We believe Income Protection cover should form an important part of any financial planning conversation. After all it is your income that provides the funds to pay for almost everything else. So what would you do if you couldn’t work to earn that income? In this piece, Anne O’Doherty, Head of Life & Pensions, looks at the key questions we are asked when we discuss income protection.

What is income protection?

In the very simplest terms Income Protection is a type of protection policy designed to protect your income. It provides an alternative income if you are unable to work due to injury or illness. This can give you financial security and peace of mind while you recover. We all have mortgage protection, car insurance, home insurance and travel insurance, to name but a few. But what pays for all these things? Your income. So why would you not consider protecting it.

How is income protection different to serious illness cover?

The main difference is that Income Protection pays a regular income whereas Serious Illness cover pays a once off lump sum when you claim. In addition, Income Protection is occupation dependent and covers any illness, injury or disability that prevents you from working. Serious Illness cover is available regardless of your occupation but only the illnesses specified on your plan are covered. The other big difference is in the tax treatment of each plan. Tax relief is available on your Income Protection premiums but the benefit is taxed. However, with Serious Illness tax relief is not available on your premiums but the benefit payment is tax-free.

How much cover can I take?

You can insure up to 75% of your income minus any State Illness benefit you are entitled to. Currently this is €220 per week (or €11,440 per year). So if you earn €80,000 you can insure a total of €60,000 less €11,440 or up to €48,560 per year. This means that you would receive a taxable income of €4,046 per month until you get back to work or your policy ends.

If you are self-employed, then you are not entitled to any State Illness benefit. This means you can ensure up to the full 75% of your income.

The important thing is to work out how much income protection cover you may need. Think about your income and your outgoings, how much income do you need to cover your living expenses?

How long will I be covered for?

If you can’t work because of illness or injury, your income protection plan gives you a replacement income until you either return to work or if you’re not fit to return before then, the ceasing age you selected when taking out the policy. You can also decide at outset when you would like to be able to access the plan, should you need to. This is called the deferred period and is usually anything from 13 to 52 weeks.

That sounds really appealing but is it expensive?

At the end of the day, it depends on the value you put on having an income should the worst happen. The cost varies depending on a range of factors including your occupation, your health and age as well as how much income you wish to insure. We believe that some level of Income Protection should form part of a robust financial plan and it really is down to how much you think you will need as a replacement income. There are lots of different factors that affect the cost. It can be reduced by insuring a smaller portion of your income or selecting a different deferred period. Remember to that you can claim tax relief on your premiums.

If you’d like to take a closer look at Income Protection and what kind of plan is right for your circumstances, just get in touch with us at Quintas Wealth Management, because we know what counts.

27 March 2023

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What our clients say about Quintas

  • 1

    "I would like to express my thanks for the work you have done for me over the past years. The expertise and attention to detail with which you have handled my financial affairs could not be faulted. Particularly reassuring to me is the feeling of c..." Read more

    - John Riordan | Director of Support | Shopify

  • 2

    "I have been dealing with Anne O’Doherty in Quintas Wealth Management for over 10 years, i would strongly recommend their services based on professionalism , friendly manner and a strong track record on investment performance."

    - Helen Down | Ballincollig

  • 3

    "Having dealt with Quintas Wealth Management over 6 years for protection, Investments and Pensions I would have no problem in recommending them based on their professional and efficient service."

    - Derek Goggin | Chief Financial Officer | Teamwork

  • 4

    "I have dealt with Anne O’Doherty in Quintas Wealth Management for the last 6 years and I would strongly recommend them based on their professional, efficient and friendly service and most importantly their track record with our investment portfolio." Read more

    - Brian Robinson | CTO | Dataworks Limited

  • 5

    "I and clients of mine have availed of the excellent services of Quintas Wealth Management, led by Anne O’Doherty. I have no hesitation in recommending Quintas Wealth Management."

    - John Boylan | Partner BDM Boylan Solicitors

  • 6

    "I have been dealing with Anne and her team in Quintas Wealth Management for the last 10 years . I would recommend Quintas Wealth Management because of their transparency on a range of investment ideas within my pension fund .i would have no hesita..." Read more

    - Dr Rose Curtin | Elmwood Medical Centre

  • 7

    "I have been a client of Quintas Wealth Management since its establishment in 2005 and over the last 16 years the team have provided me with invaluable advice in a very efficient and professional manner."

