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The vast majority of us insure our car because we are legally required to do so. Most of us insure our house for the simple reason that we could not afford the rebuild or repair costs in the event it is damaged. Many of us insure our phones and other electronic purchases because we consider them important but have you ever considered the most important thing that you should be protecting your income?

Your income pays for everything: the mortgage, food, electricity, heating, education, clothing, hobbies...the list is endless. If an accident or illness prevented you from working, how would you manage? Would your employer continue to pay you indefinitely? You might be lucky enough to have savings which could cover your costs for a number of months or even a few years, if you cut back on all luxuries, but what if your illness or injury meant never working again?

The state illness benefit for an individual is €220 a week and if you are self-employed, you are not entitled to anything! It is easy to think ‘it won’t happen to me’, but unfortunately that is not the case:

• Every 3 minutes in Ireland someone is diagnosed with cancer, with 1 in 2 people in Ireland developing cancer during their lifetime. (Source: Marie Keating Foundation, May 2021)
• The most recent research available shows that there are now more than 24,000 invasive cases (13,027 men, 11,299 women) diagnosed each year. This does not include non-invasive cancers like non-melanoma skin cancers. (Source: Cancer in Ireland 1994-2020: Annual Statistical Report 2022. National Cancer Registry of Ireland, 2022)
• 1 in 5 people will have a stroke at some time in their life which is approximately 10,000 Irish people a year. (Source: Irish Heart Stroke Foundation, May 2021)
• An estimated 30,000 people are living in the community with disabilities because of a stroke. (Source: Irish Heart Stroke Foundation, May 2021)
• 82% of stroke survivors were working prior to their stroke but only 41% had resumed some work within 6 months after their stroke and only 32% were working full-time one year after their stroke. (Source: Irish Heart Stroke Foundation, May 2021)
• The most common problems limiting the ability to work following a heart attack or stroke are mental fatigue (84%), physical fatigue (78%) and difficulties thinking (78%). (Source: Irish Heart Stroke Foundation, May 2021)
• With medical advances, people are more likely to survive serious illnesses, but this means that more people are likely to take prolonged periods off work for treatment and recovery.

Yet, there is a way to secure your income, so should you be unlucky enough to suffer an injury or illness and be unable to work for an extended period, you have some peace of mind. It’s called Income Protection. It can be used towards paying the bills that your salary previously covered and allows you the time to recuperate and get back to full health should you be unable to work.

After an initial waiting period, it will pay a weekly income of up to 75% of your salary, until you are either able to return to work or retire, whichever comes first. Monthly premiums qualify for tax relief at your marginal rate of income tax which will make the costs even more affordable.

Don’t let your lifestyle or your ability to look after your family disappear. Protect them today with an Income Protection Plan for your peace of mind and their future.

Lisa Doherty, CFP^® BBS QFA RPA SIA is a CERTIFIED FINANCIAL PLANNER™. You can contact her through John F. Loughrey Financial Services by telephone on 074-9124002 or by email on lisad@jfl.ie