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Can I get Income Protection Before Starting a New Job?

income protection changing jobs consideration

Income Protection and a Career Change

If you’re considering a career change, congratulations!

Job hopping can be scary but incredibly rewarding.

Whether you’re just starting in your career or are looking for a new challenge, here are some things to consider when changing jobs.

1. How will a new job affect your health?

It’s important to consider how the job you’re applying for will affect your health.

This is especially important if

  • you’re applying for work that requires you to stand or walk for long periods
  • or if you’re working in a job that requires you to lift heavy things
  • or you’ll be under considerable stress from a pressured environment and long hours (someone has to pay for your fat salary – they don’t give it for free)

If you think you’ll be unable to stick to your new job and keep your sanity, this should raise a red flag.

Think about simple things like the commute. Is it longer or shorter? If it’s much longer, does that mean you won’t have time to exercise or eat properly? Once you get home, is the new you just about capable of flaking out on the couch with a takeaway menu and a bottle of booze?

You might be earning more…but for what – to buy things you don’t need to impress people you don’t even like.

I worked in London for a time in my 20s – a City boy making silly money, but I have never been so broke because I was hanging around with a crowd who were earning even more. Keeping up with the Jones’ is an expensive habit.

Before accepting a job offer, consider if you’re a good fit for the role and company. If you’re not sure it’s the best job for you, you’ll be less excited and less motivated to perform at your best. If a job is too passive or impersonal, you might feel like you’re not learning as much as you could be, and this could lead to burnout and frustration.

2. What benefits are you leaving behind?

This is über important, especially if you have any underlying health conditions:

If your current employer is generous enough to offer death in service (work-life insurance) or income protection, make sure you can get similar cover before you jump ship.

I have had many panicked discussions with clients who left their cushy job with all these benefits only to find out their new job had none.

Look, it’s an easy mistake to make; you probably aren’t even aware of the cover you have at your current job, but if you’re thinking of leaving, you better find out quick smart.

I can’t overemphasise how important this is.

You’re moving to a new job, presumably for a higher salary and therefore your new employer will have high expectations.

High expectations = high pressure

High pressure without the expected results makes you work harder.

Working harder can lead to burnout.

A mental breakdown can follow a prolonged period of burnout.

And this is where your income protection saves you.

Your policy will replace 75% of your income and continue to payout until you get back to your job.

Without income protection, your income will fall to just €203 per week. And if you’re moving into a self-employed contractor role, you might not even be eligible for this €203, so your income could drop to zero.

I told you it was important!

So please, don’t leave your current job without investigating a personal income protection policy.

You might find these articles useful:

Income Protection for the Self Employed & Freelancers

Income Protection for Contractors

What if your new job doesn’t offer Income Protection or Life Insurance?

If you’re in great health, then it’s straightforward, you can buy your own policies. But if you’re in your 40s or 50s, the premiums can be tasty enough.

Let’s say you’re a 45-year-old actuary, and the new gig offers a base salary of €100k but only offers sick pay for the first 13 weeks; then you’re on your own sonny.

You have some savings, so you feel you could get through 13 weeks without an income, so I recommend the following policy.

Quote Type: Income Protection
First Person: Non-Smoker, born on 15/04/1976
Cover Amount: €64,444 per year until age 65.
Occupation Class: Actuary (Class 1)
Deferred Period: 26 weeks
Monthly Premium: €185
After-tax relief: €112

In your previous job, you have four times death in service, and you want to replicate that cover:

Quote Type: Life Insurance
First Person: Non-Smoker, born on 15/04/1976
Cover Amount: €400,000 paying monthly, over 25 years.
Conversion Option: Yes
Monthly Premium: €60

That’s a net premium of €2160 per month, so something to consider before you hit send on that “LATERS LOSERS” email.

What if you have an underlying condition?

Let’s say you are in remission.

There is a small chance of getting income protection, but there will be a cancer exclusion.

So if you’re unfortunate enough to suffer a recurrence, you won’t be able to claim.

However, you will be fully covered if your current job has you insured under a group income protection scheme.

That is peace of mind that your money, literally, can’t buy.

One of my clients had a similar story to this. She was working in a large legal firm when she was diagnosed with breast cancer.

Fast forward ten years and a management consultancy firm headhunted her, but the role didn’t offer income protection. She was understandably reluctant to take the new job without having income protection. Fortunately, as her tumour was early stage and quite some time had passed, we managed to get her full income protection without any exclusions.

What happens if I’m “between jobs” and make a claim?

Most insurers will refuse your claim because they require you to be in full-time employment for a valid claim to arise.
However, some insurers will offer you Essential Activities Benefit. In other words, if you are seriously incapacitated, they will pay out €15,000 per year until you get back to work.

Over to you

I’ve nowt left to say only tread carefully. It costs nothing to investigate your income protection options while you’re in your current job.

But imagine no cover when you find a lump, or you’re hanging on by a thread.

If you’d like some help, complete this questionnaire, and I’ll check things out for you in confidence.

Best of luck with the new job!


Income Protection Insurance
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Well, congratulations, it's your new home.

Sounds a bit empty doesn't it, a bit echoey?

That's because the feckers who sold the house took EVERYTHING, the only place to sit is the toilet and you're lucky they even left that.

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