Claiming tax relief on your Income Protection policy

The ability to claim tax relief on your contributions is often one of the most attractive benefits when putting an Income Protection Insurance policy in place. The way your relief is claimed will depend on the type of Income Protection policy you have. You will have one of the below policies:

1) Personal Income Protection

This is a policy where you pay the premiums and therefore will be entitled to tax relief at your marginal rate. Should you be in the higher income tax bracket, your relief will be at 40%.

Therefore, a €100 policy will in ‘real’ terms only cost €60.

Personal Income Protection

2) Executive Income Protection

An Executive Income Protection policy is taken out by the company on behalf of an owner or director. In this case, premiums may be allowable as a business expense and can be offset against corporation tax.

Executive Income Protection

Below we outline two main areas:

  • How to claim your Income Protection tax relief 
  • How do you claim your benefit in the event of an Income Protection claim? 

We have also outlined what an Income Protection policy is along with how the deferred period works.

What is Income Protection?

Income Protection is an insurance policy that will pay you a monthly benefit should you be unable to work due to illness, injury, or disability.

It allows you to protect up to a maximum of 75% of your salary.

You will receive your benefit after being unable to work for an agreed period of time. This is referred to as the deferred period. The deferred period will be agreed upon at the outset of your policy and can run from between 4 – 52 weeks.

How to claim your Income Protection tax relief

The process of claiming your tax relief is relatively straightforward. Should you have an Executive Income Protection policy, everything will be done by the company.

If you have a Personal Income Protection policy, follow the steps below.

Step 1 - Log onto the relevant section of the Revenue website.

Step 2 - Sign in to myAccount.

Step 2

Step 3 - Click on the ‘Manage your tax’ link

Step 3

Step 4 -Select ‘health’ and ‘Income Continuance’

Step 4

Step 5 -Provider cover and annual contribution amount (total annual cost of IP)

step 5

From here you will be able to claim your tax relief whether that is at 20% or 40%.

Please Note  Police Car Light on Twitter Twemoji 14.0
The above is for Personal Income Protection policies only.

How you claim your benefit in the event of an Income Protection claim

If you feel you are entitled to claim on your Income Protection policy, the first port of call is to contact your broker. 

From here, they can liaise with the relevant Life Insurance company and begin the process. The process usually involves the below steps:

  1. Contacting your broker
  2. Submitting the claim to the relevant insurer
  3. Submitting your medical report(s)
  4. Claim is assessed 
  5. The benefit is put into payment
  6. The claim is reviewed on an ongoing basis
  7. Rehabilitation or return to work programmes where relevant

The above process is a general guide. Each insurer will have their own processes and may vary from the above.

Each Life Insurance company will also offer different additional benefits that may be unique. For example, Aviva offers a best doctors programme which allows you access to over 50,000 doctors worldwide across 450 specialties.

How is a Personal Income Protection claim paid?

In the case of Personal Income Protection, your claim will be paid directly from the insurer into your bank account. The Life Insurance company effectively becomes your employer while benefits are being paid.

How is an Executive Income protection claim paid?

With an Executive Income Protection claim, the benefits are paid to the company that owns the policy. From here the benefits will be paid to you.

In both cases there will be necessary tax deductions to be made as the benefit will be replacing your salary.

How emero can help you put Income Protection in place

At emero, we have a team of experienced Qualified Financial Advisors. We assist clients from a wide range of backgrounds and use our expertise to ensure they get the most suitable cover.

Our quote engine allows you to compare Income Protection quotes from Ireland’s leading insurers such as Aviva, Zurich, Royal London, New Ireland, and Irish Life.

We have no affiliation with a single insurer meaning we can ensure you get the most suitable cover for your specific needs.

However, Income Protection can often be quite nuanced. This is why we always recommend picking up the phone and speaking with a member of our team.

You are welcome to contact us via phone or email. We would be happy to assist and answer any questions you may have.


[email protected]


01 9630436

In-Person Meeting

Contact via phone or email

Video Call

Contact via phone or email

<b>Ian Kennedy QFA</b> <br>Senior Insurance Advisor</br>
Ian Kennedy QFA
Senior Insurance Advisor

Ian is one of our Senior Financial Advisors at emero and has worked within the financial sector for the past five years. If you would like to chat with Ian directly, please get in touch with him at 

emero red icon
emero logo

Providing specialised Income Protection advice.

Phone: 01 963 0436

Life insurance quote
Share this

Share this guide

Join 1,000+ subscribers who receive the latest news and insights.

By signing up you agree to our privacy policy

Scroll to Top

We're shortlisted for Protection Broker Expert of the year 2023 🏆