In this highlight from our newsletter we're looking at options to help you protect your income in case of an illness or injury.
When thinking about your financial future, one question often comes up: How would I manage if I couldn’t work due to illness or injury? In Ireland, two key options can help protect your income: Specified Serious Illness Cover and Income Protection. While they both offer valuable support, they work in different ways and suit different needs, and sometimes combining the two is the smartest move.
What is Specified Serious Illness Cover?
This type of cover pays out a lump sum if you're diagnosed with a serious illness or condition listed in your policy, like cancer, stroke, or heart attack. That payout can help with medical bills, lost income, or even home adjustments if your condition requires it.
Why people choose it:
Immediate financial support when it’s needed most
Tax-free lump sum to use however you need
Can be added to life cover or taken on its own
Things to keep in mind:
Only covers illnesses listed in the policy
It’s a one-time payment, with no ongoing income support
What is Income Protection?
Income Protection is designed to replace a portion of your income - typically up to 75% - if you're unable to work due to illness or injury. Payments continue until you recover or reach retirement age, whichever comes first.
What are the advantages:
Ongoing income to help maintain your lifestyle
Covers a wide range of conditions, not just specific diagnoses
Tax relief on premiums makes it more affordable
Considerations:
Payments usually start after a waiting period (4 to 52 weeks)
Ends when you return to work or retire
Why combining the two can be the smartest move
Each policy offers a different kind of protection. Serious Illness Cover helps with immediate costs, while Income Protection ensures long-term financial stability. If your budget allows, having both can give you peace of mind and a more complete safety net.
Benefits of combining:
Covers both short-term and long-term needs
Broader protection across different scenarios
Reduces financial stress during recovery
Do you need help choosing? Let’s talk.
Choosing the right cover depends on your personal circumstances, budget, and goals. We use advanced comparison tools to help you find the best value and fit for your needs. Whether you’re just starting out or reviewing your current protection, we’re here to guide you.
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