    - Dr Sean Mc Carthy | Dentist

  • 8

    "I have been a client of Quintas Wealth Management since 2013 and have always found their process and approach to clients very professional As an accountant I feel this is of utmost importance when referring my clients to Quintas Wealth Management. "

    - Aidan Mc Avinue | Accountant

  • 9

    "Protecting our family was at the forefront of our mind when we engaged with Quintas Wealth Management. What we came away with is a far more robust financial plan based on a complete analysis of our financial situation. We cannot thank the team eno..." Read more

    - Gino & Nicola Lee | Director | Parbo Limited

  • 10

    "I originally engaged Anne and her team to assist with setting up my pension and retirement planning. However, I received far more than that and now have a much broader, well-thought out and organised financial plan that really gives me peace of mind."

    - Monica Holland | Director | Cloghroe Pharmacy

  • 11

    "We have had the pleasure of dealing with Quintas Wealth Management over the past year. Without doubt we feel we have benefitted from the most astute financial advice combined with exceptional customer service."

    - Pat Mullins | Partner | BDM Boylan Solicitors LLP

  • 12

    "Anne O’Doherty has been our financial advisor for the past 6 years . she listens to our requirements and our long-term goals and has provided us with a comprehensive plan of action. Anne has always offered sound financial advice based on our inv..." Read more

    - Peter Murphy | Director & General Manager | Apple Operations Limited

1

John Riordan | Director of Support | Shopify

I would like to express my thanks for the work you have done for me over the past years. The expertise and attention to detail with which you have handled my financial affairs could not be faulted. Particularly reassuring to me is the feeling of certainty in the absolute integrity of your dealings with us.

2

Helen Down | Ballincollig

I have been dealing with Anne O’Doherty in Quintas Wealth Management for over 10 years, i would strongly recommend their services based on professionalism , friendly manner and a strong track record on investment performance.

3

Derek Goggin | Chief Financial Officer | Teamwork

Having dealt with Quintas Wealth Management over 6 years for protection, Investments and Pensions I would have no problem in recommending them based on their professional and efficient service.

4

Brian Robinson | CTO | Dataworks Limited

I have dealt with Anne O’Doherty in Quintas Wealth Management for the last 6 years and I would strongly recommend them based on their professional, efficient and friendly service and most importantly their track record with our investment portfolio.

5

John Boylan | Partner BDM Boylan Solicitors

I and clients of mine have availed of the excellent services of Quintas Wealth Management, led by Anne O’Doherty.

I have no hesitation in recommending Quintas Wealth Management.

6

Dr Rose Curtin | Elmwood Medical Centre

I have been dealing with Anne and her team in Quintas Wealth Management for the last 10 years . I would recommend Quintas Wealth Management because of their transparency on a range of investment ideas within my pension fund .i would have no hesitation in recommending their services.

7

Dr Sean Mc Carthy | Dentist

I have been a client of Quintas Wealth Management since its establishment in 2005 and over the last 16 years the team have provided me with invaluable advice in a very efficient and professional manner.

8

Aidan Mc Avinue | Accountant

I have been a client of Quintas Wealth Management since 2013 and have always found their process and approach to clients very professional
As an accountant I feel this is of utmost importance when referring my clients to Quintas Wealth Management.

9

Gino & Nicola Lee | Director | Parbo Limited

Protecting our family was at the forefront of our mind when we engaged with Quintas Wealth Management. What we came away with is a far more robust financial plan based on a complete analysis of our financial situation. We cannot thank the team enough for making this so easily to understand and complete.

10

Monica Holland | Director | Cloghroe Pharmacy

I originally engaged Anne and her team to assist with setting up my pension and retirement planning. However, I received far more than that and now have a much broader, well-thought out and organised financial plan that really gives me peace of mind.

11

Pat Mullins | Partner | BDM Boylan Solicitors LLP

We have had the pleasure of dealing with Quintas Wealth Management over the past year. Without doubt we feel we have benefitted from the most astute financial advice combined with exceptional customer service.

12

Peter Murphy | Director & General Manager | Apple Operations Limited

Anne O’Doherty has been our financial advisor for the past 6 years . she listens to our requirements and our long-term goals and has provided us with a comprehensive plan of action. Anne has always offered sound financial advice based on our investment objectives as well as our personal needs.

About us

Quintas Wealth Management is a Cork-based Financial Services Provider.

Our objective is to enhance your financial health through our independent advice, expertise, and experience. We are dedicated to providing quality and excellence in everything we do. Our aim is to give our customers the best value and solutions for all their wealth management needs.

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