection in Ireland is a practical, effective way to safeguard it against the unexpected. Whether you’re a young professional just starting out, a self-employed contractor, or someone supporting a family, a tailored income protection plan offers peace of mind and financial stability when life takes an unexpected turn.
Before committing to any policy, speak to a financial adviser who understands the Irish insurance landscape and can help you tailor a plan that fits your lifestyle, career, and goals. Taking action now means that if the unexpected happens, your income—and your life—won’t be left hanging in the balance.
