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Income Protection for Legal Practitioners
We have experience assisting clients from a wide range of occupations within the legal sector.
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Solicitors, barristers, and other legal professionals often work long hours and have high-tempo, stressful jobs. Such an occupation often increases the chances of being unable to work for a period of time.
Therefore, it is important to have protection in place should you be unable to work. If you have anyone who depends on you financially, cover should be a given. Income Protection Insurance will allow you to receive a percentage of your salary should you be unable to work due to illness, injury, or disability.
Income Protection for Legal Practitioners
Working in the legal sector will give you a major advantage over other occupations when applying for Income Protection. Due to the nature of your work, you will likely be seen as low risk.
Combine this with the fact you will receive tax relief at your marginal rate and you can likely ensure a large percentage of your income for relatively little.
Example of an Income Protection premium for a Legal Practitioner
Salary | Percentage covered | Premium | Premium after tax relief |
€75,000 | 75% | €127 | €76 |
**Quote based on a 40-year-old non-smoker with a deferred period of 26 weeks**
The above illustrates the impact tax relief can have on your premiums. In this example, you can ensure 75% of your income for €19 per week.
What occupations within the legal profession can get Income Protection?
We understand that there are many different occupations within the legal sector. At emero, it is an area we specialise in. Some of our client’s specific occupations include:
- Barrister
- Solicitor
- Legal Secretary
- Legal Administrators
- Office Manager
- Receptionist
- Property & Conveyance Solicitor
- Barristers
- Solicitor
- Legal Secretary
- Legal Administrators
- Office Manager
- Receptionist
- Property & Conveyance Solicitor
- Barristers
- Solicitor
- Legal Secretary
- Legal Administrators
- Office Manager
- Receptionist
- Property & Conveyance Solicitor
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.
Why is Income Protection important for Legal Practitioners?
Income Protection is something that everyone should have. Whether you are an employee, self-employed or a sole trader, your income is likely your most important asset.
If you are self-employed, you will not be entitled to the State Illness Benefit.
If you are an employee, you may be entitled to a short period of sick pay. However, your employer is under no obligation to pay you while out sick. Even with the full State Illness Benefit, you will be relying on €208 per week or €10,816 per annum.
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 |
Solicitor | 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.
Did you know?
Income Protection policies are eligible for tax-relief
The above is based on an individual in the 40% income tax bracket.
Do I need Income Protection while working in the legal sector?
The answer is almost always yes. Should you have a significant period of paid leave in your contract of employment, a longer deferred period could be an option.
If you are self-employed, Income Protection is a must. You will not be entitled to the State Illness Benefit meaning you would be reliant on savings should you be unable to work.
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
- As a self-employed person, you will not be entitled to the State Illness benefit.
- 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.
- Over 90% of Income Protection claims are paid out.
- The average Income Protection weekly payout is approximately €700.
- Income Protection will be out if you are unable to work due to illness, injury or disability. It will continue to pay out until you can either return to work or reach the retirement age agreed in your policy.
- Premiums will be eligible for tax relief at your marginal rate of tax.
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
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Legal Practicioners Income Protection Insurance FAQ's
Income Protection is designed to replace a percentage of your income. Therefore, it is applicable to almost everyone. Should you work in the legal sector, you may do so as a self-employed person or as an employee.
If you are self-employed you will not be entitled to the State Illness Benefit should you be unable to work. This means you could go from earning your monthly salary to having zero income. An Income Protection policy will stop such a scenario from occurring.
If you are an employee, you may be entitled to receive the State Illness Benefit should you be unable to work due to illness or injury. However, this is a modest €208 per week and has a maximum claim period of two years.
Without an income, even basic living expenses will be difficult to accommodate never mind a mortgage, rent, childcare, or other more substantial expenses.
Apart from having peace of mind and not depending on savings to provide you with an income, Income Protection has many tangible benefits.
These benefits include:
- Tax relief on premiums at your marginal rate.
- If premiums are paid through a company, they are eligible for corporation tax relief.
- If required, benefits will be paid long-term until you can either return to work, or reach the retirement age outlined in your policy.
As someone who works in the legal sector, you will fall under Class 1 occupation. This means you will be seen as the lowest risk category and your premiums will reflect this.
With tax relief applied, a premium of €150 per month will actually cost €90.
There are certain factors that will directly impact the cost of your premiums. These include:
- Occupation
- Percentage of salary you would like to cover
- Age
- Health
- Smoking status
- Deferred period
If you are unsure how much an Income Protection policy may be, please contact our team for more information.
A deferred period is the amount of time from when an individual is first unable to work until the date their benefits begin to be paid.
The shorter the deferred period, the more expensive the premium will be. Deferred periods often start at 13 weeks and range from here to 52 weeks. However, deferred periods of 4 and 8 weeks are possible in some circumstances.
The easiest and quickest way to arrange a policy is by contacting our team via 01 963 0436 or by email at [email protected]
Often with Income Protection there may be other elements to consider. Having a conversation with a member of our team will allow you to assess possibilities and see what cover may be most suitable for you.