Income Protection Insurance
Protect your income if illness or injury stops you from working, with expert advice and access to leading insurers in Ireland.
Why choose Howden for personal income protection insurance?
Our team strive to arrange bespoke income protection solutions, on your behalf, simply and easily. We pride ourselves on doing the heavy lifting, so you don’t have to. As an insurance broker, we have great relationships with a selected panel of standard and specialist insurers, and that allows us to make the process of comparing multiple different insurance policies, on your behalf, simple and easy. What’s not to like?
We’re also aware that each policy needs to be as individual as its owner, and that’s why we provide a personalised service, focused on getting to know you and finding out exactly what you want from your insurance cover.
Ultimately, whether you need to make a claim, purchase a new policy, or renew an existing one, just know that we’re here to help.
Benefits of working with Howden:
Protect up to 75% of your salary (to a maximum benefit of ~€250,000 per year) if you can’t work due to illness or injury.
From mortgage and rent to bills and family costs, income protection helps you maintain stability when your income is disrupted.
Whether you are employed, self-employed, or running your own business, cover can be shaped around your income, role, and circumstances, subject to policy terms and conditions.
You may be able to claim tax relief on your premiums, making income protection more affordable.
Includes services such as mental health support, rehabilitation, or second medical opinions to help you get back to work sooner.
Howden compares options from leading providers to help you find cover that fits your needs, not just a single product.
About salary or income protection
Income protection insurance is designed to provide a regular income if you are unable to work due to illness or injury.
Instead of paying a lump sum, it pays a monthly benefit that can help cover your day-to-day living costs while you recover. This is typically based on a percentage of your earnings, giving you ongoing financial support during periods when you cannot work.
Income protection is different to life insurance or serious illness cover. It is focused on replacing your income while you are living, helping you manage bills and expenses until you can return to work or reach the end of your policy term.
For many people, income protection is one of the most practical ways to protect their finances, because it protects the income that underpins everything else in their life.
How income protection works
Income protection insurance pays you a monthly income if illness or injury stops you from working for a period of time. In most cases, cover can protect up to 75% of your earnings, although the amount you can claim will also depend on any other income you receive while you are out of work, such as state benefits or employer sick pay.
How much can you claim?
The amount you can insure is usually based on your earnings at the time you take out the policy. Many providers allow cover of up to 75% of income, subject to overall monetary limits and proof of earnings when you claim. That means the policy is there to replace a meaningful portion of your income, not to leave you better off than if you were working.
When do payments start?
Payments do not usually begin straight away. Instead, you choose a deferred period, which is the waiting time between stopping work and your benefit starting. Common deferred periods in Ireland are 4, 8, 13, 26, or 52 weeks, and choosing a longer one will usually reduce the premium. This lets you match the policy to any sick pay, savings, or emergency fund you already have in place.
How long do payments last?
Once a valid claim is in payment, income protection can continue until you are fit enough to return to work or until the policy reaches its end age. Depending on the provider and plan you choose, the policy can often run to an expiry age between 55 and 70. That long-term support is one of the biggest differences between income protection and shorter-term cover.
Who should consider income protection?
Income protection can suit a wide range of people, especially those who rely on their income to meet regular financial commitments.
It may be worth considering if you are:
Employed with limited sick pay
Self-employed or a contractor
A company director depending on business income
Supporting a mortgage, rent, or family expenses
Even if you receive employer sick pay, income protection can help extend cover beyond that period. If you're unsure whether income protection is right for you, get in touch with one of our advisers by calling us on 0818 024 102 or completing our quote form and we'll be happy to talk through your options.
What affects the cost of your income protection cover?
The cost of income protection is personal to you, so there is no one-size-fits-all price. When insurers calculate the premium, they look at a number of factors that affect the likelihood of a claim and how much could be paid out.
Your age: In general, the older you are when you take out cover, the more it is likely to cost. Taking cover out earlier can often mean lower premiums and fewer health-related restrictions.
Your occupation: Your job plays a big role in pricing because some occupations are viewed as lower risk than others. Office-based roles are often cheaper to insure than jobs involving manual work, exposure to hazards, or physical strain.
The level of cover you choose: The more income you want to protect, the more the policy is likely to cost. This is because the insurer could be paying a higher monthly benefit if you claim. A lower level of cover can reduce cost, but it is important to make sure it would still be enough to support your essential outgoings.
Your deferred period: The deferred period is one of the most effective ways to manage cost. A shorter waiting time means the insurer could start paying sooner, so the premium tends to be higher. A longer deferred period usually lowers the premium, provided you can rely on savings or sick pay during that time.
Your health and lifestyle: Your current health, medical history, smoking status, and some lifestyle factors can affect your premium and the terms of the policy. In some cases, an insurer may apply an exclusion for a pre-existing condition or ask for more information before offering terms.
How tax relief can help lower the cost
Are income protection payments taxed?
Yes, income protection claim payments are generally treated as taxable income. That means while tax relief can reduce the cost of the premiums you pay, the monthly benefit you receive if you claim will usually be subject to tax. This is an important point to understand when deciding how much cover you need.
Can you claim tax relief on premiums?
One of the main advantages of income protection in Ireland is that premiums may qualify for income tax relief. In many cases, this relief is available at your marginal rate of tax, which means it can reduce the real cost of cover significantly. For some people, that can make income protection much more affordable than expected.
How to claim the relief?
How you claim tax relief will depend on how your policy is arranged. With many individual plans, tax relief needs to be claimed from Revenue, either through your annual tax return or by adjusting your tax details. That is why it is worth getting this set up correctly from the start, so the cost savings are not missed.
What income protection does not cover
Income protection is designed to cover illness and injury, but there are limits to what it includes.
It does not typically cover:
Redundancy or loss of employment
Being unable to work for non-medical reasons
Undisclosed or pre-existing medical conditions (subject to underwriting)
Understanding exclusions is an important part of choosing the right policy.
Why buy income protection through Howden?
As a broker, Howden Ireland works on your behalf to find the right cover.
We:
Assess your needs and explain your options clearly
Compare income protection policies across leading protection providers in Ireland
Help match cover to your income, job, and circumstances
Support you at every stage, from choosing cover to making a claim
We focus on giving you advice that fits your life, not just a product.
Note: This is a marketing article from Howden. The information in this guide is accurate at time of publication. This content is provided for general information only and does not constitute financial or insurance advice. If you have any questions about making a claim or want to understand how income protection could work for you, call us on 0818 024 102 and we'll be happy to help.
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