Income Protection Insurance Cover

Originally published: June 2020 | Last updated: September 2025

Sick Pay in Ireland: The Reality

• Legal entitlement = just 5 paid days a year.
• State Illness Benefit = €244/week (€12,688 a year).
• If you’re self-employed, you get nothing.

That’s where Income Protection Insurance comes in.

What is Income Protection?

Income Protection (also called Salary Protection) pays you up to 75% of your salary if you can’t work due to illness, injury, or disability. It doesn’t cover redundancy.

• Think of it as a replacement salary until you get back to work or reach your policy end date.

Why You Need It

Life doesn’t stop when you’re sick:

• Mortgage or rent
• Groceries & bills
• Wi-Fi, Netflix, Friday takeaways
• Football boots and kids’ “essentials”

Could you cover that on €244/week?

Income Protection vs Serious Illness Cover

Serious Illness Cover = lump sum for a set list of illnesses.
Income Protection = monthly payments for almost any illness or injury that stops you working.

Analogy: Serious Illness = Third Party Fire & Theft. Income Protection = Fully Comprehensive.

Read: Compare Income Protection and Serious Illness Cover

How It Works

1. Deferred Period

Wait time before claims start: 4, 8, 13, 26, or 52 weeks.

• Shorter = more expensive, but quicker payout
• Longer = cheaper, but leaves a gap

2. Benefit Amount

Up to 75% of pre-tax income, minus Illness Benefit/employer sick pay.
Example: €50k salary → max cover €37,500 → minus Illness Benefit (€12,688) = €24,812 net benefit.

3. How Long It Pays

Until you recover or hit your policy end age (55–70). Average claim length in Ireland: 7 years.

4. Tax Relief

Premiums qualify for 20% or 40% tax relief.

Read: How Does Income Protection Work

What’s Covered / Not Covered

✅ Covered: most illnesses/injuries, including mental health and back/joint issues.
❌ Not covered: pre-existing conditions, drug/alcohol abuse, self-inflicted injuries, normal pregnancy, war/crime.

Cost Example

Healthy 40-year-old, €50k salary, 26-week deferral → ~€15/week (before tax relief).
👉 Always go for Guaranteed premiums (fixed for life). Avoid reviewable, cheaper to begin with.

Who Needs It Most?

• Self-employed & directors: no sick pay, no Illness Benefit
• Medical professionals: big income drop without cover
• Engineers, accountants, financial services: income stops the day you stop working

Best Providers in Ireland

• Aviva → Best overall (competitive, strong rehab support)
• Royal London → Often cheapest
• Zurich → Fairer for some jobs
• New Ireland → Sometimes best with complex health issues
• Irish Life → Solid option with support extras

Nick’s Take: If all else is equal, I back Aviva — fair claims, decent price, and best rehab benefits.

FAQs

What does it cover? Up to 75% of salary if you can’t work.
Cost? Around €15/week for a healthy 40-year-old on €50k (before tax relief).
Tax deductible? Yes, at 20% or 40%.
How long does it pay? Until recovery or policy end age.
Can self-employed get it? Yes — and they need it most.

Why Lion.ie?

• 1,900+ five-star reviews
• Specialists in tricky medical cases
• Online, no-BS process
• Proper advice, not bank-sell tactics