Income Protection - Frequently Asked Questions
Q. What exactly does Income Protection Cover?
A. An Income Protection Policy will provide you with an alternative income if you are unable to work due to illness, disability, injury or sickness. Minimum social welfare benefit is paid (currently €198 per week for a single person) – would this be enough to pay your mortgage, household bills and maintain your lifestyle?
In the event of you being unable to work, we will pay you the agreed benefit monthly.
Q. How is this different to a Critical Illness Policy?
A. Critical Illness only covers a specified number of illnesses where as Income Protection covers any illness, injury, accident or disability that prevents you from working.
Critical Illness pays a once off lump sum and your Income Protection Policy pays a regular income until you are able to return to work or until the end of the policy term.
There is no tax relief available on Critical Illness,however you can claim tax relief at your marginal rate on Income Protection premiums.
You can only claim once on a Critical Illness policy, with Income Protection there is a multiple claim facility so you can claim as many times as is necessary.
Q. How soon can I get access to this Income if I am out of work?
A. The income will be paid after your chosen period of 13, 26 or 52 weeks.
Q. How do I claim the Tax Relief?
A. You will be required to include an Income Protection Tax Certificate with your tax returns. This will be included with your policy conditions when issued.
Q. How long will you pay the benefit if I am out of work?
A. The Income Protection Policy pays a regular income until you are able to return to work or until the end of the policy term.
Q. How many times can I claim on this policy?
A. You can submit claims on your Income Protection policy as many times as you require benefit, right up until the end of the policy term.
Q. What do I do if my salary changes?
There is an automatic benefit on this policy which allows you to increase the cover on your policy by 20% of the original cover every 3 years without having to provide evidence of health.
You can also select the Indexation Option on your policy this means that both your premium and benefit will increase by 3% each year on your plan.This can help ensure that your benefit automatically stays in line with any salary increases.
All of these options help ensure that as your salary increases each year, so will your Income. Alternatively if these options are not selected you can contact us re increasing the benefit as salary changes. This type of increase will be subject to evidence of health.
Note: The maximum income that can be provided is 75% of your Salary less social welfare benefit of €9,662 for employees.Social welfare doesn't apply to Self Employed. No state benefit is paid to Self Employed people as full PRSI is not paid.
Q. If I am out of work, will I have to pay my premium/will the premium still be deducted from my account?
A. You do not have to continue paying premiums while you are receiving an Income from your policy. Friends First will pay your premiums for you and when your claim finishes, you then restart paying your premiums.
Q. What if I change jobs do I need to let you know and will my premium change?
A. We will continue to provide cover if you change jobs, regardless of what the new job entails. If you are made redundant, you can continue your plan while looking for another job but you cannot claim benefit while unemployed.
Q. I plan leaving the country to go and work abroad, will this policy still cover me if I am out of work?
A. There is full cover if you are living within the EU. If you claim income benefit, while you are outside the EU, we will pay your income for 13 weeks in any 52 week period or 39 weeks in total. If you return to Ireland or the EU within this time we will continue to pay your income benefit.