Income Protection for IT Professionals
We have experience assisting clients from a wide range of occupations within the IT sector.
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Income Protection for IT Professionals
As an IT Professional, you may be working as an employee, as a self-employed contractor, or as a sole trader.
Whichever applies, would you be able to cope financially if you suffered an injury or illness that prevented you from working?
An Income Protection policy could be the safeguard you need. Luckily, occupations within the IT sector are seen as low risk. Therefore, you can take advantage of starting an income protection policy at a much lower premium than other professions.
Income protection is different from other insurance policies in that you can also claim tax relief on your premiums at your marginal rate.
Did you know?
Income Protection policies are eligible for tax-relief
The above is based on an individual in the 40% income tax bracket.
How does Income Protection work for IT Professionals ?
Income Protection will pay out a monthly benefit that replaces part of your lost income should you be unable to work due to illness or injury.
These benefits will be paid after you are unable to work for a certain period of time. This is known as the deferred period. You can choose the deferred period that is most suitable for your situation but it typically starts from 4 weeks and options include 8,13,26 and 52 weeks.
What IT Professions are covered?
We understand that there are many different occupations within the IT sector. At emero, it is an area we specialise in. Some of our client’s specific occupations include:
- Programmers
- Developers
- System Analyst
- Network Engineer
- UX Designer
- Business Analyst
- IT Security Specialist
- Programmers
- Developers
- System Analyst
- Network Engineer
- UX Designer
- Business Analyst
- IT Security Specialist
- Programmers
- Developers
- System Analyst
- Network Engineer
- UX Designer
- Business Analyst
- IT Security Specialist
There are also several other occupations within the IT industry that can avail of income protection. If your occupation is not listed above, feel free to contact our team to discuss your options.
How is Income Protection calculated?
Income Protection is calculated based on your occupation. As an IT Professional, you will fall under Class 1 meaning you are in the lowest risk category.
This is beneficial as it means you will be eligible for the cheapest premium possible.
Class 1 | Class 2 | Class 3 | Class 4 |
IT Professional | Dentist | Locksmith | Plumber |
How much does Income Protection cost?
Age
Health
Occupation
Smoker
Deferred Period
Age
Health
Occupation
Smoker
Sum insured
The percentage of salary you would like to cover will have a significant impact on your premium.
Do I need Income Protection as an IT Professional?
In most cases, yes. Particularly if you operate as a contractor or on a self-employed basis.
As a self-employed individual, you will not be entitled to the State Illness Benefit.
State Illness Benefit | State Illness Benefit |
Self Employed (Contractor) | ❌ |
Employee | ✔️ |
This means you will be exposed financially should you become unable to work due to sickness or injury. Without an income, many of us will struggle to pay the mortgage, bills or general living expenses.
Key Points
- The average savings in Irish households is on average only €6,000 (CSO) This only equates to approximately 1.5 times the average monthly salary.
- Even those who qualify for the full State Illness Benefit will only receive €208 per week. This is a drop of €33,228 per year when compared with the average annual wage in Ireland.
- Only one-third of employers fund long-term illness.
- The average Income Protection weekly payout is approximately €700.
How much Income Protection Insurance do I need?
Figuring out how much income you need to replace will vary depending on personal circumstances.
Some people may have larger regular outgoings each month. Whilst some may have very little or live a modest lifestyle.
Looking to learn more?
Unsure of how much Income Protection you may need? Find out more in our guide that breaks down the different aspects to consider.
What does Income Protection Cover?
Income Protection covers you from anything that prevents you from doing your job. Once your deferred period has passed, benefits will begin to be paid.
These benefits will continue to be paid until you either:
- Reach the retirement age agreed in your policy, or
- Can return to work
Whichever of the above comes first.
This is where Income Protection has a major advantage over other insurance options such as Specified Illness Cover.
What does Income Protection not Cover?
Income Protection is designed to cover you when unable to work due to an illness or injury.
Therefore, there are certain situations that are not covered. These include:
- Redundancy
- Maternity leave
- Working in a foreign county
How emero can help you get Income Protection Insurance
Calculate the cover required
Search the market
Protect your Income
IT Professionals Income Protection Insurance FAQ's
Many of the IT sector in Ireland work as contractors or self-employed individuals. This means that they would not be entitled to sick pay from an employer or from the State.
Therefore, having an Income Protection policy in place gives them something to fall back on and pay living expenses while unable to work.
If you work in the IT sector and have an administrative based job, you will fall under Class 1. This means your occupation is seen as having the lowest risk which will be reflected in lower premiums.
If you are unsure as to what occupation classification you fall under, please feel free to contact our team.
Although you can ensure up to a maximum of 75% of your income, this may not be necessary for all circumstances. Some people may not need this percentage of their income to continue the lifestyle they would like.
Income Protection should be judged on a case-by-case basis as there are many variables to consider before putting a policy in place.
This will depend on the agreed deferred period in your policy. This deferred period must have passed before your benefits will begin to pay out.
Speaking with a member of our team is a good starting point. We can answer any questions you may have and provide clarity on certain aspects. There may also be some areas you have no considered which you can chat through and assess alongside our team.
If you need to make a claim, please contact our team as soon as possible. From here we can discuss your policy details and go through the next steps.
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