Income Protection – do not under estimate how important this type of cover is!

Income protection quite simply is the most important type of insurance cover you could
take out.

This is a big statement to make but why is this so?

Your income is your biggest asset. We all insure our car, our homes, our phones,
bikes – we even insure our pets! What pays for all of this? Yes, our incomes.

If you were unable to work due to an accident, illness or a disability how would
you and your family survive? The state provides an invalidity benefit of €188
per week. Could you survive on this?

Below are 2 actual case studies of clients of Flanagan Ford who had to rely on their
income protection policies. (Names have been changed)

Case Study 1

Michael aged 36 was diagnosed with Cardiomyopathy in Sept 2011. He was the main income earner in the home, his wife was made redundant not long before he became ill
and they have one child. The outlook was and still is that he will not return to work for some time.

They have a mortgage that needs to be paid, plus household bills plus all usual
costs we all are well aware of. There was a sick pay scheme at work for 6 months but nothing after that.

Michael had a 52 week deferred period on his policy and on 19.09.2012 his claim
started. He will be in receipt of his weekly benefit (paid monthly to him) until he reaches 65 if he does not get back to work. This gives Michael and his family financial security so that he can concentrate fully on getting better.

Case study 2

Susan is nurse who was involved in a road traffic accident in 2011. As a result of
her injuries she was unable to perform her normal duties as a nurse.

Susan is married with 2 children. She and her husband built their home recently have
a mortgage that needs to be paid along with all other household expenses. As a
nurse Susan had 6 months full pay and 6 months half pay through the HSE. Susan
also has a 52 week deferred period on her policy and is now in receipt of her
income through her policy.

Susan should return to work but has a lot of rehab & physio before she will be fit enough to return to her normal job. The great thing is that because she is in receipt of income she is not under pressure financially and can concentrate to recovering fully before she returns to work. Without this cover, who knows?

We never want to rely on the insurance policies we take out. Too many times we
hear from people who we recommend this to that it is too expensive and that
they cannot afford any more direct debits coming out of their account. We
understand this, we do.

But this debit means that there will be a credit going into your account if you
cannot work!! You can afford it. You can’t afford not to have it.

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