How to Choose Income Protection in Ireland
Choosing income protection isn’t just about finding the cheapest quote.
Different insurers have different sweet spots, exclusions, and quirks — and if you don’t know what to look for, you could choose a policy that doesn’t suit you in the slightest!
We’ve arranged hundreds of income protection policies in Ireland since 1981, so we know the traps to avoid — and how to get you the right cover at the right price.
Quick Takeaways — The 5 Big Decisions
Step 1: Check Your Sick Pay
Your employer’s sick pay policy is the starting point. If they pay you for six months, you don’t need a policy that starts after 4 weeks — you can save big by choosing a longer deferred period.
Tip: Self-employed? Assume zero sick pay — your deferred period will likely need to be shorter.
📌 Related guide: Compare Income Protection in Ireland
Step 2: Set the Right Deferred Period
The deferred period is the time between being unable to work and your policy starting to pay out.
Shorter deferred period = higher premium but faster payout.
Longer deferred period = lower premium but you’ll need savings or sick pay to bridge the gap.
Most people choose 13, 26, or 52 weeks based on sick pay and savings.
Step 3: Match Cover to Your Net Income
In Ireland, you can insure up to 75% of your current income (minus State Illness Benefit).
If you earn €80,000 gross, the max a PAYE worker can insure is about €47,000/year.
On the other hand, if you’re self employed, you can insure the full 75% i.e. €60,000
Why gross income? Income Protection payouts are taxable (but you claim tax relief on your premiums)
Step 4: Know Insurer Sweet Spots
Not all insurers are equal.
Some offer lower premiums for the same occupation, some are more flexible with pre-existing conditions, and some have better add-ons.
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📌 Next step: Best Income Protection Policies in Ireland
Step 5: Watch for Exclusions
All policies list exclusions — situations they won’t cover.
Common ones include self inflicted inuries, pre-existing conditions, and dangerous hobbies like motorsport or skydiving.
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If you’ve got a medical history, get in touch before you apply.
Although sometimes exclusions can’t be avoided (you’re still covered for everything else — especially the illnesses or injuries you don’t see coming), we’d prefer to try to get you cover without any.
By now, you know what matters most to you. The tricky bit is matching that to the right insurer — without missing a hidden clause in the small print.
Why Use Lion.ie Instead of Going Direct?
- We compare all five insurers in Ireland — not just the cheapest.
- We specialise in tricky cases and self-employed cover.
- We’re small and client-focused, you will deal with Nick, Hannah, John or Richie.
- We’re not a call centre reading from scripts!
Mini FAQ — Common Questions About Choosing Income Protection
Is income protection worth it?
Can I get income protection if I’m self-employed?
Will pre-existing conditions stop me getting cover?
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